Student Fees and Financial Support Student Fees Financial

Student Fees and Financial Support

Student Fees & Financial Support Student fees and financial support can be broken down into three main areas: • Tuition fees • Living Cost Loans • Living Cost Grants

Tuition Fees • Nobody has to pay fees ‘up front’- fees are paid by a tuition loan • Universities will be able to charge a maximum of £ 9, 000 a year • Graduates begin loan repayments once earning over £ 21, 000 (rising with inflation) • Interest on loans is charged at inflation plus 3% whilst studying. After graduation and once earning, rate of interest will be dependent upon earnings i. e. lower earners pay less interest. • There may be different fees for different courses, so check what the fee is for your specific course at your chosen institutions

Living Cost Loans • Living away from home: maximum of £ 5, 740 • Living at parental home: maximum of £ 4, 565 • It will be paid back after graduation, once you are earning over £ 21, 000, rising with inflation (along with your tuition fee loan) • The amount you are entitled to is dependent on household income and how much non-repayable grant you are entitled to

Repayment • You will repay once you have graduated and are earning £ 21, 000 or over, starting in the April after graduation • Repayment levels rise with your earnings – you pay back 9% of anything you earn over £ 21, 000 • Deducted automatically from your salary through the tax system • If your income falls below £ 21, 000, repayments will be suspended • As an example, if you earn £ 25, 000, you will repay your loan at the rate of just £ 1 per day • You repay based on what you can afford, not on the total amount borrowed • All outstanding repayments will be written off after 30 years

Repayment • The real cost of paying back your tuition fees: Cup of Coffee

Repayment Salary Amount of salary Monthly repayment from which 9% will be deducted £ 25, 000 £ 4, 000 £ 30, 000 £ 9, 000 £ 67 £ 35, 000 £ 14, 000 £ 105 £ 40, 000 £ 19, 000 £ 142 £ 45, 000 £ 24, 000 £ 180 £ 50, 000 £ 29, 000 £ 217 £ 55, 000 £ 34, 000 £ 255 £ 60, 000 £ 39, 000 £ 292

Graduate on £ 25 k Net pay Student Loan Tax National Insurance Pension (6%) £ 30 000 £ 25 000 £ 20 000 £ 15 000 £ 10 000 £ 5 000 £ 0 No Loan Current New

Living Cost Grants • Non repayable • Dependent on household income • Full grant is £ 3, 387 for family incomes under £ 25, 000 • Family incomes up to £ 42, 620 receive proportion of grant • Remember that the amount of grant you receive will affect the amount of living cost loan you are entitled to

Total support available Household income Living cost grant Living cost loan Total £ 25, 000 or less £ 3, 387 £ 4, 047 £ 7, 434 £ 30, 000 £ 2, 441 £ 4, 520 £ 6, 961 £ 35, 000 £ 1, 494 £ 4, 993 £ 6, 487 £ 40, 000 £ 547 £ 5, 467 £ 6, 014 £ 45, 000 £ 5, 519 £ 50, 000 £ 4, 998 £ 55, 000 £ 4, 476 £ 60, 000 £ 3, 955 Over £ 62, 125 £ 0 £ 3, 731

NHS related degree courses • NHS courses are funded differently – you will not be required to pay tuition fees • There are grants and bursaries available some of which are meanstested. • Finance for grants and bursaries is applied for directly through the NHS. They will write to you once you have been offered a place. • Finance for the non means-tested loan is applied for through the Student Loans Company • See www. nhsbsa. nhs. uk/students for detailed information

How does it all happen? • You can apply from February through the Student Finance England website at http: //www. sfengland. slc. co. uk/ • You apply for second and third year support after Christmas in your first and second year • If you are having a gap year, you should apply for your course at the same time as your peers, for finance, apply 12 months later

Budgeting • It is likely that there will be a gap between the money you will receive in loans and grants and the money you need to live as a student • It is very important to work out a budget before you start university • Make sure you know how much money you have coming in, and how much you expect to have going out • Identify where the extra money might come from if there is a gap - before you get into any financial difficulties

Additional support: part-time work • Many students have a part-time job whilst they are at university • Most universities encourage part time work, often having ‘Jobshops’ located on campus advertising part-time student work • Part time work provides students with valuable experience as well as extra money (an average of £ 85 per 13 hour week*) • It is important not to let your part time job interfere with your studies – working no more than 15 hours a week is recommended University of Huddersfield Careers Service *From The Complete University Guide 2013

Additional support: banks • Interest free overdrafts • Credit cards • Look carefully at incentives offered • For independent advice and guidance on student bank accounts and budgeting look at www. moneysavingexpert. com

Sources of student finance Loans, grants Parents/ Sponsorship Carers Sources of student finance Disabled Student Allowance Scholarships Gap year or part time work

Tips for students Work out income and outgoings Shop based on need, not impulse Set up two bank accounts Don’t blow all your cash at the beginning of term If sharing a house, decide who is paying for basics

Further information • • • Careers adviser/tutor at school/college Careers library University of choice/local university www. ucas. com (lots of information about everything) www. thestudentroom/studentfinance www. nasma. org. uk/students www. moneysavingexpert. com/students www. thebrightsidetrust. org www. which. co. uk/money/bank-accounts/guides/going-to-university-guide www. nus. org. uk www. scholarship-search. org. uk www. nhsbsa. nhs. uk/816. aspx

Final points to remember • Students or parents do not pay tuition fees up front • Keep to deadlines for application! • Loans are not negatively credit scored • If in doubt, ask!

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