Pure Potential

Student Finance

Every student that applies to university every year is faced with the stark reality that groceries, toiletries, socialising, books and pretty much everything else costs money - and that's before they've even thought about accommodation and tuition fees!

So where's this money going to come from? Luckily it's not all bad news, there are many ways you can get funding for university and the system has been designed so that no-one should worry about going to university because they can't afford it. Financial help is available in the form of loans, grants and bursaries so if you do your research and make the effort you'll find lots of doors opening for you.

We sought advice from Directgov to bring you the most up to date information. If you are a Welsh student you need to look at Student Finance Wales because the process is different.

So what are the costs?

The main costs are tuition fees and living expenses. It's true that these can be substantial so you need to do some calculations before you go. The main costs tend to be:

• Tuition fees
• Travel (both travelling from home to uni as well as travel while you're there)
• Shopping (food, clothes, etc.)
• Accommodation (feel free to call the uni to get an estimate of what this might be)
• Study (books, stationery etc. - note that this will vary from course to course)
• Social (cinema, pub, gym, TV, etc.)

Open up a spreadsheet, write down as many expenses as you can think of, do some sums so you know the size of the problem - then see below for some of the ways in which you can get help…

How to pay for it

The list below details the main types of repayable and non-repayable financial help. We are not going to try and give all the information here. We want you to understand three things: there IS a solution, there are ways to help you meet the costs and there are many sources which can help you find out further information.

1. Government Loans

There are two types of Government loan available:

• The Tuition Fee Loan covers the cost of tuition fees
• The Living Costs Loan goes towards other costs such as rent and food

You can apply for an annual Tuition Fee Loan of up to £3,225 per year, regardless of your household income. The Student Loans Company sends your Tuition Fee Loan directly to the institution to cover the cost of your fees.

You can apply for an annual Living Costs Loan of up to £6,928 (living away from home outside London) per year depending on where you study and your household income. The Student Loans Company sends your Living costs Loan directly to your bank account in instalments throughout the year.

The most important thing to remember about anything you borrow from the Student Loans Company is that you won't have to start paying anything back until you have left your course and are earning at least £15,000 a year and then you only have to pay back 9% of your income above that amount. So at present someone earning the average starting salary for a graduate level job of £18,000 would pay back £5.19 per week.

2. Government Maintenance Grants

A non-repayable Maintenance Grant of up to £2,906 is available from the Government for students from low income households and it is expected that up to half of all full-time students will be eligible for at least part of the grant.

The Student Loans Company send your grant payments directly to your bank in instalments throughout the year.

For more information on Government loans and grants and to apply, visit the Government website. 

3. Bursaries & Scholarships

Universities and higher education colleges offer additional, non-repayable financial help in the form of bursaries which are allocated according to the course you choose and your household income. Those universities and colleges charging the full tuition fee are required to provide bursaries to those students who also receive the full Maintenance Grant. We cannot stress enough how important it is to do your research. It can really pay off and you could be entitled to thousands of pounds to help you with your studies. The best way to research thoroughly is to make a shortlist of the universities you would consider applying for and get on the phone and find out what they have to offer. Further information on bursaries is available here. 

Universities sometimes offer scholarships to high acheiving students. Again, it is really important to do your research and contact all of the institutions you are considering applying to for details.

4. Overdraft

All the major high street banks with whom you will likely open a student account around the time of starting at university offer a large interest-free overdraft. For example, Lloyds offers £1,500 for the first three years of study (see here).

This is not paid back until well after your degree when you are earning. Since this needs to be paid back though, it should be viewed as the least desirable of the six options here.

5. Part-time work

Many students choose to combine earning some extra money with getting some real-world experience through part-time work. This could be inside (e.g. working in the union bar) or outside (e.g. at a supermarket) the university. Either way, it helps, and, if you're reasonably organised shouldn't adversely affect your studies. Another benefit to part-time work is that you can earn up to £6,475 a year without paying tax.

6. Savings

Some lucky people have family that can and choose to help out financially. This obviously helps. It's also sensible, if you can, to save some money yourself, particularly before embarking on a costly adventure like university, however worthwhile it will turn out to be.

On top of all of the above you may be eligible for other grants e.g. those offered by the Frank Buttle Trust.

If you are an international student studying in the UK and would like on student finance, please click here.