Financing a young person through university is not as bad as it might seem. There is plenty of finance information on the NTU website and elsewhere to help explain the finance system.
2012 fee changes
The Government is reducing funding contributions for UK students in higher education. Universities must now set their own fees, up to a maximum of £9,000 per year from 1 September 2012. However, no one has to pay for this cost up front, all students are entitled to a tuition fee loan to cover the cost of their fees.
Main costs
- Tuition fees – up to £9,000 per year from 1 September 2012
- Living costs – approximately £7,150
Income and support
Tuition fee loan
- covers the full cost of tuition fees
Living cost loan
- up to £5,500 will be available if you live away from home and study outside London
- up to £7,675 will be available if you live away from home and study in London
- up to £4,375 will be available if you live with your parents
Look at the figures and remember the following:
- Graduates only pay back if they earn over £21,000 per year.
- There is no pressure to pay back loans if the graduate doesn't have a job.
- If the graduate loses their job or they choose to leave it and their salary drops below 21k repayments stop immediately.
- Student loans are paid back in small increments.
- The repayments come out of wages like tax and national insurance.
- Any of the money outstanding after 30 years is written off.
- Having a student loan does not affect your credit rating and is highly unlikely to affect your ability to get a mortgage.
- The most up to date information about interest rates can be found on the Student Loan Repayments website.
- The money a graduate pays back is a tax in all but name and is entirely linked to their earnings. If they don't earn enough money then they won't have to start paying anything back.
Useful links:
