Paying for Higher Education

In 2008-09 students will be liable to pay tuition fees of up to £3,145. The amount could vary between institutions and between courses. There are different fee arrangements for students studying in Wales, Scotland or Northern Ireland, so if your teenager wants to study outside England they will need to find out what the fees are.

Loans for tuition fees

Students living in England can take out a low interest Student Loan for Fees for any amount up to the full amount of the tuition fee payable. The money is paid direct to the university or college where they are studying. Student loans only become repayable when students leave university and are earning more than £15,000 a year. See Paying back student loans to the left of this page.

The Student Loan for Maintenance

The Student Loan for Maintenance (sometimes known as a loan for living costs) can help with basic living costs such as accommodation, food and clothes. In 2008-09, students living away from home and studying in London can borrow a maximum of £6,475, whilst students living away from home and studying outside London or living at home (wherever they are studying) can borrow maximums of £4,625 and £3,580 respectively.

Student loans only become repayable when students leave university and are earning more than £15,000 a year. See Paying back student loans to the left of this page.

Maintenance Grants

Depending on their household income, students may be able to get non-repayable Maintenance Grants of up to £2,835.

• Students with a household income of less than £18,360 will get a full grant.
• Students with a household income between £18,361 and £39,305 will get a partial grant.
• Students with a household income of over £39,305 will not receive a grant.

Special Support Grant

Students can get a Special Support Grant if they are eligible for benefits such as income support or housing benefit. The grant covers extra course-related costs such as books, equipment and childcare and does not affect benefit payments. Students who are entitled to a Special Support Grant will not receive a Maintenance Grant.

Bursaries

English universities and colleges charging the full tuition fee for a course have to provide extra non-repayable financial help to students receiving the maximum Maintenance Grant or Special Support Grant. The help could be in a variety of ways, for example cash or discounted accommodation costs. In 2007-08 the minimum bursary will be £305; however many universities are offering more, and not just to these students.

Disabled Students' Allowances (DSAs)

These help meet the extra costs students may have as a result of studying their course and as a direct result of their disability, mental health condition or specific learning difficulty. How much a student gets does not depend on income and this help does not have to be repaid.

Access to Learning Fund

This is available through universities and colleges and provides help for students who need extra financial support for their course and to stay in higher education. Your teenager should get in touch with the institutions where they are thinking of studying for more information about whether they can get this help and how much they could receive.

Planning ahead

Some families plan ahead to ease the costs of higher education through regular saving and investment plans. An independent financial adviser may be able to give you some ideas on the best ways of doing this.

Some students take time out before their higher education course and get a job to reduce the amount they have to borrow. Others take part-time jobs while they are studying to help boost their income, often working in shops, bars, hotels and restaurants.