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 (prices correct as of Feb 2020) .
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 £4,395
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 £9,580 per year £10,920 - £13,364
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 is it for?
A loan sounds scary. Do I really need one?
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?
How much do I get?
Here is the maximum tuition fees you can apply for each year, depending on where you are based in the UK and where you plan on studying.
England
Scotland
Wales
Northern Ireland
This will cover the cost of part time courses in Northern Ireland but students may need to cover the rest of the fee amount if they chose to study part time elsewhere in the UK.
When do I get it?
When do I pay it back?
England & Wales
So, if you earn £31,000 per year, for example, or £2,583 per month before tax, you'll only pay £39.60 per month in loan repayments. That's because you are earning £440 more per month than the threshold, and 9% of £440 is £39.60.
If you become unemployed or start earning less than the threshold again, you will stop making loan repayments.
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.
Scotland & Northern Ireland
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?
Note that applications can take up to six weeks to be processed, which is why it’s best to apply as early as possible. You don’t have to have chosen which university you want to go to before you apply.
How do I apply? Student Finance England Scotland Wales Northern Ireland . You'll need to provide proof of your identity (either your passport or your birth certificate) and details of your household income (so how much your mum and/or dad earn) and provide of your identity.
You’ll also need to include your course start date and end date (if known – otherwise you can update later), bank account details and National Insurance Number. If you don’t know your NI number, you can find it on the HMRC website
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?
How much do I get?
England
Full-time student 2020/2021 Academic year
Living at home Up to £7,747
Living away from home, outside London Up to £9,203
Living away from home, in London Up to £12,010
You spend a year of a UK course studying abroad Up to £10,539
Source: Gov.uk
This maintenance loan is paid directly into your bank account in three instalments per year = one at the start of each term. You have to pay this maintenance loan back once you are earning above a certain amount.
Scotland Student Awards Agency Scotland
Wales
The maintenance you get is split into two parts: a Maintenance Loan , which is repayable and a Maintenance Grant, which isn’t. How much of your overall maintenance is repayable or not is worked out using your parent’s household income. You can find more information on what you could get on the Student Finance Wales website
Northern Ireland
When do I get it?
When do I pay it back?
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.
For more information on student loans and maintenance loans, check out this great video from Money Saving Expert
VIDEO
Student Grants Who are they for?
What grants are 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 disability, long-term mental illness or a specific learning difficulty (like dyslexia).
There are also grants and bursaries available for medical students
You can find out more details on what is available and if you are eligible on your Government's Student Finance websites.
How much do I get?
When do I get it?
When do I pay it back:
Bursaries and Scholarships
You can check if you chosen university offers any scholarships via their profile pages. Search for your uni here.
Student Bank Accounts What is a student bank account?
Why do I need one?
“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, former Head of Communications 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?
- 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?
How do I choose which bank to go with?
Managing Your Money 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.
Below we’ve compiled some basic money management tips to help you get the most out of your pounds…
Budget, budget, budget
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
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 Totum card
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
NEXT:
- Common Myths About Student Loans
- What To Do If You Run Out of Money at University
** All data correct as at Feb 2020. For latest loan and tuition fee amounts, please keep checking your relevant Government finance website.
