Student finance – What is it all about?

  Apr 26, 2018       No Comments   

When it comes to student finance, it is a difficult topic to cover, but we are going to try our best and explain the tricky topic which is student finance.

Summary

• The maximum amount of tuition fee a university can charge is £9,250 a year. However, a university can charge any amount from free up to this amount, yet most universities charge around £9,000.
• Full time students starting in 2018 can apply for a maximum loan of £8,700, yet this is dependant of your household income.
• At the end of the three years, an average student will end up with around £50,000 worth of debt.
• Yet you won’t start repaying the debt off until you earn £25,000 each year. With repayments of 9% of anything above this.
• The loan will be cleared when you pay your debt off, or after 30 years, any outstanding debt is cleared.

Myths about tuition fees

There are so many myths about tuition fees, so we thought we would put some of them to bed.

You have to be rich to go to university

This is a total myth; the university is for all income families. This is why different students receive a different amount of grants and loans to co-inside with your financial situation.

It will affect your credit score

Incorrect… Student Finance will not affect your credit score or appear on your credit report.

Moving abroad will stop your repayments

Unfortunately, this is a myth! No matter where you are in the world, you will have to repay your loan off! It will work out that your equivalent wage, if it over £25,000 then it you should be making repayments. However, you have to actively contact student finance and let them know you are working abroad. Otherwise you will see a backlog of monthly repayments you’ve missed.

Now you know the basics of student finance, it is time to start applying for 2018/2019 academic year.