The idea of going to university has always been an aspirational goal for many and over the years it has become more accessible to the masses. Student loans, scholarships and bursaries have made the prospect of going to University within reaching distance. However, the cost of university fees can still pose a financial worry for many families. Here we take a look at student finances and the best options for you.
How much are tuition fees
The average annual tuition fee is around £8,500 a year (up to a maximum of £9,250.) Don’t worry though, as you are not expected to pay these fees upfront. Your son or daughter can apply for a student loan, which is a better option than you taking out a loan yourself to pay the fees, as student loan interest rates are much lower in comparison.
Student Loans explained
There are two types of Student Loans available. Tuition Fee Loans and Maintenance Loans. Neither of these loans need to be paid back until AFTER your child has graduated. The Tuition Fee Loans cover the tuition fees, whereas Maintenance Loans can be used to help with costs of accommodation, food, travel etc. These loans are means tested and assessed individually depending on where they will be studying and the family income.Maintenance loans are only there to assist and will unlikely cover all of the outgoings that your child will have, meaning that your child may have to consider part-time work alongside their study, or visiting the “Bank of Mum and Dad”
Bursaries and Scholarships
Financial support can often be available from the university direct. These can be offered to students from a family with lower income or based on academic ability or disability.
Repaying Student Loans
Student loans are repayable once yourchild is earning over £21,000 per year. This will come out automatically, paid directly from their employer to the Student Loans Company. However, the outstanding debt will be written off after 30 years if it has not all been paid off.
Having a child that is going to University can be daunting for many reasons, but don’t let the financial side of university get you down. Our expert financial advisors are on hand should you wish to discuss your financial situation and gain some advice. Contact us on 01608 651608