Student Finance
Student finance fund the full tuition fee for your chosen university additionally they provide the student with maintenance loans/grants for each year that they study.
Tuition fees £9,250 paid directly to the university per year
Maintenance loans/grants Up to 16,000 per year paid directly to you.
The above figure is made up of additional grants which is available to the student which are listed below;
Childcare Grant – full-time students only
Parents’ Learning Allowance – full-time students only
Adult Dependants’ Grant – full-time students only
Repayment of Loans
Majority of the money given to you and the university is given to you as a loan. This is nothing like your conventional loan here is some of the reasons why.
- Only Start paying back once you left your course hopefully after you attained your degree.
- You only ever pay back 9% of anything you earn over 27,295
- If you earn less than 27,295 there are no repayments to be made
- The total debt is struck off after 30 years regardless of what has been paid on it
- Does not appear on your credit search
- Does not affect your credit rating
Lets break it down with an example
Isaac chose to study accounting and finance at one of our chosen university, he chose a foundation course which last for 4 years as he’s been out of education for a while.
During that period, he received
£9,250 PER YEAR TO THE UNIVERSITY
£16,000 PER YEAR FOR HIMSELF
TOTAL
£9,250 x 4 = 37,000 (university)
£16,000 x 4 = 64,000 (himself)
THAT’S A TOTAL OF 101K.
64K OF WHICH ISAAC RECEIVED DIRECTLY
Isaac went on to become an accountant at a small accountant firm where he earned 30k a year.
He will only pay 9% of 2,705 which is £243.45 a year which will be broken down into monthly payments.
The payments will be deducted directly just how tax and ni are deducted.