Finance Facts
- Universities can charge anything up to £9250 tuition fees per year on every course
- Universities can decide what they charge, and some vary according to the subject you study
- There are two types of Student Loan: Tuition Fees and Maintenance Loans
- One loan to cover tuition fees and a separate loan for living costs from Student Finance England
- Bursaries, scholarships and additional support available
Tuition Fees
- University tuition fees will not only vary between institutions, but potentially within the institution as well depending on the subject you (the student) study
- Eligible students won’t have to pay any tuition fees before starting or whilst they are studying
- This loan will be paid directly to the university
Living Costs – Taxable Income
- Means tested student finance – Maintenance Loans are determined by a students’ taxable household income i.e. students’ parent(s) or partner
- 2024 entry – provide proof of taxable income for 2022/23 financial year
- If household income decreases by 15% or more, students can request that their student finance is reassessed for the academic year
Living Costs – Maintenance Loan
The maximum loan available in 2023/24 to students is as follows;
- Parental Home Rate: live at home while you (the student) study = £8,400 per year
- Elsewhere Rate: live and study away from home outside of London = £9,978 per year
- London Rate: live and study away from home in London = £13,022 per year
- All paid in 3 equal payments to you (the student) at the start of each term
Repayment of Loans
- The Student Loans received for maintenance and tuition fees will be combined into one amount
- Start repaying loan from the April after you (the student) have completed or left your course
- Repayments are linked to income – you (the student) don’t start paying anything back until you (the student) are earning over £25,000 a year
- Repay 9% of your annual income over £25,000 per year
- Interest rates are normally set at Retail Price Index (RPI) and capped at 7.3%
- Repayments are made automatically through the tax system and how much you (the student) pay is determined by how much you earn
- For example, if you earn £30,000, only £5,000 is over the £25,000 threshold. Therefore, you (the student) would pay back 9% of £5,000, £450, or about £38 per month. If you earn £60,000, £35,000 is over the £25,00 threshold. Therefore, you (the student) would pay back 9% of £35,000, £3,150, or about £263 per month.
- Any student debt is cancelled after 40 years with no consequences
Bursaries & Scholarships
- Bursaries and scholarships vary between institutions and their courses – look at their websites or contact them to see what is available
- These are additional to the Maintenance Loans and do not have to be repaid
- Must contact the universities directly to apply for scholarships
Parental Concerns
Am I (the parent) expected to help financially?
In some cases funding from Student Finance may not cover all expenses but it is your (parental) decision whether or not to help financially. Talk to your son/daughter beforehand so that you are all clear on any financial matters
Will it affect their ability to get a mortgage/other credit and loans in the future?
Student loans are unsecured government lending and are very different to commercial loans. They don’t go on credit files or show up on credit check and will not affect the ability to get a mortgage.
If my child is unable to repay their loan, do I have to foot the bill?
No. Student loans are the sole responsibility of the student who takes them out
Additional Support for Students
NHS course funding – for Nursing, Midwifery and Radiography students: https://www.healthcareers.nhs.uk/career-planning/study-and-training/considering-or-university/financial-support-university
Disabled Students’ Allowance (DSA) – helps UK students with the extra essential costs you (the student) might have as a direct result of your disability, long-term illness or specific learning difficulty: https://www.gov.uk/disabled-students-allowance-dsa
Adult Dependents’ Grant – for eligible UK students with an adult who depends upon them financially (e.g. partner)
Useful Websites
www.moneysavingexpert.com/students
www.gov.uk/disabled-students-allowance-dsa
University Finance Guides: