Going to university is a dream for any student. However, it's also a very expensive dream. Currently universities in England can charge up to a massive £9,250 per year for an undergraduate course. Rates differ for Wales, Scotland and Northern Ireland. Here's how it works out:
Home country Planning to study in...
England Scotland Wales** Northern Ireland
England £9,250 £9,250 £9,000 £9,250
Scotland £9,250 £1,820* £9,000 £9,250
Wales £9,250 £9,250 £9,000 £9,250
Northern Ireland £9,250 £9,250 £9,000 £4,160
* If you’re a Scottish student studying in Scotland, the Student Awards Agency for Scotland (SAAS) will cover the cost of your fees. So in essence it's free.
** If you’re lucky enough to have been born in Wales then you only pay a maximum of £3,865 a year towards tuition fees, wherever you study in the UK, because the Welsh government pays the rest in the form of a grant.
Over the course of a normal 3-year degree that's a whopping £27,750 you could end up paying - and that's just for tuition...
You'll also have to factor in accommodation and all your living costs too. Student halls can range from £80 to £150 depending on where you are living, plus you have to factor in the cost of food, travel, socialising, clothes, books, oh the list is endless…
The University of Manchester estimates living costs for students at around £9,255 per year over £20,000 .
Now if that's enough to make you start hyperventilating, don't panic! As there are plenty of sources of finance to help you cover the cost of everything. And we've got it all laid out for you right here.
As well as explaining the basics of student loans and bank accounts, this guide also aims to give some practical hints and tips about money management, with advice from experts and university students.
Skip to:
1. Student Loan
2. Maintenance Loan
3. Student grants
4. Bursaries and Scholarships
5. Student bank accounts
6. Managing your money
Student Loan
What it’s for?
It pays for the tuition fees charged by your university.
A loan sounds scary. Do I really need one?
Taking out a student loan is very different to taking out a payday loan from Wonga. You aren't going to have bailiffs banging on your door, taking your TV as repayment - so no need to worry.
In fact, the best way to think about student loans is to think of it like a form of tax. It doesn’t affect your credit score and it’s only when you’re earning over a certain amount (see below) that you’ll start paying it back in affordable monthly chunks.
Who do I get it from?
You can apply for these loans through a government body known as Student Finance England (or Wales, Scotland or Northern Ireland). Any loan you receive will, confusingly, be paid out by an organisation known as the Student Loans Company.
How much do I get?
Up to £9,250 a year in England. See table above for details.
When do I get it?
You’ll never see this money, as the student finance company will pay it directly to the university.
When do I pay it back?
Once you graduate you have to be earning over £25,000 a year in order to start paying back your loan. The government will take 9% of anything you earn over £25k from your salary. See the table below from Student Finance
You are expected to pay the full amount of your loan back to the government, plus interest. However, if after 30 years you haven’t paid it all back, your loan debt is written off.
Top tip: Make sure you find out from your university how much their tuition fees are before you apply for student finance – that way you won’t run the risk of not being awarded enough.
When do you need to apply by?
You don’t have to have chosen which university you want to go to before you apply, which is why it’s best to apply as early as possible. If you are intending to start a course beginning in September 2019 you need to apply by 24th May 2019.
How do I apply?
You make you application online at https://www.gov.uk/apply-online-for-student-finance . You'll need to provide detials of your household income (so how much your mum and/or dad earn) and provide of your identity.
Your parents will need to confirm that your household income details are correct. They'll be sent an email after you've begun you application with a link to submit their details.
Maintenance Loan
What it’s for?
It is designed to help with the cost of living at university. It’s there to help pay for your rent, food, books and equipment, and other university living essentials.
How much do I get?
Unlike tuition fees, the Student Loans Company decides how much maintenance loan to pay to you. That’s because how much money you receive is based on a number of factors including where you study, where you’re living and how your course is structured (see the table below for a breakdown).
Source: Gov.uk
When do I get it?
The maintenance loan is paid directly into your bank account in three instalments over the academic year.
When do I pay it back?
You pay your maintenance loan back at the same time and under the same terms as your tuition fee loan.
Top tip: Take the time to explain to your parents what information you need about them in order to successfully apply for the right amount.
Student Grants
Who are they for?
To help students whose parents earn less than a certain amount.
What grants are available?
There are many grants available. For example, if you are a student with dependent children you can get a grant to help with living costs. And there's extra support if you have a disabilty, long-term mental illness or a specific learning difficutly (like dyslexia).
There are also grants and bursaries available for medical students (through the NHS), teacher and social work students.
You can find out more details on what is available and if you are eligible on the UK Government's website How much do I get?
How much you get varies as it is dependent on income, personal circumstances and also what you plan to study. These grants are paid on top of you other student fee and maintenance loans.When do I get it?
Like the maintenance loan, your maintenance grants are paid directly into your bank account.When do I pay it back:
Because this is called a grant rather than a loan, you won’t have to pay it back.
