Student Finance in 2008/09 for England
People undertaking full-time higher education courses have two main costs to cover: tuition fees and living costs.
Tuition Fees
In 2008/09, universities and colleges in England can charge new students up to £3,145 a year for higher education courses.
Students can take out a Student Loan to cover the full amount of tuition fees they are charged.
This is a loan from the Government and doesn't need to start being paid back until the April after you’ve left your studies and are earning over £15,000 a year.
Interest on the loan is linked to inflation, so you can only pay back in real terms the amount borrowed.
Student Loans
Student Loans are the way most students finance their living and study costs whilst in higher education.
In 2008/09, there are two types of Student Loan:
Student Loans for Tutition Fees are available to cover any amount up to the full amount of tuition fees charged.
The loan isn’t means-tested.
The money is paid by the Student Loans Company directly to the university or college where a student is studying.
Students start to repay their loans in April after they have left their course and are earning over £15,000.
Student Loans for Living Costs The amount of student loan available depends on whether the student studies in or outside London, whether they live at home or not, their household income and the amount of any Maintenance Grant that they receive.
From September 2008 students studying outside London will be able to get up to £4,625 a year (a maximum of £6,475 for students studying in London, and up to £3,580 for those living at home) depending on household income.
It’s the student’s choice whether they wish to apply for either or both loans and it is not compulsory to take out either Student Loan.
Loan repayments begin in the April after the student has left their course and when their income exceeds £15,000 a year.
Repayment is at a rate of 9% of the income over £15,000. For example, a graduate earning £20,000 would pay £8.65 a week.
Repayments are deducted from a person’s salary by their employer along with tax and National Insurance contributions.
Where income falls below £15,000, repayments automatically stop until income rises above the threshold again.
Students who start their course in 2008 will have their loan balances written off by the Government 25 years after they have left their course.
All students starting a higher education course in 2008/09 or later, taking out their first student loan and having a repayment start date of April 2012 or later will be entitled to a "repayment holiday" – a break from paying their loan for up to five years – provided they are on their course on 6 April 2011 and are due to enter into repayment for the first time in April 2012.
Maintenance Grants
The income thresholds for non-repayable maintenance grants have been increased. It is estimated that one third of new full-time students entering higher education from 2008 are likely to be eligible for a non-repayable Maintenance Grant of £2,835 per year:
Household Income = Home much?
£25,000 or less = full £2,835 grant
Between £25,001 and £65,005 = partial grant
Over £65,005 = no grant
Grants are paid in three instalments - one at the start of each term. Contact your Local Authority for more information.
Extra Help
Non-repayable Special Support Grants of up to £2,835 a year are available for new full-time students eligible to replace the Maintenance Grant for people eligible to receive Income Support and other means-tested benefits.
Students cannot receive Maintenance Grant and Special Support Grant.
If you are disabled, you may be entitled to a Disabled Students’ Allowance.
Students with children may be able to get a Parents’ Learning Allowance and receive help with the cost of registered and approved childcare.
Bursaries
Universities and colleges charging the highest rate of tuition fees (£3,145) will provide extra financial help to students, particularly those from low income families.
This help could be in a variety of ways – for example cash or discounted accommodation costs. Students should check with the university or college that they wish to attend for more information.
The Access to Learning Fund
This fund provides extra money for students who find themselves in financial difficulties.
Students should speak to the institution’s student services department about making an application.
Part-time students
Financial assistance is available for those studying on a part-time course.
Fee Grants and Course Grants are available to a student depending on how intensive the course is and the income of their spouse or partner. These grants are non-repayable.
In 2008/09:
If the course is equivalent to 50% to 59% of the full-time course, the maximum fee grant = £785, the maximum course grant = £255, the total support = £1,040.
If the course is equivalent 60% to 74% of the full-time course, the maximum fee grant = £945, the maximum course grant = £255, the total support = £1,200
If the course is equivalent to 75% or more of the full-time course, the maximum fee grant = £1,180, the maximum course grant = £255, the total support = £1,435
More Information
For more detailed information on what may be available to students continuing into higher education, please contact your Local Education Authority or take a look at Direct Gov
