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Students & Money

Everyone knows that it’s tough going to survive on student money. You need to make sure that you get all the financial help you're entitled to. If you are unsure what you can claim or are having financial problems, speak to the Connexions Personal Adviser or Student Welfare Services in school or college.

Staying on at school or college at 16 is free unless you go to a fee-paying school. But there are still a number of ways you may be able to get extra money.

You can apply for an Education Maintenance Allowance (EMA) of up to £30 a week depending on how much your parents earn. To find out how to apply, visit their website above or call the EMA helpline on 0808 1016219.

Watch the Education Maintenance Allowance (EMA) Movie

If your family doesn’t have much money coming in, you may also be able to get money through your Local Education Authority (LEA) from the Learner Support Fund (sometimes called the Access Fund). This can help with the cost of books, equipment, transport, fees & childcare. The Support 4 Learning website explains what funding you may be entitled to, or you can speak to the Student Finance department for your LEA (telephone numbers in our A-Z Directory).

If you are not eligible for EMA the Educational Grants Advisory Service may be able to give support. They have an Online Funding Search for students to check whether you are eligible to apply for other funding.

For student finance advice from a money expert visit Money Saving Matters for student finance advice. There is also advice available for parents of students produced in collaboration with the Department for Education and Skills.

The students’ charity, UNIAID, has developed an online student finance learning tool, called ‘All About U’, to help 16-19 year olds prepare for the challenges of university life. ‘All About U’ gives users a virtual experience of one year at university. It provides a series of scenarios which mirror the challenges and decisions they will have to make at university, to balance their time, money, academic goals and social lives. The programme can be played individually online or be incorporated into workshops for students, parents, carers and advisers. Visit All About You for more information.

Higher Education

If you’re an eligible student doing a full-time higher education course, you can take out a Student Loan for Tuition Fees to cover your tuition fees and a Student Loan for Maintenance to help with your accommodation and other living costs.

Student Loans are there to help with the costs of higher education. They’re issued by Student Finance Direct, a service managed by the Student Loans Company in partnership with local authorities and the government.

The interest on Student Loans is linked to the rate of inflation, so in real terms what you repay will be broadly the same as what you borrowed.

There are two types of loan available - you can take out either or both:

a Student Loan to cover your tuition fees - called the ‘Student Loan for Tuition Fees’
a Student Loan to help with your accommodation and other living costs - called the ‘Student Loan for Maintenance’

Student Loan for Tuition Fees

All eligible full-time higher education students entering higher education in or after September 2006 can get a Student Loan for Tuition Fees.

The loan will cover any amount up to the full amount you’re charged for tuition fees. For new students - and most that started in 2006/2007 - this means:

up to £3,145 in 2008/2009
up to £3,070 in 2007/2008

The Student Loan for Tuition Fees is paid directly to your university or college by Student Finance Direct.

Student Loan for Maintenance

The Student Loan for Maintenance is there to help towards your accommodation and other living costs while you’re studying. The maximum loan for 2008/2009 is £6,475. For 2007/2008, it’s £6,315.

Student Finance Direct will usually pay the money into your bank account in three installments - one at the start of each term.

How the Student Loan for Maintenance works

All eligible full-time students can get a Student Loan for Maintenance, but the exact amount you can borrow will depend on several factors - including your household income, where you live while you’re studying and whether you’re in the final year of your course.

It’s also affected by any help you get through the Maintenance Grant (though not the Special Support Grant).

Working out whether you can get the maximum loan

You can take out around 75 per cent of the maximum Student Loan for Maintenance regardless of your household income - this is called the 'non income assessed' part of the loan.

Whether you get the remaining 25 per cent - the 'income assessed' part of the loan - depends on your household income.

A guide to student loans 2008-2009

A guide to higher education financial support 2008-2009

Extra Funding Options

You may also want to consider alternative sources of funding, such as a hardship loan which you can apply to the Student Loans Company for. This could amount to anything up to £500. Many students also turn to part-time to work to fund their studies.

Student Bank Accounts

It's important to choose the right bank for you when going to university. If you know where you are going to study then look at which banks have branches there and see what services they offer. Find out the important bits such as how big the overdraft facility is likely to be and does it increase each year? Make sure that the bank has Internet Banking - it will make managing your money so much easier.

Student Costs Breakdown

The cost of basic student life varies from town to town and from college to college. There are always certain expenses for which you have to plan ahead for, such as rent, bill, food and other groceries, tuition fees, books and equipment, stationery and photocopying, going out, travel costs, clothes, phone and internet bills, insurance and interest & fines on bank accounts and in the library. It's just a question of finding that healthy balance for student spending. The priorities are paying bills and rent but that doesn't mean you can't splurge once in a while on a new top or a couple of CD's.

Page updated: Tuesday, June 24, 2008 10:43 AM