Finance

Introduction

There are two aspects to the costs of a university education; the university tuition fees and the student’s own living costs.  We will consider both of these (though be aware that there are different arrangements for non UK residents and for those who normally live in Scotland).

 

To find out about the level of fees for a particular university and the financial assistance it provides, look at the course entry profile on the UCAS website. 

Tuition

The actual cost of educating a university student depends on the course, but can cost as much as £20,000 a year. Currently, the government pays the majority of this, but students must pay a contribution which will normally be £3070 per year (in 2007), though some universities may charge less.

 

This contribution will accumulate as a loan, which will be repaid after graduation, in instalments.  Repayments will start when graduates earn over £15000 per year.  The loan is interest free but it increases at the rate of inflation.

 

There are bursaries available for low income families, with help up to £2765 per year.  In addition to this, some universities will offer further financial help up to £300 per year, so that higher education can become free for those whose families are on low incomes.

 

No student has to pay tuition fees for more than four years. In addition, you may find your fees greatly reduced if you go abroad for a year on a sandwich course (for that year), and students on Erasmus programmes abroad pay no fees.

 

There are special arrangements for those who are studying some health related courses, including Nursing, Midwifery, Chiropody, Dietetics, Occupational Therapy, Physiotherapy, Radiography, and Speech Therapy.  The NHS will pay the university fees for these courses.  The fee code on the UCAS form for those who are applying for these courses is 05.  There are also special arrangements for help with living costs – see below.

EU students

If you have been living in the EU (outside the UK) for three years before going to university, you will be charged the same tuition fees as UK students. Apply for the student support form from the DfES (01325 391199 or from their website – www.dfee.gov.uk/studentsupport). However, you will not be eligible for a student loan, and must meet all your own living costs.

 

The regulations are quite strict. For example, you cannot claim that living in a boarding house counts as a UK residential qualification - it doesn't. Any queries you have should be addressed to the DfES as above.

Overseas students

If you live outside the EU you are not entitled to any government support at all, whatever your nationality. You will have to pay the full tuition fees and your own living costs. However, it may be worth contacting organisations such as the British Council – www.britishcouncil.org or UKCISA – www.ukcosa.org.uk to see if any help is available. 

Scottish Students

If you are resident in Scotland there are different arrangements but the details are not clear at the time of writing.

Student Loans

All students can apply for a loan to help with their living costs.

The maximum amounts for 2007/8 are:

 

            Students in London                 £6315 p.a.

            Students outside London        £4510 p.a.

            Students living at home           £3495 p.a.

 

All students are entitled to 75% of the maximum loan, but the remaining 25% is subject to a means test and the amount you get will depend on your family’s income.  (Note that those who parents are separated will only have the income of the parent with whom they normally live assessed.)

The loan will increase at a rate that is linked to inflation.  3.2% is the rate that has been suggested for this year.  Repayments start when graduates earn over £15000 per year.

Maintenance grants

There are now non-repayable maintenance grants that are intended to help with living costs and which are available for students from low income families.  The maximum, for families whose income is £15000 per year, will be £2765.  Smaller amounts are available for those whose incomes are below £33000.  The grants will be paid in termly instalments.

 

In addition to this, universities may offer an additional bursary.  The best place to look for information is in the Entry Profile on the subject entry on the UCAS website.

How much does it all cost?

It is unlikely that even a full loan will cover all your expenses. You will be surprised how quickly you get through the money, so it is worth while doing some sums in advance.

 

Your biggest outgoing (if you don't have a car) will be your rent, especially in London, where rents tend to be much higher. If you rent a house with other students the amount you pay clearly depends on the area you live in and the type of house, but is typically £2600 pa outside London. You will usually have to pay for a full year. A place in Hall with catering included will cost nearly as much. However, if you rent a house, you must also add on the costs of gas and electricity, water, insurance, food, laundry and household goods. Even in Hall, you will still have to budget for lunches and possibly weekend meals.

 

Other things to allow for are travel (both to and from home, and also to and from university), books and equipment, entertainment and leisure. Overall, you could well be looking at £7000 pa. outside London and up to £8500 in London.

 

There is an excellent website – www.universityadvice.co.uk - which has articles on the true cost of higher education and which gives up-to-date information on changes to university fees.

 

Other sites to look at are:

www.studentsupportdirect.co.uk

www.slc.co.uk

It’s not hard to see that going to university will be expensive.  You could end up with tuition fee and student loans of up to £7500 per year outside London and over £9000 per year in London.  And this will not meet the full cost of being a student.

 

So what can you do?

Get a job

Some 90% of students now work to help pay the bills. You can get vacation work, but remember that you will be competing with all other students in the area. If you are not fortunate enough to have a source of employment through your own contacts, get yourself on the books of a couple of employment agencies, and keep in regular touch with them. Be willing, available and reliable, and they will give you plenty of work, but it will not be well paid.

 

Large numbers of students also work in term time, although some universities do not allow this, especially Oxford and Cambridge, whose terms are very short and more intense. Those that do recommend a maximum of 10 - 15 hours a week before work seriously erodes your study time. The most popular and flexible jobs go fast - get in early, and be prepared to work before it becomes a financial necessity.

Application for Student Support

Student support consists of two parts: help with the tuition fees and the student loan, which is to help with the living costs.

 

The school will supply you with the application form or you can obtain one from your Local Education Authority or LEA.  The deadlines for submission of the forms is 27th April if you are making a non means-tested application and 29th June for one that is being means-tested (even if you don't know to which university you will be going), especially if you want to receive a loan cheque by the start of the university year.  You can also apply on-line at www.direct.gov.uk/studentfinance

 

You must apply for help with the tuition fees, otherwise you may find yourselves having to pay the full fee – up to £20000 per year!  You can opt either to do this without means testing, so that you will have to pay the full £3000, or for your family income to be means tested, which may result in some financial help with the fees.

 

You may then apply for a student loan, using the form you will have been sent. This application is sent to the Student Loan Company. (You can also apply later in the academic year - read the details carefully).

 

Make sure you take your statement of eligibility and financial assessment to university with you and hand it in at the start of your course. You will probably have to show your financial assessment to claim your loan cheque as well.

There are bursaries available for students of a range of health related courses.  These are usually means tested. See Mr Worthington for more information.

The Cornwall LEA Student Services website is http://www.cornwall.gov.uk/index.cfm?articleid=453