Student Finance got your head in a spin? Let us put you straight. We'll show you where the money is, how it works, how much you can get and how to get your hands on it.
Are Student Loans really all that bad? Actually, what even is a Student Loan? How will it impact your studies and your future? Is it even worth going to university anymore?
The chat surrounding Student Finance has got a bit out of hand. Get to the facts and you'll find it's all quite straightforward, affordable and accessible!
And facts are what this
guide is all about. Yes, Save the Student has campaigned against tuition fees for years, but we're even more passionate about debunking the myths that stop young people following their dreams of going to uni in the UK. 🙂How to use this guide
You don't have to read everything, or try to digest it all in one go:
- Only got a minute? Get the Student Finance essentials in 30 seconds
- Got 5 minutes? That's enough to get answers to the big questions
- Want it all? Keep reading for juicy details about real costs, hidden funding, and the truth about Student Loans.
Read what you can now and bookmark the page to pick it up later, if you're short of time!
What's in this guide?
Student Finance in 30 seconds
Credit: ITV Studios
- Student Finance (funded by the government) allows students from any financial background to go to university.
- The Student Finance package includes a loan for course fees, plus a means-tested Maintenance Loan or Grant to cover living costs.
- UK universities can charge up to £9,250 a year in tuition fees, but you'll pay nothing upfront if you're eligible for Student Finance (most students are).
- You could get extra cash if a health condition, childcare costs or clinical placements leave you out of pocket while studying, or financial support if you're struggling to get by.
- You or your parents may be expected to chip in for maintenance support (i.e. living costs). You'll need to plan for this!
- Student Finance has to be paid back, but don't let that put you off! Student Loan repayments work more like a graduate tax, which is far easier to manage after uni.
- You only make Student Loan repayments once you've left your course AND are earning enough. Repayments vary with your salary, and stop altogether if your income drops too low.
- Controversially, the Student Loan charges up to 5.6% interest each year until you pay it all back.
- But crucially, many loans may be written off anyway before they're fully repaid. If you're not a big earner after uni you may only pay back a fraction of what you borrow from Student Finance.
- For the most part, Student Finance is reserved for UK students, but some exceptions apply.
- Almost all students can get a bite at funding beyond Student Finance, from bursaries and scholarships to charity and corporate cash.
Student Finance FAQs
What is the 'Student Loan'?
Credit: CBS
Student Finance includes a mix of grants (which don't have to be repaid) and loans (which you do pay back). Your Student Loan is all the repayable funding you apply for – that is, the Tuition Fee Loan and/or Maintenance Loan.
Bear in mind that you may have to repay some grants and extra funding as well if you leave your course early: always get advice before dropping out.
How much are tuition fees in the UK?
Most universities charge £9,250 a year for course fees. However, universities in Northern Ireland, Scotland and Wales charge less (or nothing) to students who already live there, are from the Republic of Ireland or are from the EU and started their course in or before the 2020/21 academic year. Unfortunately, international students almost always face higher fees.
The good news is that most students from the UK can apply for Student Finance, scholarships or fee waivers, all of which make it easy to cover tuition costs.
How much Student Finance will you get?
Credit: Yevgen Kravchenko, kamui29, Bell Photography 423 – Shutterstock
The Tuition Fees Loan lets you borrow enough money to pay course fees in full, up to £9,250 a year (or up to £6,000 a year at private unis). How much Maintenance Loan you get for living costs depends on your household income and where you live while studying.
The maximum Maintenance Loan that most can apply for is £9,203 a year, though there's a bit more on offer if you study in London or spend part of your course abroad. Many students will get less than the maximum, so it's important to check for yourself!
Your funding package may also include support for physical or mental health conditions, or cash for parents and carers: payouts for these vary.
Who can get Student Finance?
There are almost as many rules about who can get Student Finance as there are Subway sandwich combos.
At its simplest, you should be eligible for tuition AND maintenance support if you're studying an approved course at a registered uni and haven't previously started a degree or similar course.
You'll also need to be a UK citizen (or have 'settled' status) and have been living here for at least three years before your course start date.
While Irish students, and those from the EU who started their course in or before the 2020/21 academic year, can apply for the Tuition Fees Loan, they won't usually get help paying living costs.
