Student Finance

Students can apply for both Tuition Fee support and Maintenance Loans through Student Finance. These assist with covering the cost of the course and the Maintenance Loan can help with other university associated expenses. 

Everybody is entitled to the Tuition Fee Loan for their first full-time undergraduate degree, and the loan meets the full cost of the tuition fees of their course so there is no requirement to pay any money upfront. The amount of tuition fee loan they can apply for does not depend on their household income. Students are able to apply before they confirm their place with their chosen university or college. 

Fees for 2022-23 academic year for a full-time student are up to £9,250 per year. The university or college sets the tuition fee, and the loan is paid directly to the university or college. 

Tuition fees in subsequent years may be subject to small increases in line with inflation. 

The Maintenance Loan is there to support with living costs associated with going to university. This could cover rent, travel, food, bills, social activities or course resources. 

The loan is subject to you giving your household income details and the money is paid directly into the student’s bank account at the start of each term. Household income includes any of the following; 

• Parents’ income, if your child is under 25, lives with you or depends on you financially. 
• The combined income of one of the applicant’s parents and their partner, if the applicant is under 25 and lives with or depends on them financially. 
• Partners income, if the applicant is over 25 and lives with a partner. 
• Income they receive from their own savings, investments or property, for example dividends or rent. 

By visiting www.gov.uk/student-finance-calculator you can approximate how much maintenance loan your child may be eligible for.  

Interest starts being added to the loan from when your child receives their first payment. Whilst they are studying, interest is 5.6%. This is made up of the Retail Price Index (RPI) plus 3%. RPI is currently set at 2.6%. This rate applies until the 5 April after they finish or leave their course, or for the first 4 years of their course if they are studying part-time, unless the RPI changes. 

After that, their interest rate depends on their income in the current tax year. 

• If they are self-employed, their income is the total income amount on their self-assessment form. 
• If they are an employee, their income is their taxable pay: Plus any pension contributions. Minus any benefits they get from their employer that are taxed through payroll. 
• If they have more than one job, their interest rate will be based on their combined income from all their jobs. 

A: We would advise checking the Student Finance calculator to clarify if your child is eligible for extra financial support. Specifically, there is assistance available in these forms: 

• Childcare grant – full-time students only. 
• Parents’ Learning Allowance – full-time students only. 
• Adult Dependants’ Grant – full-time students only. 
• If you have a disability, long-term health condition, mental health condition or specific learning difficulty (such as dyslexia) you can apply for the Disabled Students’ Allowance. 

A: There is also support available for students studying Medical, Pre-Registration Healthcare, Social Work and Teacher Training: 

• NHS Bursaries - if studying certain medical or dentistry courses. Visit gov.uk/nhs-bursaries for more information.  
• NHS Pre-Registration Healthcare Courses. Visit nhsbsa.nhs.uk/nhs-learning-support-fund to find out more. 
• Social Work. Visit gov.uk/social-work-bursaries for more information. 
• Extra financial support is available for those studying to become a teacher.  

Your child will need to apply for their Student Finance by going to www.gov.uk/student-finance/apply. Applications open mid – late February and the deadline is late May. Any applications received after the deadline may delay finance being paid to students so it’s always best to apply early. Updates can be made by contacting Student Finance if they change their mind on their course or institution. If the applicant is from Scotland, Wales or Northern Ireland there are different processes in place, links are below for the Student Finance support and applications. 

University loans are not considered as a ‘bad’ debt and will not affect your child’s credit file or their chances of getting a mortgage. A university degree is an investment in their future. If your child takes the Tuition Fee and Maintenance Loan, they will be added together to form one single loan. They will normally receive a statement once they have completed their course stating how much they owe. It is important to remind them that repayments are based on how much they earn, not how much they owe. 

• Repayments are 9% of their income over £26,575. If their salary falls below £26,575 repayments will stop and if they never earn that they won’t pay anything back. 
• Their loans are repayable from the April after graduation or leaving their course and payments are automatically deducted from their salary exactly like Tax and National Insurance.  
• After 30 years whatever is left outstanding is written off! 
• Let us give you an example; Your child’s annual income is £28,800 and they are paid a regular monthly wage. This means that each month their income is £2,400, the monthly threshold is £2,214. Their income is £186 over the threshold meaning they will approximately payback £16 (9% of £186) each month. Which is less than the latest smartphone contract out there! 

The information above is based on undergraduate information from Student Finance England. There are different processes if you live in Scotland, Wales or Northern Ireland. For more information, please visit the following; Scotland - Saas.gov.uk, Wales - Studentfinancewales.co.uk, Northern Ireland - Studentfinanceni.co.uk.