The Facts and Fees of Student Financing

This advice page is provided by Bournemouth University

Summer/Autumn 2012 Update

The Government has announced major reforms to student finance. From 2012 English universities will be able to charge up to £9,000 a year for course tuition fees.

Here we have tried to answer what these reforms mean for you.

Quick summary of the reforms

From 2012 the cap on tuition fees for UK/EU students has been lifted, but still regulated, as a way of investing in the future of English universities. In the vast majority of cases, universities have lost most of their Government funding for university places.

No fees will be payable upfront by students but will be repaid after graduation.

Will I have to pay any fees upfront?

No.

Students covered by the new fees regime will not have to pay the cost of tuition while they are studying at University. Government-backed student loans will be available which will be paid back only once a graduate is earning over £21,000 a year.

What are the key facts about the financial support that the Government is offering to students?

There will be no upfront costs - loan repayments will start only when you have finished your studies and when you are earning over £21,000 per annum. They are calculated at 9% of the income over £21,000. For example: if you are earning £25,000, you will pay back £6.92 a week (£30 a month, or £360 a year)

Loans for course fees will also be available for part-time students. Loans available to cover living costs expenses for those both living at home or away from home – these are called Maintenance Loans.

When you come to repay these loans, the maintenance and tuition loans are combined and you will repay one combined loan. This repayment will be paid through the tax system, by using your national insurance number. With any outstanding loans will be written off after 30 years.

Some students may be eligible for non-repayable grants up to £3,250 are also available (criteria apply). Students from lower income families will be able to benefit from a new £150m National Scholarships Programme.