Tuition fees: can you afford to go to university?
People of all ages and walks of life can afford to go to university.
Here are a few examples:
» Eve Taylor (18)
Eve Taylor (18) wants to live with her parents, who both work full time, while she studies full time at university. She has a part time job, but is thinking about giving this up when she starts her course.
Eve said:
I'd really like to start university in September but even though my parents both work they don't have enough money saved to cover the cost of my tuition fees. They're also worried about me graduating from university with a huge debt.
Expert view:
Neither you nor your parents need to have savings for you to be able to go to university. You can take out a tuition fee loan to cover the full cost of your fees.
You'll also be eligible to apply for a maintenance loan of up to £4,375 to cover any additional costs, like books and travel. However, this will increase the amount you have to pay back so if you can manage to balance your studies with your job and use your earnings to cover your university expenses then that would be a good option.
If your parents' income is less than £42,600, you'll also be eligible for a maintenance grant of up to £3,250, which you won't have to pay back. If you receive the maximum maintenance grant of £3,250 each year you'll be eligible for a maintenance loan of £2,750 as the loan you're eligible to will be reduced by 50p for every £1 of grant you
receive.
When you're earning over £21,000 you'll have to start repaying your student loan and maintenance loan, if you take one out. You'll repay 9% of your earnings over £21,000, so if you get a job that pays £25,000 per year you'll pay back £30 each month or £142.50 each month if you get a job with a salary of £40,000 per year.
» Hannah Smith (43)
Hannah Smith (43) lives with her husband Tim, who works part time for the minimum wage, and their two children, Susie (one) and Harry (three).
Hannah says:
I'd really love to start university full time in September as I'm keen to get back into work by re-training as a nurse. However, I'm worried about how I'm going to fund my studies. As well as paying my course fees, I'm going to need to cover the costs of childcare when I'm at university and we struggle to make ends meet as it is. Is there any financial support available to me?
Expert view:
As you'll be studying nursing, the NHS will pay your course fees and you'll be eligible for a means tested bursary to help you to cover your living costs.
» Lucy (50)
Lucy (50) is married to Jim (53) who works full time and earns £18,000 each year. They have three grown up children who live away from home.
Lucy says:
I've reached a time in my life when I need to put myself first and I'm going to do this by going to university. We only have a small mortgage, but I don't think we're going to have enough spare each month to pay for my travel expenses and the equipment I'll need for my course. We don't have any savings to pay my tuition fees. Is there any help available to me?
Expert view:
Don't worry about having savings to pay for tuition fees. You can take out a tuition fee loan to cover this cost which doesn't have to be repaid until you're earning over £21,000 each year. If you decide not to work after you've completed your degree, you'll never have to pay your tuition fees back.
Based on your household income you'll be eligible for a maintenance loan of £3,875. You should also be eligible for a maintenance grant of up to £3,250 per annum, which is definitely worth looking into as it doesn't have to be paid back.
» John (32)
John (32) is single, lives on his own and after being in employment since leaving school has recently been made redundant.
John says:
My lifelong ambition has been to go to university and being made redundant has made me rethink my future. I'd really like to start university in September, but I've got monthly rent and living expenses to pay for and not many savings. I'd like to get a part time job during my course, but this won't be enough to live on. Can I take out a student loan?
Expert view:
You'll be eligible for an annual tuition fee loan to cover the full cost of your course fees, as well as a maintenance loan of up to £5,500, which will both have to be repaid when you're earning more than £21,000 each year.
As you're over 25 and have been supporting yourself financially for more than three years you're classed as an independent student, which means that you can also apply for a maintenance grant of up to £3,250 per year that you don't have to pay back.
If you receive the maximum maintenance grant of £3,250 each year you'll be eligible for a maintenance loan of £3,875 as the loan you're eligible to will be reduced by 50p for every £1 of grant you receive.
You may be eligible for a Special Support Grant if you receive means tested benefits, such as housing benefit, while you're studying. The Special Support Grant does not reduce the amount of maintenance loan you are entitled to. This means that you could still receive the maximum £5,500 in addition to the grant of £3,250.
» Ben White (47)
Ben White (47) gave up a career in retail to be a full time dad to son Charlie (four). Charlie's mum doesn't live in the UK anymore, so Ben has sole responsibility for looking after him.
Ben says:
Charlie's due to start school in September so I'm looking into the possibility of going to university to re-train as a teacher.
I'm a bit confused about the financial support that's available to me to help with the cost of studying. If I take out a loan I'm worried that on a teachers' starting salary I won't be able to afford the repayments and what if I ever find myself out of work and struggling to make ends meet?
Expert view:
The new tuition fees regime is confusing. You'll be able to take out an annual tuition fee loan from the Student Loans Company to cover the full cost of your fees, which only has to be repaid once you're earning at least £21,000, and even then it's only 9% of the amount you earn over that threshold. On a teachers' starting salary (on average £21,588) you'll pay around £4.41 each month, which will increase in line with your salary, but stop if you're ever out of work.
As you're over 25 and you don't live with your partner, your household income will be assessed as nil, so you'll also be eligible to apply for these allowances and grants on an annual basis:
- Government maintenance grant of up to £3,250 each year
- Parental learning allowance of up to £1,508 each year
- Childcare grant of up to £148.75 each week
You won't have to pay these allowances and grants back, but if you're still short of money, you can apply for a maintenance loan of up to £5,500, which you'll repay in the same way as your tuition fee loan.
If you receive the maximum maintenance grant of £3,250 you'll receive a maintenance loan of £3,875 as your loan will be reduced by 50p for every £1 of grant you receive.
You may be eligible for a Special Support Grant if you receive means tested benefits, such as housing benefit, while you're studying. The Special Support Grant does not reduce the amount of maintenance loan you are entitled to. This means that you could still receive the maximum £5,500 in addition to the grant of £3,250.
