Financing Higher Education

Financing Higher Education. An overview of the outgoings and income support available

Chris Fuller 23 October 2008

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Student Finance Direct England

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Overview of Finances

£Student finances can be sorted into two

categories:OUTGOINGS

•Tuition Fees

•Accommodation

•Living costs

•Resources

INCOME

•Fees Loan

•Student Loan

•Maintenance Grant

•Bursaries

•Scholarships

•Wages

•Parental support

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Tuition Fees

Up to £3,225 per year*

• UK and EU students

• Does not have to be paid prior to study

• All students can apply for a Tuition Fee Loan

* Some courses are sponsored

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Tuition Fee Loan• Non-Means Tested

• Paid directly to the University

• Low interest rate, set at rate of inflation

• Repayable after graduation and when earning at least £15,000

• 9% repayment of your annual income

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£OUTGOINGS

•Tuition Fees

•Accommodation

•Living costs

•Resources

INCOME

•Fees Loan

•Maintenance Loan


•Bursaries

•Scholarships

•Wages

•Parental support

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Accommodation

The second biggest expense at university is likely to be the rent for student accommodation.

Exactly how much this costs depends upon:

•Choice of university

•Where it is

•What facilities are chosen

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Typical Accommodation CostsAverage UK rent for university

owned accommodation = £81 per week

£3159 per year (bills included)Average UK rent for privately

owned accommodation = £60 per week

£2340 per year (bills not included)

*Figures from NUS and Accommodation for Students

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Typical Accommodation Costs

*Figures from NUS and Accommodation for Students

Scotland = £73 pwEdinburgh = £ 68 St. Andrews = £82

North East= £40 pwSunderland = £44 Durham = £67

London = £102 pw

South East= £72 pwSouthampton = £62 Brighton =

£72

North = £58 pwLiverpool = £50 Leeds = £62

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Maintenance Grants – non repayable

£2,906Receive full grant

Income up to £25,000:

No maintenance grant payable

Income over £61,062:

Receive some grant

Income between £25,001 and £34,459:£2,824 to

£1,292

n/a

Income between £34,459 and £60,032:

Receive some grant

£1,292 to

£50

* Exact figures are awaiting Parliamentary approval (Jan 2009)

REDUCED TO £50,020 (29 October 2008)

X

X£50,020

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Maintenance LoanAn additional loan to help with living costs

•Available to home students

•Paid into student’s bank account in three instalmentsMaximum 2009/10 loan rates

London Parental home

Elsewhere

£6,475* £3,673 £4,745

How much you can borrow depends upon:

•How much Maintenance Grant you receive

•Assessed household income (25% income assessed)

Maintenance Loan

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London Parental Elsewherehome

£4,982 £2,755 £3,558

For students whose parental income is high and who are not therefore entitled to receive a Maintenance GRANT

the maintenance LOAN to which they are entitled is 75% of the maximum loan as follows:

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Maintenance Grants and Loans…

The Maintenance Grant is not designed to increase the amount of money available to students, but to decrease the amount

they need to borrow in the form of a Maintenance Loan

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Maintenance Loan & GrantHousehold Income

Maintenance

Grant(non-

repayable)

Maximum Maintenance

Loan ‘Elsewhere’ rate

Up to £25,000 £2,906 £3,453

£30,000 £2,053 £3,453

£34,459 £1,292 £3,453

£40,000 £1,023 £3,722

£50,000 £538 ?? £4,207

£60,032 £50 ?? £4,695

£61,062 £0 £4,745(*)

£65,000 £0 £4,321

£70,000 £0 £3,781

£72,057 £0 £3,559(+)

Total

£ 6,359

£ 5,506

£ 4,745

£ 4,745

£ 4,745

£ 4,745

£ 4,745

£ 4,321

£3,781

£3,559lower rates of maintenance loan are paid in final year

Plus Tuition Fee Loan of up to £3,225

X ?£50,020

X ?£50,021

We are not sure whether there will be slight changes to the rest of the figures although it seems from the statement by the Secretary of State that only the top threshold will be changed and all other figures will remain constant. John Guy, 30 October 2008

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£OUTGOINGS

•Tuition Fees

•Accommodation

•Living costs

•Resources

INCOME

•Fees Loan

•Maintenance Loan


•Bursaries

•Scholarships

•Wages

•Parental support

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BursariesAll HEIs charging full tuition fees (£3,225) and all

students entitled to the full Maintenance Grant (£2,906) will get a bursary of at least £310.

• Non-repayable sum

• In reality, a lot more is available

• Different Universities have different arrangements for the payment of bursaries

• For more information about bursaries across the UK please see http://bursarymap.direct.gov.uk/

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UK Bursary Scheme

UoS own non-repayable bursary scheme

– Household income below £25,000 or less = £1,000 bursary

– Household income £25,001 - £35,000 = £500 bursary

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Hampshire and Isle of Wight Bursary - £1,000– A new, full-time UK undergraduate student

– Living in or studying at a sixth form or further education college with a Hampshire/Isle of Wight postcode

– A UK resident (excluding the Channel Islands and the Isle of Man)

– The first in your family to enter higher education (excluding brothers and/or sisters)

– Living in a household with a total income of less than £35,000

– Not already receiving an NHS bursary

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NHS Bursaries

• Some healthcare courses do not carry fees and have large NHS bursaries available.

• Over £7,000 available in some areas

• Contact the Student Grants Unit of NHS for more details on 01253 856123

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Scholarships

Each University offers different rewards in the form of Scholarships.

For example, The University of Southampton offers over £1 million to the most talented students in all subject areas.

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Repayment in real terms

Average Graduate salary = £20,000

Monthly repayment = £37.50

• 10-15 years to repay

• Graduates can take up to 5 years worth of loan breaks

• Interest linked to inflation

• After 25 years, all debt is wiped clean

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Summary• All students can take a full tuition fee loan

• Tuition Fee Loan and Maintenance Loan are the only sums to be repaid

• Loans only repaid after graduation and in employment earning at least £15,000

• Grants, bursaries and scholarships are non-repayable

Aimee EllisStudent Finance Outreach [email protected]: 023 8059 9670

Documents

Financing Higher Education