Rules and amounts also vary if you're a part-time student, over 60, at a private uni, or claiming special circumstances such as refugee status. Contact Student Finance to flesh out the extra details for yourself.
What else do students have to pay for?
Tuition fees may hog the headlines, but for most students, the key to surviving at university is planning for living costs.
These include monthly rent, food, transport, textbooks, and anything else you need to stay alive and on top of your studies.
The average student spe
nds £795/month at uni, though there are ways to pay less or find funding.When should you apply for Student Finance?
Credit: Chutima Chaochaiya - Shutterstock
You can start applying for Student Finance the spring before your course starts. You don't need a confirmed place, so get in early to be paid promptly at the start of term. You can apply as late as nine months after starting, but don't wait if you need the money!
Either way, allow time to get your paperwork together, plus at least four to six weeks to hear a decision. It's not as long-winded, but you'll also need to reapply for funding each year of your course.
All the deadlines you need are right here.
What funding is available if you can't get Student Finance?
Universities offer a mix of scholarships, bursaries, fee waivers and hardship (emergency) funds. Some charities, companies, councils and professional bodies also award grants and financial support: it's possible to dig up hidden funding for everything from spiritual or ethical beliefs to what your parents do for a living.
If you can't get – or don't want – Student Finance, make sure your salary, savings, family support or other finance is enough to cover the cost of uni.
Will tuition fees change?
Credit: Atanas Bezov - Shutterstock
Tuition fees have steadily gone up over the last few years, with some students landed with higher fees even after starting a course. Underhanded, yes –
however, if you take the Tuition Fees Loan, price rises won't hurt your future finances.Monthly loan repayments after uni are determined by your salary, not by how much you borrow.
Will bigger loans lead to more student debt?
While Student Finance helps pay for university, it does usually mean you'll graduate owing thousands. But, because of the way repayments work, in reality, many students will only pay back a small part of what they borrow.
Use your predicted graduate salary and monthly repayments to see if the loan is right for you, rather than fixating on what you'll owe. In the meantime, you absolutely do need a plan to deal with everyday debt such as student overdrafts, credit cards and other kinds of borrowing.
Can you afford university?
Only you can decide if university is affordable for you. There's a lot of funding out there, some of it ring-fenced to ensure poorer students aren't left out.
That said, almost everyone finds it easier with extra income or family support, as many struggle to get by on Student Finance alone. However you play it, a money plan is a must!
How to contact Student Finance
To apply for Student Finance or ask how much you'll get, contact the agency where you live (or where your uni is located if you're not from the UK):
England
Phone: 0300 100 0607
Twitter: @SF_England
Website: Student Finance England
Northern Ireland
Phone: 0300 100 0077
Website: Student Finance Northern Ireland
Scotland
Phone: 0300 555 0505
Twitter: @saastweet
Website: Student Awards Agency Scotland
Wales
Phone: 0300 200 4050
Twitter: @SF_Wales
Website: Student Finance Wales
How much does university cost?
:
| Students from | Studying in England | Studying in Scotland | Studying in Wales | Studying in N Ireland |
|---|---|---|---|---|
| England | £9,250 | £9,250 | £9,000 | £9,250 |
| Scotland | £9,250 | Free | £9,000 | £9,250 |
| Wales | £9,250 | £9,250 | £9,000 | £9,250 |
| Northern Ireland | £9,250 | £9,250 | £9,000 | £4,395 |
| Republic of Ireland | £9,250 | Free | £9,000 | £4,395 |
Remember that this is the most they can charge – individual courses may vary. Fees are also likely to be very different for international students (which, as of the 2021/22 academic year, includes students from the EU, excluding Ireland), as there's no official maximum figure. Either way, check the university's website or prospectus for details, or see the UCAS course catalogue.
Thinking about a year abroad? You might pay different fees while you're away – we've got the lowdown on that here.
What do tuition fees pay for?
Tuition fees pay for a lot more than just teaching. They also help cover buildings, services, staff, and hardship funds for struggling students.
