Financing higher education

Student Loans for Tuition Fees

Students living in England can take out this loan at a low rate of interest and for any amount up to the full amount of the tuition fee payable. The loan is not income assessed and is paid directly to the university or college where the student is studying.

Student Loans for Living Costs (also known as the Student Loan for Maintenance)

This covers the basic living costs and is paid directly to student bank accounts. The amount varies according to where the student is living. Every UK student is entitled to 75% of the student loan and the remainder is means tested on household income.

Repaying Student Loans

It is up to the student to repay the Student Loans once they have finished their studies. Both the Student Loan for Living Costs and the Loan for Tuition Fees are combined and repayments are at a rate of 9% of your earnings over £15,000. Repayments are only repayable when students leave university and earn over £15,000 a year. So someone earning £18,000 a year would repay £5.19 per week.

Maintenance Grants

These are income assessed and non-repayable. In 2008, maintenance grants are worth up to £2,835.

• With annual household income under £25,000, students will be eligible for a full grant.
• With annual household income between £25,001 and £60,005, students will be eligible for a partial grant.
• With annual household income in excess of £60,005, no grant is awarded.

Non-repayable bursaries

Your teenager may also be able to get a bursary from their chosen university or college. Exactly what is on offer varies between individual institutions. A bursary is non-repayable and the minimum is £310, but many institutions offer much more. In 2007-08, for students paying the maximum tuition fee and getting the full Maintenance Grant a typical bursary was around £1,000. Institutions may also offer scholarships or sponsorship.

Disabled Students' Allowances (DSAs)

These are for students with a disability, mental health condition or specific learning difficulty. This help is not means tested and does not have to be repaid. The allowance may cover non-medical personal helpers, major items of specialist equipment and other disability related expenditure.

Childcare Grant, Parents' Learning Allowance and Adult Dependants Grant

These are for students with child or adult dependants. This help is income assessed and does not have to be repaid. For more information visit www.direct.gov.uk/studentfinance .

Access to Learning Fund

This is available from universities and colleges to provide help for students who may need extra financial support for their course and to stay in higher education. These payments are usually given as grants, but may also be in the form of a repayable loan.