Student Loans

Going to university is an expensive business. Not only are you faced with the cost of living away from home but, you also have to pay for your tuition fees.

For the vast majority of people it means taking out the two-part Student Loan, one part for tuition fees (most traditional universities will charge the full £3,145 in the coming academic year) and one part for accommodation and so on, up to a maximum of £6,475.

Even though it has to be repaid you will only receive 75% of the accommodation loan automatically and how much, if any, of the remaining 25% will depend on what your parents earn.

If you think that sounds quite generous, bear in mind that many universities will charge around £4,000 for your first three terms in a hall of residence. Add on the cost of clothes, toiletries, mobile, course materials, travel, going out and so on… and you might start wondering if it's actually sufficient.

Unless you're fortunate enough to receive a generous allowance from your parents, it's probably worth getting some work during the summer vacation. Some students also work part-time during term time but, be careful not to take on too much… or you'll not have sufficient time and energy left for your studies.

It's not all bad news though. Firstly, you don't have to start repaying your loan until you are earning over £15,000 a year and secondly, the interest rate used is relatively low, equivalent to inflation… which basically means the sum amount won't increase in real terms.

Important - make sure you apply for your Student Loan as soon as you have confirmed acceptance of your place at university .

Maintenance Grants

There is also a non-repayable Maintenance Grant available which is designed to assist students from low income households. However, the maximum you can receive in the coming year is £2,835 and some of this may be paid instead of (not as well as) your Student Loan.

Bursaries

Some universities offer a limited number of bursaries (a non-repayable lump sum) but, they are seldom more than £1,000 and you'll be competing with other students to demonstrate that your are a worthy recipient.