Students and Money
Everyone knows that it's tough going to survive on student money. You need to make sure that you get all the financial help you're entitled to. If you are unsure what you can claim or are having financial problems, speak to the Youth Support worker or Student Welfare Services in school or college.
Staying on at school or college at 16 is free unless you go to a fee-paying school, but there are still a number of ways you may be able to get extra money.
If your family doesn't have much money coming in, you may also be able to get money through your Local Education Authority (LEA) from the Learner Support Fund (sometimes called the Access Fund). This can help with the cost of books, equipment, transport, fees and childcare.
Family Action may also be able to give support. They have an Educational Grants Trust Search for students to check whether you are eligible to apply for other funding. For student finance advice from a money expert, visit Money Saving Matters.
The students’ charity, UNIAID, provides a Student Calculator to help manage your student budget.
Future Students explains the changes coming to student finance from September 2012. It explains what the charges will be, and what support you'll be able to apply for.
Higher Education
September 2006 saw the introduction of top-up fees, and these fees mean you won't have to pay fees up front at the start of each university year. Instead, fees of up to £3,375 per year are paid back after you graduate through loan repayments when you earn more than £15,000 a year. Students pay different costs depending on: where they live; if they live at home or at university accommodation; what university students choose to go to; household income; and personal circumstances.
From September 2012: The cap on tuition fees for new university entrants will be raised to £6,000 per year, and in exceptional circumstances universities will be allowed to charge up to £9,000 per year. Students taking a gap year during 2011, to start university in 2012, will also be charged these higher rates. The BBC have compiled a list of the universities' proposed fees.
Don't panic though - there is plenty of help available. Financial support will apply if you have special needs or a disability, you have children, you have been in care, and if you are from a low income family.
Maintenance Grants are available to help with living costs if your household income is under £50,020. The maximum Maintenance Grant is £2,906, and you do not need to pay this back. You'll get the maximum Maintenance Grant if your household income is under £25,000.
A Maintenance Loan means you can get help if you live at university or if you live at home. If you are eligible for the loan you will get £3,838 if you live at home, £4,950 if you live away from home (outside London) and £6,928 if you live away from home and in London. It's normally paid into your bank account by Student Finance England. Repayments are due from the April after you leave your course and you have to repay 9% of your earnings over £15,000.
You can read Student Loans - A Guide to Terms & Conditions 2012/13, and also A Guide to Financial Support for Higher Education Students 2012/13.
Maintenance Grants will rise from £2,906 to £3,250 for students from households earning less than £25,000, but will only available if your household income is under £42,600. The threshold for Maintenance Loan repayments will rise from £15,000 to £21,000 (if you began your course before September 2012, your threshold will remain at £15,000). The maximum Maintenance Loan will be £5,500 for those studying outside of London, and £7,675 for those at a university or college in London. For students living with their parents, the highest available loan will be £4,375.
Extra Funding Options
You may also want to consider alternative sources of funding, such as a hardship loan which you can apply to the Student Loans Company for. This could amount to anything up to £500. Many students also turn to part-time work to fund their studies.
Student Bank Accounts
It's important to choose the right bank for you when going to university. If you know where you are going to study then look at which banks have branches there and see what services they offer. Find out the important bits such as how big the overdraft facility is likely to be and does it increase each year? Using Internet Banking will make managing your money so much easier.
Student Costs Breakdown
The cost of basic student life varies from town to town and from college to college. There are always certain expenses for which you have to plan ahead for, such as rent, bills, food and other groceries, tuition fees, books and equipment, stationery and photocopying, going out, travel costs, clothes, insurance and interest and fines on bank accounts and in the library. It's just a question of finding that healthy balance for student spending. The priorities are paying bills and rent, but that doesn't mean you can't splurge once in a while on a new top or a couple of CDs.
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