So you've decided to pursue higher education and reap the rewards of all that extra knowledge and expertise going into your brain. You’ve chosen to invest in your future - but how much is it going to cost you? Most experts in Higher Education agree that having a degree increases your chances of finding better employment, but did you also know that a large proportion of students will face financial difficulties during their time at university and that many will graduate with considerable levels of debt?

To minimise the possibilities of financial stresses, you need to know how things work. For some of the sections, we’ve included some FAQs that should help answer some questions you may have. While we have tried our best to provide you with the most current information available, it is advisable to always check with your University Finance Services, Student Union or Student Support Services as they will have the most up-to-date information and can give you more personal help.

There are several sources of income available to students, ranging from government support and loans to employment. The following sections aim to cover the main sources of funding available:

Government Support For UK Students
  Student Loans
  Student Hardship Loans
  Access Funds
  Emergency Short-Term Hardship Funds

Some Other Possible Sources Of Income
  Educational Trusts
  Sponsorship
  Banks
  Employment
  Social Security Benefits

List of USEFUL CONTACTS

GOVERNMENT SUPPORT FOR UK STUDENTS

1) Your Local Education Authority (LEA)
- Students from 1998/99 and those previous, in the form of a means-tested grant and a fees contribution.
- Students from 1999/2000 and on, only through a means tested contribution towards your fees.

2) The Student Loans Company
Financial aid is given to a student in the form of a partially means tested student loan.

3) University Administered Access Funds
These are discretionary and administered by the educational institution.

Financial Support FAQs
Who qualifies as a 'UK Student'?
A prospective 'UK Student' must have been ordinarily resident in the UK for three years immediately prior to the commencement of a first approved full time degree course (or equivalent) and must be settled in the UK (within the meaning of the Immigration Act 1971) at the start of the course in order to be eligible to apply to a Local Education Authority (LEA) for government support.

Where does the money for a loan come from?
Student loans are provided through the Student Loans Company (SLC).

How much support can I claim?
Support provided by the SLC covers your tuition fee and a loan for maintenance, but both are subject to a means-test.

What is a 'means-test'?
A means-test is used to determine if you are in need of financial aid, and if so how much do you need.

If you are classed as a dependent student (ie your parents support you financially), the calculation is based on the total of what your parents' gross income is. Depending on the amounts to, you will most likely be placed in one of three categories:

1) Students from lower income families earning less than £23,000 gross can have the £1,050 tuition fee paid in full by the government.

2) Students from families earning between £23,000 and £35,000 may have part of the tuition fee paid for by the government and part will be expected to be paid by their parents. The parental contribution would be calculated by the LEA.

3) Students from families whose income is greater than £35,000 will not have any of the tuition fee paid for by the government.

STUDENT LOANS
The purpose of student loans is to help you with your living costs. Student loans cover a period of 52 weeks of the year, except for your final year where the loan will only cover you for a maximum of 38 weeks.

NOTE: If you are a final year student and you have a student loan you must contact the Student Loans Company before the April after you graduate if you wish to defer repayments. Unless you do this, repayment funds will automatically be debited from your bank/building society account. Check with your University Finance Services, Student Union or Student Support Services for more information.

As of October 1999, the student loan now has two elements to it:

1) a mandatory element that you are entitled to, and

2) a means tested element based on your LEA assessment.

You decide how much you want to borrow - up to the maximum amount set each year.

REMEMBER: Whatever amount of money you receive has to last you for the entire year. It is advisable that you prepare a budget plan to save yourself the problem of funds shortage later on.

Student Loans FAQs
How do I know if I am eligible for a student loan?
Almost all UK full-time undergraduate students, who are under 55 at the start of their course, will be eligible for a loan.

How do I receive the money?
The loan is paid termly for each year of the course.

What is the maximum benefit that I would be entitled to?
As of September 2000, the maximum loan available will be £3,725 (outside London) and £4,590 (in London).

TIP: Next to the interest free overdrafts offered on student bank accounts, the student loan generally is the cheapest form of borrowing.

What type of interest would I be paying on the loan?
The interest charged is linked to the preceding March inflation rate and applied on the 1st September each year and the rate is fixed for twelve months.

How do I apply for a student loan?
In England and Wales, you would apply from your Local Education Authority (LEA). In Scotland, applications are made through the Student Awards Agency Scotland.

When and how do I repay my loan?
You will not have to start repaying your loan until the April after you finish or leave your course. Repayments will be deducted from your pay by the Inland Revenue.

You will not have to pay if your gross income is under £10,000 a year.

The rate is 9% of gross income over £10,000. If your income falls below this threshold, repayments will be suspended.

So if you are earning £12,000 yearly, your repayment will be £15 per month and if you are on £20,000 yearly, your repayment will be £75 per month.

STUDENT HARDSHIP LOANS
(up to a maximum of £500)
Students who find themselves in financial hardship may apply for a hardship loan. You must:
  a) be eligible for a student loan
  b) have applied for your Student Loan prior to applying for the hardship loan
  c) have taken out the full student loan entitlement

The hardship loan is repaid in the same manner as the student loan.