While you don't get any say in how much universities charge, it's still worth checking they spend fees in the ways that most benefit you. That could be through more teaching time, a well-stocked library, cutting-edge facilities, career mentoring, or anything else that helps you get a degree or a job after graduating.
Is it worth shopping around for cheaper fees?
As most universities charge the maximum for their country, most students won't see much difference unless studying in Scotland or Northern Ireland is an option.
And, if you're from Scotland, NI or Wales and want to study in England, remember that Student Finance will stretch to help accommodate the higher course fees and living costs (don't worry – borrowing more won't affect how much you repay).
It's definitely in your interest to compare fees if you're not eligible for Student Finance and/or are paying your own way – international students have the most to gain from this.
For most students, comparing local costs like rent, food and transport is the best way to see what's affordable for you: here's how much students spend at each UK university.
Course costs
At up to £9,250 a pop, you'd think tuition fees would see you fully paid up but, unfortunately, they don't. You'll have to confirm extra course costs for yourself with the uni, but generally you're looking at things like books, stationery, lab kit or art materials, field trips, printing and photocopying.
Allow for these when making your budget to avoid nasty surprises later on.
Living costs
Living costs can be a huge pain in the pocket: we're talking rented accommodation, energy bills, transport, socialising, laundry and food shops.
Some of these expenses can be covered by the Maintenance Loan or any bursaries and grants you're entitled to. Chances are, though, that you'll also need back-up from savings, your parents or a part-time job.
How to pay for university
Tuition Fee Loan
Apply to: Student Finance
Eligible full- and part-time students can borrow for the full cost of their course fees, up to £9,250/year (or up to £6,000 a year at private universities). This money isn't means-tested, so household income won't affect how much you get.
The maximum amounts apply to students from across the UK who study in England. This means if you're from Wales and opt to study in England, you'll get enough to cover the higher fees. However, you can't borrow a bit extra on the side with this loan: it's only for course fees and is paid directly to your university.
If you don't take the Tuition Fees Loan, you'll need to make your own arrangements to pay tuition, either in full or in instalments.
In Scotland, note that even if you're eligible for 'free' tuition, you'll still need to apply to Student Finance to ensure you don't get charged.
Living costs
Maintenance Loan
Apply to: Student Finance
The Maintenance Loan pays for day-to-day living expenses like rent, bills, beans and books. Unlike the fees loan, it's paid directly to your bank account once a term (monthly in Scotland) and you can spend it on anything you like – which is why you need to be clever about it.
The Maintenance Loan is partly means-tested. Everyone eligible can get some of it regardless of their financial situation, but to get the full allowance, you'll need to declare household income. For most students, that's how much their parents earn.
These are the maximum amounts you can apply for this year in England. Don't forget this is what you could apply for, not what you'll definitely get!
Maximum Maintenance Loan for English students 2020/21
| Household Income | Living at home | Away from home (outside London) | Away from home (London) |
|---|---|---|---|
| <£25,000 | £7,747 | £9,203 | £12,010 |
| £30,000 | £7,095 | £8,544 | £11,340 |
| £35,000 | £6,442 | £7,884 | £10,670 |
| £40,000 | £5,789 | £7,225 | £10,000 |
| £45,000 | £5,137 | £6,565 | £9,330 |
| £50,000 | £4,484 | £5,905 | £8,659 |
| £55,000 | £3,831 | £5,246 | £7,989 |
| £58,222 | £3,410 | £4,820 | £7,557 |
| £60,000 | £3,410 | £4,586 | £7,319 |
| £62,249 | £3,410 | £4,289 | £7,017 |
| £65,000 | £3,410 | £4,289 | £6,649 |
| £69,977 | £3,410 | £4,289 | £5,981 |
Note that the higher your household income, the less funding you can apply for: the government assumes you or your parents will plug the gap!
Students who live at home with their parent with a household income of around £58,222 or more will receive a max amount of £3,410.
Students living away from home and outside of London with a household income of £62,249 or more will receive a max amount of £4,289.
And, students living away from home and in London with a household income of £69,977 or more will receive a max amount of £5,981.
NOTE: The numbers are different if you come from, or are studying in, other parts of the UK, or if you started uni before 2016. You'll also get slightly less money in your final year, because you won't be a student over the summer. Gulp.
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