Everything You Need To Know About Student Finance - Part 1
One of the most daunting things about beginning university is the financial aspect - paying for university and accommodation, and also the living fees of simply living outside your home if that is your plan. Most of us are used to not having to learn how to budget, or repay loans, or pay bills or rent and this can be terrifying when you move out the first time. In the next few blog posts, we are going to be discussing student finance in depth, and give you everything you need to know about student loans. This week’s post will focus on student loans, how they work and how much you are applicable for, and next week’s blog post will focus on budgeting money and repaying your loan.
In the UK, the government provides you with the option to take a tuition loan to cover the cost of tuition fees, as well as the option to apply for a maintenance loan for other large expenses. Of course, there is always the option to fund your education on your own if you are able to, but this is not possible for most people especially as university in the UK is quite expensive. Let’s start with some basic questions:
What are tuition fees and how much are they?
Tuition fees cover the cost of your education - it is the cost of the teaching you receive at the university as well as course admin costs, access to school facilities etc. In England, Wales and Northern Ireland, tuition fees are around £9250 for residents of the UK, but in Scotland, tuition is free for Scottish residents (but £9250 for non-Scottish residents). If you are applying from overseas, the fee you pay varies vastly based on the university, but it is significantly more expensive. Your tuition loan should cover the entire cost of your tuition, and sometimes can even cover the cost of one extra year in case you drop out and return, or fail a year and have to retake it.
What is a maintenance loan and how much am I able to get?
This is for the other major living costs of living from home, and is based on your parent’s income as well as other factors, such as where you are studying - students studying in London tend to get more money simply because the cost of living in London is so much higher. However, this loan is unlikely to cover all your living costs so you will have to make up the difference, either by earning money or getting help from your parents.
Other ways of getting money
Obviously, some students are more disadvantaged than others. This is why there are additional loans you can apply for if you are disabled, a parent, have someone else financially dependent on you or are facing some other financial hardship. Disadvantaged Students Allowances (DSAs) are non repayable and are if you have a mental illness, learning disability, an impairment or any other disability. They are not based on your income but rather your needs. There are also many scholarships, bursaries and grants you can apply for through the university for extra financial help. These grants and scholarships do not need to be paid back either, so are a great way to get some extra money.
How do I apply for a student loan?
Everyone is applicable to a student loan as long as you meet certain criteria: You are a UK resident and have been living in the UK, Channel Islands or the Isle of Man for at least three years before the start of your course, you are studying at a recognised institution, you are studying a full-time recognised course and this is your first higher education course. If you do not meet these criteria e.g. if you are studying part-time or it is not your first course, you still have options and it is best to research them thoroughly for your particular circumstances. You have to apply for student finance at the start of every year of your course. The deadline to apply is usually in May after you should have received most if not all of your offers. The dates may vary based on what country in the UK you live in, so make sure to apply early to leave time for any changes.
Hopefully, you should now be well-informed about what a student loan is and how to get one. Next week’s blog post will focus on repaying your loan, interest rates and also tips to help budget all your expenses while at university. There are many people you can ask for advice, and check out the UCAS website for more practical details and help. Good luck!