NOTE: The amount available is limited and not all eligible students will be successful. See your Student Loans Officer for application forms and how to go about setting up a means-test interview.

ACCESS FUNDS
The purpose of Access Funds is to provide financial support to students who are experiencing serious difficulties as a result of financial hardship and may be deterred from entering Higher Education, or may have to discontinue their courses for financial reasons.

Access Funds are administered by the institution and in order to qualify, an applicant must be a) studying full-time or b) studying part-time at least 50% of a full-time course.

NOTE: These funds are limited and most institutions give preference to certain priority groups such as mature students, those with dependants, students with a disability or students who are required to be self-financing for tuition fees. Check with a Student Finance Adviser/Welfare Officer for further details and application forms.

EMERGENCY SHORT-TERM HARDSHIP FUNDS
Check with a Student Finance Officer/Welfare Adviser to see if your institution offers this type of fund or a fund similar to this. Some institutions offer a small fund for students who experience a change of circumstance during their course. Eligibility is often restricted to those students who are ineligible for Access Funds.

SUPPLEMENTARY GRANTS
Some students - such as disabled students, lone parents and those leaving care - will be able to apply for additional funds depending on their circumstances. Normally, you do not have to repay grants. Application is through the LEA and assessment depends on your category and personal circumstances.

SOME OTHER POSSIBLE SOURCES OF INCOME

EDUCATIONAL TRUSTS
Many charitable trusts and organisations offer financial sponsorships to students to enable them to undertake higher education courses. Information on national and local charitable trusts and organisations is available in the Directory of Educational Trusts reference book (found at reference libraries).

NOTE: If you are experiencing financial difficulty, keep in mind that researching and applying for such sponsorship can be a long and time-consuming process. This isn’t an option for students who need fast solutions to their financial difficulties.

SPONSORSHIP
Many private organisations offer financial sponsorships to people to enable them to undertake higher education courses. So along with Educational Trusts, this is another possibility to be explored. Booklets to consult for more information are: 'Springboard - Sponsorship for Students' published by CRAC/HOBSONS of Cambridge and 'Engineering Opportunities for Students & Graduates' published by the I.Mech.E. The Armed Forces offer 'cadetships'. Also contact your Course Admissions Tutor directly as the Department may have specific contacts.

NOTE: Just as with Educational Trusts, researching and applying for such sponsorship can be a long and time-consuming process with no guarantees of outcome. This isn’t an option for students who need fast solutions to their financial difficulties.

BANKS
The major High Street banks offer preferential terms to students and many colleges/universities have bank branches on campus. Holding an account with a branch on or near campus, means that transactions and negotiations can be made much easier by dealing directly with a specifically trained student business officer. It is also worthwhile to shop around, as banking packages vary. Obtain monthly statements to keep track of finances and retain them. You may be charged for duplicates (which may be needed for any Access/Hardship Fund Application). If additional borrowing is required, negotiate this with the bank first. Unauthorised borrowing will result in penalty charges and possibly, card facilities being withdrawn. If communication is not maintained between borrower and lender in this situation, the account may be passed to a Debt Recovery Agency which will affect future credit-worthiness.

EMPLOYMENT
Chances are that you will need to undertake some part-time or temporary work during your academic year as well as during the vacations in order to improve your financial position. It is important that you decide whether you are able to commit yourself to a permanent part-time job all year round or if temporary work would better suit your needs. When budgeting, it is prudent only to include guaranteed earnings and to balance the financial gains with the demands of the course.

SOCIAL SECURITY BENEFITS
Almost all full-time, undergraduate students are ineligible for benefits, even during vacation. However, being a student does not in itself, affect entitlement to Incapacity Benefit, Retirement Pension, Disability Living Allowance, Child Benefit, Severe Disablement Allowance or Widow's Benefit. But only a few students can claim Income Support, Housing Benefit and Council Tax Benefit. Those who can are lone parents, lone foster parents, some students with disabilities, and students of pensionable age. If a partner is not a student, the partner can claim these benefits in the usual way. If a partner is also a student, and there is a child, Income Support can be claimed for the summer vacation, together with Housing Benefit all year round.

USEFUL CONTACTS

Department for Education and Employment
Information on student financial support.

DfEE European Team
Dealing with non-UK European students.
Mowden Hall
Staindrop Road
Darlington DL3 9BG
Tel: 01325 391 199

Department of Education - Northern Ireland

Student Loans Company
100 Bothwell Street
Glasgow G2 7JD
Tel: 0870 242 22 11
Fax: 0141 306 2005

National Union of Students
Can provide information on many aspects of student finance.
461 Holloway Road
London N7 6LJ
Tel: 020 561 6500

Educational Grants Advisory Service (EGAS)
An independent advisory body. Can offer information and assistance to those who have exhausted the funding mechanisms and still facing financial hardship. Also provides information about the statutory funding system.
Send a stamped addressed envelope to:
EGAS, 501 - 505 Kingsland Road
Dalston, London E8 4AU
Tel: 020 7249 6636