Grants and allowances
debt levels vary considerably
Recent figures indicate average graduate debt has risen by over £5,000 since 2003 to £13,500. Tuition fees up to £3,000 per year from September 2006 are likely to mean that this figure will rise steadily. Debt levels vary considerably depending upon the length of your course, where you are studying (as fees vary from one institution to another) and the level of financial support you receive.
As the majority of students are not eligible for grants, and charges are made for tuition fees, many students now rely on student loans as their main source of income. They are increasingly relying on various forms of credit in order to survive an average three year course.
The information below gives a brief summary of the sources of financial help available. More detailed information can be obtained from the Local Education Authority (LEA), Department for Education and Skills (DfES) or National Union of Students (NUS).
Local Education Authority (LEA)
Student loans (for living costs and fees) A maintenance loan is available for help with living costs while you are at college/university. Maintenance loans are paid directly to you, in three instalments throughout the year. From September 2006 tuition fee loans are also available to cover the costs of fees of up to £3,000 per year. The tuition fees loan is paid directly to the university by the Student Loans Company.
New students will be able to borrow up to £3,000 a year in 2006/2007 to cover the full amount of tuition fees. The amount you get does not depend on your income or that of your family. Twenty-five percent of the maintenance loan is based on your income and that of your family. For 2006/2007 the maximum maintenance loan is £6,170 for those in London and £4,405 outside London.
You need to apply for student loans and other government support you may be entitled to as soon as you apply for your course. You can apply online at www.direct.gov.uk/en/educationandlearning or you apply by contacting your local education authority for an application form.
Disabled students' allowances (DSA)
If you are a student with disabilities you may be eligible for a disabled student allowance, which can help with the costs you incur in attending your course. These are available to full-time and part-time students with disabilities. Unlike a student loan, DSA assistance does not have to be repaid. Talk to your LEA to see if you can claim or tick the box on the main student finance application form.
Childcare grant
The childcare grant is money to help you pay for childcare costs while you are a full-time student. The amount you get will depend on your household income and your actual childcare costs. To qualify, you must have a dependant child or children in registered or approved childcare. If you qualify, you can receive up to 85% of your actual childcare costs. You do not have to pay back this grant.
Adult dependants' grant
If you are studying as a full-time student in higher education and have an adult who depends on you financially, you may be entitled to extra financial help. An adult dependant can include a partner or another adult who depends on you financially. This will usually be a member of your family. However, you can't count your grown-up son or daughter as adult dependants.
Parent's learning allowance
If you have dependent children you may be able to claim a parent's learning allowance for extra help with course-related costs. The amount you get is dependent on your income and that of your children.
Maintenance grants
Maintenance grants of up to £2,700 (or special support grants if you are eligible for benefits such as Income Support and Housing Benefit) are available for full-time higher education students from lower income households starting a course from September 2006. These grants replace the Higher Education Grant for new students. You do not have to repay these grants.
nationaldebtline.co.uk