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How to afford to go to university

7/ 7/2008

OUR problem solver answers some of your questions on meeting the costs of higher education.

Paying tuition fees

Q I want to go to university but am worried I might not be able to pay the tuition fees. What are my options?

A New entrants to university for 2008-09 must pay a yearly fee of up to £3,145, depending on the university. You can apply for a student loan for tuition fees to cover this. The loan is paid in three instalments at the beginning of each term by Student Finance Direct to your university.

Adding up the interest

Q IS interest charged on the loan, and when do I have to repay it?

A YOU do pay interest on the loan, but it's pegged to the rate of inflation, so the amount you repay should be equal in value to the amount you borrowed.

You are required to repay the loan once you're earning more than £15,000 a year (equivalent to £1,250 a month or £288 a week), at a rate of nine per cent of total earnings. You can increase your repayments to clear the loan more quickly.

The more you earn, the sooner you'll clear the loan, but on a starting salary of £18,000 a year, you'll pay only nine per cent of £3,000 (£18,000 minus £15,000). This works out at around £5.19 a week.

For more information contact Student Finance Direct.

A roof over my head

Q ARE there any loans or grants available to cover my living costs?

A YOU can apply for a separate loan of up to £6,475 a year to cover living costs, depending on where you live while you study and your household income (25 per cent of the loan is income-based).

The loan is paid out in three instalments to your university and is added to your tuition fees loan to be repaid in a similar manner after graduation.

Some students are also eligible to receive a separate (non-repayable) maintenance grant worth up to £2,835 a year. The amount you get depends on household income.

Unlike the tuition fees loan, the maintenance loan may not cover all your living costs. Many students take part-time jobs to cover the shortfall.

The cost of books

Q WHAT about extra funds for study support, such as money for course materials, textbooks or student trips?

A IF you're receiving the full £2,835 maintenance grant and being charged the maximum yearly fee of £3,145, you may be eligible to receive additional non-repayable support of at least £310 a year.

The amount you get, how-ever, will depend on where you're studying, and you may be eligible to receive other funds, so check with the university first.

A special support grant is also available for students who receive income support or means-tested benefits, such as housing benefit.

Part-time students may also be eligible for a non-repayable fee grant of up to £1,180 and a further grant of up to £255 to help with the cost of things like books and travel.

For more information, contact Student Finance Direct.

Which bank account?

Q I don't have a bank account and see that there are ones aimed specifically at students. What should I look for in a student account?

A IF you envisage needing to borrow money regularly, look for student accounts that offer a good overdraft facility and a low interest rate on overdrafts above the interest-free limit.

The Scottish system

Q HOW does the system differ for students in Scotland?

A IN the Scottish education system, domiciled students (those who have been living in Scotland for the three years up to the August in which they go to university) do not have to pay university tuition fees if they study at a Scottish university.

The fees are paid directly to the university by the Student Awards Agency for Scotland. Student loans in Scotland mainly cover living costs and study support.

For further information on this and the student funds available in Scotland, contact the Student Awards Agency for Scotland ( www.saas.gov.uk ).