Financing Your Education

“An investment in knowledge pays the best interest” – Benjamin Franklin

University is an exciting chapter in life where you get to meet new people, explore new places, and do some studying as well! With the increased independence that university brings, it is worth having some knowledge on the different costs that present themselves, and how you can be prepared to pay for them!

The Costs of University:

The ever-changing costs of university can be puzzling, so here we will try to keep it simple: let’s start with tuition fees.

Tuition loans are paid directly to the university from Student Finance England, so you don’t have to worry about this too much. This fee is capped at £9,250 per year, so all students will be entitled to this loan.

Maintenance loans are the loans you will care more about, as this is the money YOU receive! The maintenance loan is paid to you to fund your day to day living costs, including rent. This fee is capped at £9,978. The amount you receive is based on your parent’s income, and this amount may range from £4,989 – £9,978.

Changes to Loan Repayments:

As of late, there have been significant changes to how you pay back your loans. Firstly, you now have to repay your loan for a 40-year period after graduating. However, you do not have to start repaying your loan until you are earning £25,000. Once you earn over this threshold, you will contribute 9% of any income over £25,000 towards your loan.

These numbers may seem high, and somewhat overwhelming, but look on the bright side! In the US, the average student at a top American University is estimated to pay $88,948 PER YEAR for all of their fees.

Check out the comprehensive list of university fees here.

What if University is not for me?

If university doesn’t sound like your cup of tea, don’t worry! There are plenty of other pathways you could take, for example degree apprenticeships. These involve studying towards a degree, but whilst gaining invaluable industry experience. You won’t have to pay tuition fees, whilst earning a salary at the same time!

Key Terms:

Tuition Fees – The yearly fee (£9250) paid by student finance to university to cover the costs of studying.

Maintenance Loan – The money paid to you for rent, and day-to-day living expenses.

Degree Apprenticeships – An alternative to university, where you can gain a degree whilst earning a wage.

Student Finance England – The organisation which provides funding for your university life.