Student Finance                                                  

*NOTE* The information on this page is intended as a GUIDE to give you some idea of what you MIGHT be able to claim.

Benefits and criteria often change so use the contact details and websites below to find out what you can claim.

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Apply for grants online [July 2006]

Higher Education students in England will be able to apply for student loans and grants online at the same time as applying for their place at university, under new plans announced by the Higher Education Minister Bill Rammell.

For the first time, potential students will be able to access financial support through an integrated student finance service which will be delivered by a single, national delivery organisation. This integrated service will be designed around their needs, allowing them to investigate the financial support available across a range of courses and apply for government backed loans and grants with ease at the same time as they are applying for a university place. More at www.dfes.gov.uk/pns/DisplayPN.cgi?pn_id=2006_0093.

Higher Education student finance changes

The Government published its White Paper 'The future of higher education' in January 2003. The changes have now received parliamentary approval and the Higher Education Act came into force on 1 July 2004. The Act makes a number of changes to student finance, with the aim of targeting support on those who need it most.

Abolition of UP-FRONT fees for full-time undergraduate courses

• From 2006 full-time undergraduates will not have to pay any money up-front, or while they are studying. Instead, both new and existing students will be able to defer payment of their tuition fees by taking out a student fee loan, which they will start repaying after they leave higher education and are earning more than £15,000 a year.

• Universities will be able to vary fees from £0 to £3,000 per year for new starters from 2006. The maximum they can charge will be capped at £3,000 (apart from an adjustment to take account of inflation) until 2010 at the earliest. The amount universities charge may vary between courses, as well as between universities.

• Students who have started their higher education courses before 2006 will continue to be subject to the current arrangements whereby they make a contribution towards their tuition fees up to the standard fee of around £1,200 depending on their household income. However, from 2006 these students will also be able to defer payment until after they leave university.

GAP YEAR STUDENTS

• Students who are offered a higher education place in September 2005 but decide to obtain a deferral from their chosen university and take a gap year before starting in September 2006, will not have to pay the new variable fees of up to £3,000 a year. Instead they will be treated as if they started in 2005 and will be asked to make a contribution towards their tuition fees of up to around £1,200 depending on their household income. This payment can also be deferred.

TIP: A few really good gap year websites are

www.Gapyear.com   www.findagap.com   www.findaGapJob.com

GRANTS AND MAINTENANCE LOANS

• From 2006, new full-time students from lower income households will be eligible for a new income assessed non-repayable maintenance grant of up to £2,700. Around half of all new full time students are expected to receive a full or partial grant.

• Students from lower income households who started university in 2004 or 2005 (or are treated as having started in 2005) will continue to be eligible for the Higher Education Grant of up to £1,000 a year introduced in September 2004.

• The maximum rates of the student maintenance loans will be raised from September 2006 to help students meet their basic living costs. The biggest increase will be in London and these higher rates will be available to both new and existing students.

• From April 2005, the repayment threshold at which all student loans start to be repaid will increase from £10,000 to £15,000.

• For students starting their studies in 2006 or later, the Government will write off all student loan balances which are left unpaid 25 years after the individual has left their course.

SAFE GUARDS FOR STUDENTS

• Universities wishing to charge more than the standard fee of around £1,200 will first have to enter into an Access Agreement with the new Office for Fair Access (OFFA). These Agreements will set out the universities proposals for improving access including the action they will take to promote fair access, so that students from all backgrounds are encouraged to apply. These agreements must include financial support for students.

• Universities who decide to charge the maximum £3,000 for a course will have to provide at least £300 a year in financial support, such as bursaries, to students on those courses who are receiving the full £2,700 maintenance grant. This means that students who receive the full maintenance grant and who are on courses charging £3,000 will get a package of non-repayable support of at least £3,000 a year. Some will get more than this, as many universities are expected to offer bursaries of more than £300.
  

Where to Get Help and More Information    [Back to quick linker]

If you are considering staying on in education there are a number of benefits that you might be able to claim. This will depend on your personal circumstances.

Your Connexions Personal Advisor can give you more information about student finance. Below you will find some local sources of information and links to useful websites.

Education Maintenance Allowance: This is payable to eligible young people from September 2004.