How much does going to University actually cost?
One of the most important aspects of deciding whether to go to University or not is the potential costs, short term and long term.
Since 2012 the cost of going to University has risen to between £6000 and £9000 per year for tuition fees depending on which course and University you choose, plus the normal cost of maintenance grants (up to £8000 per year.)
The new higher cost system of student finance has produced head lines such as ‘£51,000 worth of debt for new graduates’, but is the new system really that bad?
Here are the facts:
To start with, you only have to start repaying the debt accrued at University IF you earn over £21,000.To be precise you pay 9% of everything think you earn over the £21,000, for example if you earn £22,000 per year you will pay back £90 per year. So not all bad news.
If you lose your job, or have a low paying job you will not pay anything back, if you have not paid back your student loan after 30 years your debt will be cancelled. Under the new system those that gain the most out of University financially will repay the most. Think of student finance as a tax, rather than a loan, and it makes more sense.
In SIGTU’s opinion the new system is a fair one, and student should not be put off of going to University because of the debt, also, the benefit financially of going to University far outweighs the cons;
According to a report by the department of business; graduates will earn £150,000 more on average in their lifetime.
We want to make going to University as simple as possible for everyone to do if they want to, please find below our simple jargon buster!
This is the organisation that deal with all applications for loans and grants related to going to university.
Tuition Fee Loan
Tuition fees are paid every year, you can finance this yourself or as most people do get a tuition fee loan. The loans will be for £6000-£9000 per year depending on what course and University you choose and are paid directly to the University at the start of every term.
These loans are to help students with the costs of living, to apply you give student finance information on your personal and your family’s financial circumstances; they will then assess how much you are entitled to. These loans can vary from £4500 per year to £8000 per year, they will take into account where you are going to University (London students will be entitled to more,) students whose households earn less than £25,00 will more likely be entitles to the top rate of maintenance loan support.
It is worth noting that to the average 18-19 year old these sums of money may seem like allot, but in SIGTU’s experience it is also good to supplement this income with a part time job or an allowance from parent/other family members. Otherwise you may run out money quickly! Read out guide on working part time at University here.
These are paid out by student finance to those students who come from low earning households, they can be for up to £3300 per year, these grants never have to be paid back.
Like a grant, but paid by Universities directly to students, these sums of money never have to be paid back and typically can be for £1000 per year. Bursaries are paid as in incentive to get students on to particular courses, or to low income household students. Fee Waivers and scholarships are similar to bursaries; they do not have to be paid back.
Ask Universities you apply to if they offer any incentives, or look for information on their websites or prospectuses, the new higher tuition fee loans Universities ask for has mean the government has made Universities give out more to low income family students, so it is certainly worth asking!