A brief low-down on student finance?

I don't really understand the student finace system. Can somebody briefly explain it to me.

My household income is less than 25K so what am I entitled to?
How should I budget my money?
Should I save my student grand/bursary in a savings account?
When I'm earning £15K> how much will they take from me a month/year?
What if the bank takes some money in order to reduce my student debt but the money they removed was needed to pay my housing rent/mortgage, wouldn't that case problems?
Are you able to pay off your entire/big bulk(s) of student debt? If so how?
If you want to continue future study (PhD,MSc) will I still be eligible to apply for student finance?

As you can see I'm very confused. Help?

(edited 13 years ago)

Reply 1

heidigirl

17

Original post by T-Toe

I don't really understand the student finace system. Can somebody briefly explain it to me.

My household income is less than 25K so what am I entitled to?

Outside of London and living away from home, it's about £6400 (with £2906 of this being a grant and the rest a loan; if you are studying in London you will get more loan; if you are living at home and commuting to uni you will get less but the same amount of grant). Plus you should get a bursary from your uni which is usually between £500-£1000. You get paid grants and loans in three installments each year, bursaries are usually paid in two installments by your uni.

How should I budget my money?

I believe there are some stickies on how to budget in the money and finance forum. You can also find lots of info online.

When I'm earning £15K> how much will they take from me a month/year?

It's 9% over everything you earn over £15k. So for example, if you were earning £16k, you would only pay 9% of the £1k over you earn, i.e. £90 a year.

What if the bank takes some money in order to reduce my student debt but the money they removed was needed to pay my housing rent/mortgage, wouldn't that case problems?

It doesn't work like that. Your student loan repayments come straight out of your pay with tax and national insurance.

Are you able to pay off your entire/big bulk(s) of student debt? If so how?

Yes, you can make voluntary payments by cheque, debit or credit card. There's a special student loan company repayment website where you can log into your account to pay it.

If you want to continue future study (PhD,MSc) will I still be eligible to apply for student finance?

There is no student finance for post grad study (except for PGCEs). Post graduate courses that come with funding are usually funded by university scholarships or by research councils, or people also take out career development loans.

(edited 13 years ago)

Reply 2

508836

OP

3

Original post by heidigirl

X

Thanks so much +rep, you've put me a ease. I'm applying to student finance, so what will they put in my bank account? Just my maintenance grant/bursary? Lastly how will I be able to pay for my student accommodation?

Edit - Sorry one last question, I promise. If a lot of people are eligible for non-repaying grants/bursary, why are some students in so much debt? Is the grant/bursary only applicable for first years?

(edited 13 years ago)

Reply 3

Aout

Original post by T-Toe

Thanks so much +rep, you've put me a ease. I'm applying to student finance, so what will they put in my bank account? Just my maintenance grant/bursary? Lastly how will I be able to pay for my student accommodation?

Edit - Sorry one last question, I promise. If a lot of people are eligible for non-repaying grants/bursary, why are some students in so much debt? Is the grant/bursary only applicable for first years?

Well, if you're not earning much, you become eligible for a combination of bursary and loan- I'm in the same situation as you, and the amount of support I'm entitled to it still more loan then grant. So each year, I get a loan of over £3000 that needs to be paid back, plus the tuition fee loan. Which adds up to over £6000 a year to be paid back, even though I'm receiving maximum maintenance grant to top up the loan.

Reply 4

hypocriticaljap

2

Original post by T-Toe

Thanks so much +rep, you've put me a ease. I'm applying to student finance, so what will they put in my bank account? Just my maintenance grant/bursary? Lastly how will I be able to pay for my student accommodation?

Edit - Sorry one last question, I promise. If a lot of people are eligible for non-repaying grants/bursary, why are some students in so much debt? Is the grant/bursary only applicable for first years?

Max loan and grant is just over £6K a year.
Tuition fee is around £3300 a year.
So each year you borrow about £6K. After 3 years you owe £18K plus interest.

That's how students are in debt!

Reply 5

508836

OP

3

Original post by hypocriticaljap

Max loan and grant is just over £6K a year.
Tuition fee is around £3300 a year.
So each year you borrow about £6K. After 3 years you owe £18K plus interest.

That's how students are in debt!

Thanks.

Is the loan needed to pay student accommodation?

Reply 6

Gemini92

Original post by T-Toe

Thanks.

Is the loan needed to pay student accommodation?

Unless you have a lot of savings, you'll use the loan to pay for your accomodation, as well as food, going out etc.

Reply 7

508836

OP

3

Original post by Gemini92

Unless you have a lot of savings, you'll use the loan to pay for your accomodation, as well as food, going out etc.

Cheers

Reply 8

508836

OP

3

Original post by Gemini92

Unless you have a lot of savings, you'll use the loan to pay for your accomodation, as well as food, going out etc.

Do you have a pay on a term basis? And how do you pay for the student accommodation?

Reply 9

Gemini92

Original post by T-Toe

Do you have a pay on a term basis? And how do you pay for the student accommodation?

Generally, most students pay the rent termly, although some unis give you the option to pay monthly instead. Rent is paid via a direct debit, so the money is taken straight from your bank account on a pre-specified day by the uni.

Reply 10

Honeybear.

8

If my accommodation is £4K a year (40 week contract at £100 a week), and my maintenance loan is £3somethingK how am I supposed to pay it all, and eat etc? I think I'm eligible for a grant but still may not be enough. Do most students rely on family/jobs? Help.

Reply 11

508836

OP

3

Original post by Gemini92

Generally, most students pay the rent termly, although some unis give you the option to pay monthly instead. Rent is paid via a direct debit, so the money is taken straight from your bank account on a pre-specified day by the uni.

I feel a lot at ease. Thanks a lot.

Reply 12

Gemini92

Original post by Honeybear.

If my accommodation is £4K a year (40 week contract at £100 a week), and my maintenance loan is £3somethingK how am I supposed to pay it all, and eat etc? I think I'm eligible for a grant but still may not be enough. Do most students rely on family/jobs? Help.

If you can't afford accommodation, you'll either have to get a job or hope that your family will help out. You could try looking for cheaper halls, some unis have halls that are about £75-£80 a week.

Reply 13

debtbreakers

It's a shame students now have this added worry, if not your studies were enough to worry about. Remember, you owe the government, not the banks once you graduate. However, it may be impossible to not stretch that loan or overdraft and once student days end so can the banks leniency. If you end up with debt outside of the student realm that is deepening then there is still help out there. Debt management companies have had a bad press recently though some are ethically minded and can point student in the right direction if help is required - student debt advice.

A brief low-down on student finance?

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