All students have access to some financial assistance for university. Knowing what is available, alongside additional sources of income, can prove invaluable in sourcing a bit of extra cash to spend on enjoying yourself.

student loans for tuition fees

Students who cannot afford to pay for their tuition fees before they start university need to apply for a student loan for this purpose, which means that the Student Loans Company pays the tuition fees direct to your university.

• You will be able to borrow the full amount of the tuition fees that you have been charged by your university or college.
• You will only be expected to repay this loan once you have left university and are earning over £15,000.
• Your repayments are calculated at 9% on your earnings over the £15,000 threshold. For example, if you are earning £17,000 then your repayments will be £3.46 per week (2,000 ÷ 52 x 9%).

maintenance grants

Maintenance grants are available to help students from low income families with living costs and are allocated depending on your household income.

• £2,765 – this is the maximum grant available for students commencing study in 2007. This is available to families with a household income of less than £17,910.
• For students from families with a household income of more than £17,910 but less than £38,330 a sliding scale then applies.
• For students with a household income of more than £38,330, no grant is available.

Other facts about maintenance grants:

• The maintenance grant is credited to your bank account along with your ‘student loan for maintenance’ at the start of each term (i.e. 3 instalments).
• You do not have to repay the maintenance grant.
• Your student loan for maintenance (see below) will be reduced by £1 for every £1 of maintenance grant that you receive, up to a maximum reduction of £1,230.

Applying for a grant usually requires completion of an arduous form from your local educational authority, but it’s worth it if you think you’ll get it. Fear not if you think £2,765 is not enough to cope, as most universities offer guaranteed bursaries to students claiming the maximum maintenance grant. For more advice go to www.ucas.com/studentfinance/help/grants.html.

student loans for maintenance

The amount of loan you can borrow depends on your household income. Also if you decide to live at home you will receive less, as the Government will assume your parents aren’t charging you for rent and food! The maximum amounts you can borrow are (2007/2008):

• Living away from home (excluding London) – up to £4,510
• Living away from home in London – up to £6,315
• Living at home (London and elsewhere) – up to £3,495

Other facts regarding your student loan for maintenance:

• The loan is normally paid in three instalments at the start of each term.
• You will have to start repaying your student loan once your salary exceeds £15,000.
• The interest on your student loan runs roughly in line with inflation and is therefore better value than other loans. However, interest accrues whilst you are studying i.e. as soon as the cash hits your account!
• You usually get a repayment holiday until the April following your graduation
• Repayments are calculated at 9% of your earnings over £15,000 and are directly deducted from your monthly pay (check your payslip!).
• If you decide to do something other than work (or earn less than £15,000) for the next 25 years then your student debt will be wiped after this period (probably not worth avoiding repaying your student debt for!). The government will also write off any part of your student loan that remains after this 25 year period.

bursaries

If an institution sets its tuition fees above £2,700 a year (and many of them do) then it must offer a bursary to students who qualify for the maximum maintenance grant. Like grants, bursaries don’t have to be repaid, so it’s well worth checking whether you qualify for one.

• The bursary will at least match the difference between the tuition fees charged by the university and the maintenance grant (£2,765). For example, if the tuition fees are £3,070 then at least £305 will be available as a bursary.
• However, many universities offer bursaries of around £1,000 to students in receipt of the full maintenance grant.
• Students who are entitled to a partial maintenance grant may be offered a bursary between £50 and £2,500, depending on the university.

If you’re lucky enough to survive the interviews, get excellent grades and be offered a place at a cash-rich university like Oxford, Cambridge or Imperial College London then up to £4,000 could be winging its way to you each year!

scholarships

Scholarships are usually given out for students with an excellent academic record who apply to certain subjects. They are, however, in short supply. Some are linked to household income, others are not, so if you are a budding mathematician, physicist or sporting hero then really look out for them.

professional studies loans

Banks are usually climbing over each other to try to make you their financial slave for years to come, and as a result are willing to offer you any number of financial products while you are a student. Professional studies loans are usually offered to students studying longer or more expensive courses such as Medicine, Law or Architecture, where it may be more difficult to fit part time work into the course. You may be grateful to your bank at this point, but remember it is merely biding its time until you’re a successful professional with a nice wad of cash to invest in its products! Be aware that you may well be repaying these loans for years to come, so make sure you are taking them out for a good reason.