Financial support for higher education students

Help towards tuition fees

The amount of support you can get towards paying tuition fees, will depend on the year in which you apply, and the income of your household (normally your parents). Help towards tuition fees does not have to be repaid. Generally speaking, the lower the household income, the more financial support you can expect. The household income is calculated from your parents’ residual income, (income after certain deductions). These take into account factors like how many dependent children your parents have and pension schemes. For the current academic year 2005/2006, students from households with a residual income of less than £22,010 aren’t required to pay any tuition fees. For those in households earning between £22,010 and £32,744, part of their fees must be paid by them, and for those in households earning over £32,745 the full tuition fee of £1175 is payable. Students who are not supported by their parents, or have particular circumstances such as children or disabilities, will have this taken into account when they are being assessed for support.
Higher Education Grant
For the academic year 2005/2006, a grant of up to £1000 is available to some students. It is provided to help with the cost of higher education and does not have to be repaid. Students who are eligible will be either new full-time, sandwich or part-time initial teacher-training students. The amount of the grant is dependent upon your household income. The full grant is available for household incomes which are £15,580 or less, for those above £15,580 but less than £21,565, a part of the grant is available. If the income is higher £21,565 then none of the grant is available. For students entering university after the academic year 2005/2006 this grant will no longer be available, but they will be eligible for a special maintenance grant.
Student Loans
Student Loans are provided to help with the cost of living; accommodation costs, food, travel and materials for learning. They do have to be repaid, but only after you have left university and at a rate of repayment relating to your income. The amount of the loan depends on where you live and how much your household income is. 25 per cent of the loan is assessed on household income. In 2005/2006 the maximum loan for students living in London was £5175 and up to £4195 for those living outside. The loan is usually paid into your bank account in three instalments spread over the year.
Other Support
In certain circumstances there are other means of financial support to help students in higher education. Some of these include Childcare Grants, Child Tax Credit from the Inland Revenue, Parents’ Learning Allowance, Adult Dependents’ Grant and Disabled Students’ Allowances. For the complete list of support available visit the Student Finance Direct website.
How can I repay my student loan after having finished my studies?
You are responsible for repaying your student loan if you leave the course before the end, or when you reach the completion of your course. Repayments are due in the April following when you leave your course. The rate at which the loan is repaid, is related to your income. No repayments are required if your income is below £15,000, and for incomes of £15,000 and above you will be expected to repay 9% of the income above £15,000.
Loan Repayment Example
Your income is £17,000. This means you pay 9% of £2000, because your income is £2000 more than the threshold value, £15,000.
(9÷100) × £2000 is £180.
£180 is the yearly loan repayment.
To work out how much you’ll pay each month, divide the yearly amount 12.
£180 ÷ 12= £15
The monthly loan repayment is £15.
Will I have to pay interest on the loan?
The level of interest chargeable on your student loan will be linked to inflation. So the value of the amount you repay will be broadly the same, in real terms, as the value of the amount you borrowed.