Money for university

If your son or daughter is going to university, there’s plenty of financial support on offer including Student Loans and non-repayable grants and bursaries.

Is your child thinking about university?

By going into higher education, your child will be making a long-term investment in their future. Not only could they have a greater choice of careers, they may earn more too - over their working life the average graduate will earn about £100,000 more after tax in today’s money than someone with A-levels who’s not been to university.

For many parents, however, the question of how their son or daughter is going to pay for their three or four years of study may be one of their first concerns.

Tuition fees and living costs: getting them covered

The two main costs that your child will need to cover while they’re in higher education will be their tuition fees and living costs. However, there’s plenty of financial support available for both, including non-repayable Maintenance Grants to help with living costs.

What money is available?

Generally, there are three sources of financial support available to new full-time students - Student Loans, grants and bursaries.

Remember that grants and bursaries never have to be repaid, regardless of what your child receives.

Student Loans

Student Loans are the cheapest form of money your child can borrow long term. The interest rate is linked to the rate of inflation - meaning that what your child repays is broadly the same in real terms, as what they have borrowed.

There are two different types of Student Loan - one is designed to pay for tuition fees (£3,465 for 2012/2013) and the other to help towards day-to-day living costs such as rent and travel.

Loans for tuition fees are not income-assessed: loans for living costs are. Your child won’t have to repay their Student Loan until they have left their course and are earning more than £15,795 – equal to £303 a week or £1,316 a month.

Maintenance Grants

Around two-thirds of new, full-time students are likely to qualify for a Maintenance Grant to help with their living costs while at college or university. It's worth up to £3,475 for 2012/2013.

Bursaries

On top of Student Loans and non-repayable Maintenance Grants, universities and colleges will also offer bursaries to a wide range of students. This is additional money that you don’t have to pay back.

Students paying the maximum tuition fee and receiving the full Maintenance Grant are guaranteed to get at least £347 for 2012/2013, but they'll often get significantly more.

Finding out more about student finance

Applying for student finance

Your son or daughter should make their application for financial support as soon as possible after they’ve applied for a course - they don’t need to wait until they have received an offer from a university or college. The online application process is quick and easy.

Supporting your child's application

If your child applies for types of financial help which are income assessed, you’ll often be asked to provide information about your own income for their application.

Financially supporting a student (education, learning and skills section)

Questions about what university is like?

You may want to find out more about what higher education will be like for your child - especially if you didn’t go to university or college yourself. Follow the link below for answers to some common parents’ questions.