Tuition Fees and Student Loans

Introduction

1. There is a range of financial help and support available to students entering Higher Education, comprising loans from the government and bursaries from your university or college. Financial support for students is run by Student Finance England.

Student loans from the government

All eligible, full-time students are able to take out two student loans per academic year of the course:

1. Tuition Fee Loan - to cover the full amount of tuition fees (up to £9,250 for 2019). The amount does not depend on household income. It is paid directly to the university or college.
2. Maintenance Loan - for help with accommodation and other living costs. The maximum amount depends on certain factors, including household income, where you live whilst you’re studying and whether you are in your final year of study. At the moment the maximum is £8,700 if you live away from home and study outside of London and £11,354 if you study and live (away from home) in London, less if you live at home with your parents. The money is paid into your bank account 3 times per academic year at the start of each term. It’s also affected by any help you get through any NHS bursaries.

How much can you get?

Use the Government's Student Loan Calculator to find out what you will be eligible for.

Bursaries, Scholarships and Awards

Bursaries and scholarships are extra sources of financial help from colleges and universities. They’re paid on top of any student loans or grants you may get. They may be paid in cash or in another form - such as a discount on accommodation. Bursaries and scholarships don’t have to be repaid. There is a lot of money available if you look for it. These may include:

1. Academic scholarships
2. Employer sponsorships and scholarships

Extra help

You may qualify for extra help on top of student loans and bursaries if you are disabled, or you have a mental health condition or specific learning difficulty. And students with a child or an adult dependant may qualify for an additional grant or allowance.

Repaying Student Loans

1. You’ll be due to start repaying your loan in the April after you finish or leave your course.
2. You’ll only start making repayments when your income is over the current UK repayment threshold of:
   • £480 a week
   • £2,083 a month
   • £25,000 a year
3. Repayments are based on what you earn and not what you have borrowed.
4. If you stop working, or your income falls below these thresholds then you will stop making repayments. You can also make voluntary over-payments at any time.
5. When you start making repayments, you will repay 9% of your income over £25,000.
6. Here are some example repayment amounts:

Annual income before tax	Monthly salary (before tax)	Monthly repayment
Up to £25,000	£2,083	£0
£27,000	£2,250	£15
£30,000	£2,500	£37
£35,000	£2,916	£74
£40,000	£3,333	£112

Interest

1. You are charged interest on your loan from the first payment date until your loan is repaid in full. Interest is added to the amount you owe every month.
2. The interest rate is based on the UK Retail Price Index (RPI)* and will vary depending on your circumstances.
3. The interest rate is updated once a year in September, using the RPI from March of that year.

Your circumstances	Interest rate
Whilst studying and until the April after leaving/completing the course	RPI Plus 3%
From 6 April after leaving/completing the course until the loan is repaid in full	Variable rate dependent upon income. RPI (3.1%) where income is £25,000 or less, rising on a sliding scale up to RPI plus 3% (6.1%) where income is £45,000 or more.

Source: All data from The Student Loans Company (SLC).

• Note: The Retail Price Index (RPI) is a measure of UK inflation. It measures changes to the cost of living in the UK.