Pure Potential

You will all be aware of the protest at the government’s decision to ask students to put significantly more of their future earning towards their education, and the political storm that has ensued as a result. Pure Potential’s role in all this is not to take sides, point fingers or make judgements, but to make sure that you, as the first year group of students to be going to university under this new system of fees, loans and grants, understand fully the financial implications of it all, and realise that it is not quite as bad as the newspaper headlines like to make out.

Although it’s never been more expensive to go to university, there’s never been a wider range of financial help and support available to students and their families. The main thing to remember is that you will not, under any circumstances, have to pay for any of your own fees whilst you are a student. Your student loan will cover this completely however high the fees are. In addition, you may be eligible for a further loan to help with your living costs. There has been a lot of exaggerated media discussion about student debt, so it’s important to keep sight of the reality.

It certainly remains the case that you should not let yourself be dissuaded from going to university because you’re worried about money, and the new reforms offer a more generous package to those from the lowest income families.

The crucial point about the student finance system is that you won’t have to pay it back unless and until you have enough money to be able to.

So dispel all thoughts of bankruptcy and living off baked beans for the rest of your life, because you won’t have to pay anything back until you are employed and on a rather decent salary of £21,000.

So what are the costs?

There are two main costs: tuition fees and living costs, of which tuition fees are the most worrying-factor for students. Here is a short summary of the new tuition fee system:

Any university or college will be able to charge a graduate contribution of up to £6,000 per year, and in exceptional cases some universities will be able to charge up to £9,000. Universities will also be able to charge different amounts for different courses. In order to be able to charge over £6,000 universities will have to demonstrate extra work in encouraging wider participation from students from different backgrounds and ensuring fair access.

Although it may be tempting to apply to the universities that charge the least, don’t fall into this trap too easily.
It will be the more respected universities, with the best resources and the leading professors that will charge more, and their courses may be worth more to you in the future ; having a top university on your CV is invaluable, so don’t make your choice on the basis of cost alone.

For more information on tuition fees, please visit the Save the Student website. Save the Student is a popular website where you will find a wealth of information and advice on a range of finance topics including student finance, discount vouchers and student offers. Visit the Save the Student page on our website for more information.

Where can I get the money from?

Loans

Your student loan is unlike any other loan you will ever have in your life, and although you will be charged a real rate of interest, it will be tapered to increase gradually as you earn more. Furthermore, repayments don’t start until after you’ve started earning, and they’re based on a proportion of your income, not on the size of the debt, but we will deal with that bit later... Finally, the government has now agreed to write off any debts still unpaid 30 years after the completion of your course.  There are different types of loan: