how does a student obtain finance - ie grants/loans etc

robnye

My eldest daughter is currently in yr12 and doing her first year of A levels, towards the summer, the college she is attending is holding a university information day, so that the students can find out more information about going to university.

The question I have is regarding student finances ie grants/loans/fees……

I understand that most students nowadays come away form university with some sort of debt – in the region of thousands…….. and then spend years paying it back at a very low interest rate, but how is the debt obtained….. apart from the obvious, socialising…….

How do students fund their university tuition……
Whats is means tested……
If the parents income is too high (for what), how do the students then raise funds….. bank loan….. etc

Whats the difference between loans/grants

Obvious costs involved are the tuition fees, what else are they expected to pay out for (other than food/shelter/clothing etc)

Oldernotwiser

If you look at this thread, you may find that it answers many of your questions.

http://forums.moneysavingexpert.com/showthread.html?t=379916

Basically, the student takes out a loan for the fees and a loan for maintenance. The fee loan is not means tested and only 75% of the maintenance loan is. These are paid back when the student leaves university and earns over £15,000. If the student's family is on a low income they'll also be eligible for an additional maintenance grant that doesn't have to be paid back. The maintenance loan and grant have to cover accommodation, food, clothing, books, photocopying, transport and socialising. Many students have part time jobs that increase their income and some have parents who are able to give them an allowance or pay fees etc. However, this is not a requirement and many parents pay nothing.

I'm sure your daughter will be getting a great deal more information on this as the time passes and there may be parents' information evenings on the subject.

crazy_guy

robnye wrote:

My eldest daughter is currently in yr12 and doing her first year of A levels, towards the summer, the college she is attending is holding a university information day, so that the students can find out more information about going to university.

The question I have is regarding student finances ie grants/loans/fees……

I understand that most students nowadays come away form university with some sort of debt – in the region of thousands…….. and then spend years paying it back at a very low interest rate, but how is the debt obtained….. apart from the obvious, socialising…….

How do students fund their university tuition……
Whats is means tested……
If the parents income is too high (for what), how do the students then raise funds….. bank loan….. etc

Whats the difference between loans/grants

Obvious costs involved are the tuition fees, what else are they expected to pay out for (other than food/shelter/clothing etc)

Right your question "how do students fund their univeristy tuition" - simply they get their student loan of 3-4.5K depending on circumstances and then ontop you get the tuition fee dumped onto the student debt which goes direct to the uni.

Means tested is based upon the parents income, if the parents are not on a high income the SLC pay out a higher loan and possibly a grant.
If they are on a high income the parents are expected to assist their offspring through university but obviously get some acceptable sum of money.

The difference between loans and grants are loans have to be repayed, grants don't.

Apart from tuition fees students have to pay for food, housing, socialising, clothing, tv license, insurance, holidays, books, pens, everything really.

Most students get jobs to assist their way through uni, in my 1st and 2nd year i spent weekends working at sainsburys as a baker, this year i'm a student warden one night a week but most of my money comes from savings from working during summer.

robnye

thanks, i did read the other thread, but still a little confused, as it seems there are several different ways of getting funding/loans/grants

yes, i realise that there will be tonnes of info coming my daughters way.... its just that she asked me at the weekend, and i was stumped, or rather said i would find out. It would be useful to know what i may be letting myself in for....!

so, if our household income is over 40K, what is she able to apply (assuming the rules dont change over the next 2 years)
i understand the following is/are available - depending where she goes to study
tuition fee loan
Maintenance Loan
Grant for living costs
University Bursary
University scholarships

which ones are means tested?

Snow_Angel

What is she planning to study? The reason I ask is, I am doing a course funded by the NHS and therefore do not pay tuition fees and I receive a bursary. Also, some courses can attract sponsorship from international/national companies e.g. engineering.

i.e. the funding questions you are asking may be different for different courses rather than one generic answer.

robnye

Snow_Angel wrote:

What is she planning to study?

now that is the million dollar question......... she thought she knew, but not now...... similar to lots of 17 year olds i think.... :rolleyes:

Oldernotwiser

robnye wrote:

thanks, i did read the other thread, but still a little confused, as it seems there are several different ways of getting funding/loans/grants

yes, i realise that there will be tonnes of info coming my daughters way.... its just that she asked me at the weekend, and i was stumped, or rather said i would find out. It would be useful to know what i may be letting myself in for....!

so, if our household income is over 40K, what is she able to apply (assuming the rules dont change over the next 2 years)
i understand the following is/are available - depending where she goes to study
tuition fee loan
Maintenance Loan
Grant for living costs
University Bursary
University scholarships

which ones are means tested?

The grant for living costs is means tested and she's unlikely to be eligible on your income. 25% of the maintenance loan is also means tested. I think that I'm right in saying that you only get the university bursary if you get the maintenance loan but I'm prepared to be corrected on that one.

Oldernotwiser

robnye wrote:

now that is the million dollar question......... she thought she knew, but not now...... similar to lots of 17 year olds i think.... :rolleyes:

Well, she's got 7 months before she has to start her UCAS application but she needs to decide on the subject before she can start researching courses and universities. No need to panic but don't let time slip away for too long.

DrFluffy

http://www.studentsupportdirect.co.uk/portal/page?_pageid=1647,468385&_dad=portal&_schema=PROTOCOL

Read the info for the PN1 form (N = new student, PR1 is for returning students...)

robnye

DrFluffy wrote:

http://www.studentsupportdirect.co.uk/portal/page?_pageid=1647,468385&_dad=portal&_schema=PROTOCOL

Read the info for the PN1 form (N = new student, PR1 is for returning students...)

excellent, the online calculator was very useful :T

stenweb

Oldernotwiser wrote:

If the student's family is on a low income they'll also be eligible for an additional maintenance grant that doesn't have to be paid back. .

What is the definition of family here, with respect to being a mature student and if you don't (or haven't) had any financial support from family in say, 10 years or so?