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Loans

September 2012 entry (UK/EU)

There are different funding options to help you pay your way through university. There are two different loans available to help you with your tuition fees and living expenses. You will only start repaying them once you have graduated and are in full-time employment earning £21,000 or over.

Tuition Fee Loan

The Government has announced major reforms to student finance. From 2012 English universities will charge up to £9,000 a year for course tuition fees. BU has chosen to charge between £6,000-£9,000 depending on the course. For specific information on the 2012 fees, please refer to the course of your choice in our Course Search system.

At the start of each academic year, full-time UK/EU undergraduate students (for full-time and part-time courses) may take out a loan to contribute towards their annual tuition fee. UK residents should apply online via Student Finance England.

EU residents should contact the European Team, at the Department for Business, Innovation and Skills on +44 (0) 141 243 3570 or visit: DirectGov

The Tuition Fee Loan is paid directly to the University by the Student Loans Company.

Please note: If you have studied in Higher Education previously this could potentially restrict the amount of fee and maintenance support available to you. Please check with Student Finance England or your awarding body.

Student Maintenance Loan

This loan is to help you with the cost of living whilst at University, for example day-to-day costs, such as accommodation, travel and domestic bills. All students who have been permanently resident in the UK in the 3 years prior to the course commencing are entitled to receive 65% of the total Student Maintenance Loan, the final 35% is based on your household income (means tested)*.

For students starting in 2012/13 the level of maintenance loan available will be assessed based on the parental income/household income. The level of loan available will range between £3,575-£5,500 and will be available for each academic year (except for placement). All students are entitled to a level of maintenance loan support, even those students from the very highest income background.

You can visit the online calculator on the Student Finance England website to find out your exact entitlement for the Maintenance Loan. The Student Loans Company usually pays your loan in three instalments (termly) directly into your bank or building society account. Loan rates vary slightly if you continue to live in the family home during your studies.

*Means testing relates to your family total household income. A student from a household income of £25,000 per year or less receives a full award. A student from a household income between £25,001 and £62,125 receives a partial award, and a student from a household income of over £62,125 would receive 65% maintenance loan only.

Please note: If you have studied in Higher Education previously this could potentially restrict the amount of fee and maintenance support available to you. Please check with Student Finance England or your awarding body.

What interest will I be charged on my loans?

During your study and up until the Statutory Repayment Due Date (the date you become eligible to repay your loan, in April after you graduate), interest will be set at the Retail Price Index (RPI), plus an additional 3%.

It is important to note that the amount you pay back each month will not be affected by the interest you are charged.

How are the repayments taken?

Repayments will commence in the April following graduation from your course and are earning £21,000 or over. You repay the loan at 9% of your earnings above £21,000. For example, at current interest rates someone earning £25,000 per year would pay £6.92 a week (£30 a month, or £360 a year). Graduates do not have control over how much they repay each month as it is control by the tax system.

There will be one repayment as the maintenance and tuition loans are combined. The repayment will be taken through the tax system, by using your national insurance number once you are earning £21,000 or over. It will show on your wage slip as a student loan repayment.

Repayment thresholds vary outside the UK and will depend on where you settle after graduation.

Any outstanding payments will be written off after 30 years.

Will student loan repayments affect my ability to take out a commercial loan?

This would be a decision for the loan provider, but student loan information won't be shared with credit reference agencies by Student Finance England.

Will loan repayments affect my ability to get a mortgage?

The Council of Mortgage Lenders has advised that a student loan is very unlikely to impact materially on an individual's ability to get a mortgage. The amount of mortgage available may depend on net income.

Applying for your funding

Student Finance England (and the equivalent authorities in Wales and Northern Ireland) have advised that students may apply for their funding from December 2011. They recommend that you apply for your support as early as possible so that they can make your financial assessment in good time.

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