Student loans/tuition fees?

LeeJ_2

My daughter will soon be embarking upon further education. I am just trying to get my head around the whole subject of student loans/tuition fees etc.

(we live in England)

I have a few questions please.

a) The Uni/college will charge an annual tuition fee. Does she have to pay all of that or does she pay a percentage based upon means testing? If the amount is based upon means testing is it on the parent's income (even though she would live away from home)

b) I assume that as long as the course is an approved course (degree etc) that she is automatically entitled to a student loan. Is that correct?

c) Assuming she is entitled to a loan. Are there separate loans to cover i) tuition fees and ii) living expenses (she will be living away from home). What is the max loan (in total) available under the student loan scheme?

Any help/advice/pointers would be much appreciated

StudentSaver_2

Hi LeeJ

a) This September top-up fees are being introduced, meaning that no money is paid up-front for the tuition fees. The fees are paid after graduation, and will be taken each month automatically from your daughter's bank account as soon as she starts earning over £15,000. Correct me if I'm wrong other MSEers, but I don't think this £3000 will be means-tested. The current system is based on means-testing (I have to pay full tuition fees because of my parents' wages), but because the parents aren't expected to be contributing towards the fees, I don't think they're means-tested.

b) Every undergraduate student on an approved degree course will be entitled to a student loan from the Student Loans Comapny. This, however, IS means tested. Every student is entitled to take 75% of the available loan, but the further 25% is means-tested, based on the income of the student's parents. I can't give you exact figures as to what 75% of the full loan is, as I don't know. Perhaps others on here will be able to help?

c) As I said above, I don't know what the maximum loan available is. It's different in London, due to the London Weighting (just like normal wages). The loan comes in 3 lump sums each year - usually at the start of each term. The Student Loans Company do not state what you should use the loan for, therefore it is not separated into money for fees, money for food etc. What your daughter does with her money is up to her. Some people go away on holiday with it. I've put mine into an ISA. Everyone uses theirs in a different way, and how you budget it is vital.

kar

Hiya Take a look at the student loans website it explains it and has a claculator thingy:
[url] http://www.studentsupportdirect.co.uk/portal/page?_pageid=1647,468488&_dad=portal&_schema=PROTOCOL [/url]

Loan:
This year the first 3145 isn't means tested and the rest is (1195) Just checked next year and the total amount is going up to 4405 next year

Maintanence Grant:
"From 2006, new full-time students from lower income households will be eligible to receive a new (non-repayable) Maintenance Grant which is worth up to £2,700 a year. The actual amount you will be entitled to receive will depend upon your household income.

Household residual income of less than £17,500: student receives full grant
Household residual income of £17,501 - £37,425: student receives part of the grant
Household residual income of more than £37,426: student receives no grant
This grant will be paid in three instalments, one at the start of each term, just like your student loan. "

Those receiving the full maintanence grant must also be able to apply for a grant from the university.

Fees:
"You can apply for the new Student Loan for Fees to cover the cost of these fees. This will give you the advantage of not having to find this money from elsewhere, and we will pay the fees directly to your institution. You then repay the fee loan in the same way as your other student loan – only once you have finished studying and are earning over the repayment threshold of £15,000 per year"

Hope that helps