Bankrolling your degree

With the introduction of tuition fees - currently pounds 1,025 a year - and the recent abolition of maintenance grants, you need to undertake some financial planning to make it through your course.

With the introduction of tuition fees - currently pounds 1,025 a year - and the recent abolition of maintenance grants, you need to undertake some financial planning to make it through your course.

First it's worth knowing you may not have to pay all or any of your fees - generally anyone with parents earning less than pounds 23,000 should have their fees paid by their LEA. Even so, you're unlikely to manage without a loan. In 1998, some pounds 941m was paid out under the Student Loans Scheme to over 600,000 students.

You apply for a student loan through your LEA. You should qualify if you're a UK student undertaking a full-time first degree or Diploma of Higher Education. To compensate for the abolished maintenance grant, the loan has been greatly increased; currently you will receive up to pounds 4,480 if you are living away from home and studying in London, pounds 3,635 if you're studying elsewhere, and pounds 2,875 if you live at home.

A quarter of the loan will be means-tested against your family income. You won't have to repay anything until after you graduate, and then only if your income is over pounds 10,000. The repayment rate will be linked to your earnings, with no time limit. It is deducted from your salary and you pay back the same amount in real terms.

But as a Students' Money Matters survey found, the loan is not enough for the 77 per cent of students who also have an overdraft. In general, however, banks are not the cheapest way to fund long-term borrowing, although in the shorter term most offer students an interest free overdraft of pounds 400-pounds 1,500 until your loan cheque arrives.

There are also a number of special access and hardship funds you can try if you get into real difficulties, including the new pounds 250 hardship loan which you can apply for through your university and repay through the student loan scheme. The government also allocates access funds, designed to help students whose backs are really up against the financial wall.

The golden rule if you have money problems is to talk to someone. Every institution will have an adviser or student welfare centre to offer support.

Student Loan Scheme Helpline: 0800 405010

News
people
News
Amazon's drones were unveiled last year.
business
Arts and Entertainment
Russell Tovey, Myanna Buring and Julian Rhind Tutt star in Banished
tvReview: The latest episode was a smidgen less depressing... but it’s hardly a bonza beach party
Life and Style
Worth shelling out for: Atlantic lobsters are especially meaty
food + drink
News
i100
Sport
Gareth Bale
footballPaul Scholes on how Real Madrid's Welsh winger would be a perfect fit at Old Trafford if he leaves Spain
Arts and Entertainment
Lily James in ‘Cinderella’
film
Finacial products from our partners
Property search
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Claims Administrator

    £16000 - £18000 per annum: Recruitment Genius: A position has arisen within th...

    Ashdown Group: Development Manager - Rickmansworth - £55k +15% bonus

    £50000 - £63000 per annum + excellent benefits : Ashdown Group: IT Manager / D...

    Recruitment Genius: Security Officer

    £16500 per annum: Recruitment Genius: Applicants must hold a valid SIA Door Su...

    Ashdown Group: Business Analyst - City, London

    £50000 per annum: Ashdown Group: Business Analyst - Financial Services - The C...

    Day In a Page

    The saffron censorship that governs India: Why national pride and religious sentiment trump freedom of expression

    The saffron censorship that governs India

    Zareer Masani reveals why national pride and religious sentiment trump freedom of expression
    Prince Charles' 'black spider' letters to be published 'within weeks'

    Prince Charles' 'black spider' letters to be published 'within weeks'

    Supreme Court rules Dominic Grieve's ministerial veto was invalid
    Distressed Zayn Malik fans are cutting themselves - how did fandom get so dark?

    How did fandom get so dark?

    Grief over Zayn Malik's exit from One Direction seemed amusing until stories of mass 'cutting' emerged. Experts tell Gillian Orr the distress is real, and the girls need support
    The galaxy collisions that shed light on unseen parallel Universe

    The cosmic collisions that have shed light on unseen parallel Universe

    Dark matter study gives scientists insight into mystery of space
    The Swedes are adding a gender-neutral pronoun to their dictionary

    Swedes introduce gender-neutral pronoun

    Why, asks Simon Usborne, must English still struggle awkwardly with the likes of 's/he' and 'they'?
    Disney's mega money-making formula: 'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan

    Disney's mega money-making formula

    'Human' remakes of cartoon classics are part of a lucrative, long-term creative plan
    Lobster has gone mainstream with supermarket bargains for £10 or less - but is it any good?

    Lobster has gone mainstream

    Anthea Gerrie, raised on meaty specimens from the waters around Maine, reveals how to cook up an affordable feast
    Easter 2015: 14 best decorations

    14 best Easter decorations

    Get into the Easter spirit with our pick of accessories, ornaments and tableware
    Paul Scholes column: Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season

    Paul Scholes column

    Gareth Bale would be a perfect fit at Manchester United and could turn them into serious title contenders next season
    Inside the Kansas greenhouses where Monsanto is 'playing God' with the future of the planet

    The future of GM

    The greenhouses where Monsanto 'plays God' with the future of the planet
    Britain's mild winters could be numbered: why global warming is leaving UK chillier

    Britain's mild winters could be numbered

    Gulf Stream is slowing down faster than ever, scientists say
    Government gives £250,000 to Independent appeal

    Government gives £250,000 to Independent appeal

    Donation brings total raised by Homeless Veterans campaign to at least £1.25m
    Oh dear, the most borrowed book at Bank of England library doesn't inspire confidence

    The most borrowed book at Bank of England library? Oh dear

    The book's fifth edition is used for Edexcel exams
    Cowslips vs honeysuckle: The hunt for the UK’s favourite wildflower

    Cowslips vs honeysuckle

    It's the hunt for UK’s favourite wildflower
    Child abuse scandal: Did a botched blackmail attempt by South African intelligence help Cyril Smith escape justice?

    Did a botched blackmail attempt help Cyril Smith escape justice?

    A fresh twist reveals the Liberal MP was targeted by the notorious South African intelligence agency Boss