Busaries and Scholarships
Most universities offer also bursaries and scholarships available to help fund your way through university.
For example, Anglia Ruskin University University of Birmingham
You can check if you chosen univeristy offers any scholarships via their profile pages. Search for your uni here.
Student Bank Accounts
What is a student bank account?
The top high street banks offer special accounts that are only available to students. They typically have what is known as an “arranged overdraft facility”, which means that you will have access to up to £3,000, without any sneaky interest charges.
Why do I need one?
Funding your time at university can be hard, and often your maintenance loan isn’t enough to cover the costs of living, especially in areas like London. A student account with an interest-free overdraft facility is a useful addition to university funding.
“Whilst we would not encourage students to get into debt with an overdraft and it should not form part of their budget, interest free overdrafts can be useful to cover unexpected expenditure,” says Peter Dunn, Head of Communications at the University of Warwick
But remember, always spend within your means. Jess Hawker, Money Specialist at Leeds University “A lot of students also find taking an interest free overdraft as a useful way to manage cash flow. This can be very effective but it is important to remember that you will have to pay it back"
Nat Burnett, a student at the University of Warwick “A major mistake people often make early on is relying on their bank account overdraft as a safety net, when in reality it's anything but... Know exactly what key terms and conditions you have signed up for – otherwise you might easily find that extra little indulgence brings a flood of bank fees you could and should have avoided.”
How do I apply for a student account?
To open a student account, you will need to be over 18. Most high street banks will ask you for the following things when applying for a student current account:
- Proof of ID (passport or driving license or birth certificate)
This is not an exhaustive list, so be sure to check with the bank you’re intending to open an account with before you begin the application process.
When’s the best time to apply for a student overdraft?
It’s best to get your student account up and running before you apply for your student loan – that’s because your maintenance loan and any grants, bursaries or scholarships you’re entitled to will be paid directly into the account you have listed on your student loan application form.
How do I choose which bank to go with?
While there are so many websites and articles telling you which student account you should apply for, the decision ultimately comes down to you and your personal preferences. Many students tend to open an account with the bank their family use, but that doesn’t necessarily mean you’ll be getting the best deal.
Managing Your money
Financial independence, in any form, is exciting. But it also comes at a time when there are loads of other things you need to be thinking about. “Students often don’t know where to start and are intimidated by managing their money,” says Jess Hawker, Money Specialist at Leeds University Union.
That’s why many universities offer money management advice to help you get your finances straight, and make sure you have enough money to last you through the year.
“At Leeds University Union we have tips and advice online says Jess.
Meanwhile, the University of Warwick provide online budgeting advice and tips budget calculator
Below we’ve compiled some basic money management tips to help you get the most out of your pounds…
Budget, budget, budget
The first challenge is dealing with the whopping great chunk of loan money that will land in your account in September. While it may be more money than you’ve ever seen in your life, in the grand scheme of things it’s not that much, and you’ll have to make it stretch out over the term.
“It’s important that students are aware of the competing demands on this funding, including their rent, bills, travel etc. It is very easy for them to spend freely in the early weeks of the year only to find themselves in financial difficulty as the term progresses,” says Emma Stephenson, Head of Widening Participation and UK Student Recruitment at the University of Exeter.
The first thing student Dani does is take away the cost of his rent and see how much he is left with: “Then I try and work out what I need for basic necessities like food, clothes and maybe some stuff for uni.” He adds, “usually, I work out an average of what I can have a month and break it down into weeks.”
Typically, that means Dani budgets between £20-30 a week. “Sometimes, if I have money saved over from the previous week, I pass it on to the next and can spend a little more.”
Work it
It might be the last thing you want to read right now, but any kind of paid work is worth doing either while you’re at university or in the holidays.
Working will not only give your bank account a much needed boost, but also make your CV a lot more impressive to future employers.
Most universities have a dedicated job service to help students find employment during term time.
However, it can sometimes be tough to balance paid work with study commitment. Being organised is the key. Dani says: “Last year I started keeping a diary, which I’ve never used before in my life! Yet sticking to that rigorously has meant I have been able to divide up my time between work and study, without losing track of the bigger picture.”
Savvy shopper
“When it comes to shopping, I’d say shop cheap!” says Dani. “I’m always on the look-out for what’s on offer and not constantly spoiling myself with luxuries. ”
Bulk-buying food that’s on offer and freezing it is an excellent way to make sure you’re always stocked up with food, for example.
When it comes to shopping on the high street, or even going out for a meal, there’s no shortage of student offers available. Your student card will automatically qualify you for discounts on certain items, while an NUS Extra card will give you access to more discounts. There are also plenty of voucher websites you can use to get a good discount.
If you’re a home bunny, then remember to book your rail tickets a week or two in advance to avoid paying through the nose, or even try out the Megabus.
While these are just a few hints and tips to get you started, there are endless ways to make your money go further. You can read more about funding your studies in the Whatuni Student Advice section
Keely Lockhart is a business and finance journalist. Follow her on Twitter @keelylockhart
