The cost of higher education will be important to both you and your child. Fortunately, there's plenty of information about student finance available; this page covers the main things to consider.
The cost of university
All UK universities charge for course tuition (known as the ‘tuition fee’). Students based in the UK pay the same tuition fee; overseas students pay a different scale of tuition fees. BU’s tuition fees are published on our course pages.
Tuition Fee Loan and Maintenance Loan
All eligible UK students can get a loan from Student Finance England for the full cost of their course, as well as a Maintenance Loan. The amount your child receives will depend on your household income.
The amount your child needs to borrow to study at university may seem daunting, but it is important to remember that they do not need to start repaying it until the April after they have graduated and are in a full-time job earning £25,000 a year, £2,083 or £480 a month or more (current figures). They will repay 9% of their income over the repayment threshold. The interest rate will normally be set at RPI only.
Applying for a Tuition Fee Loan and Maintenance Loan
Student loans can be applied for via the relevant funding body by filling in an online application. Your son our daughter doesn’t need to have been accepted on a course or made a firm decision about where they'd like to study when applying for funding - you can use the details of the course they're most likely to attend initially and can amend this at a later date if needed.
- Student Finance England
- Student Finance Wales
- Student Awards Agency for Scotland
- Student Finance Northern Ireland
It is advisable to apply for student finance as early as possible to ensure your child receives their loan at the start of the academic year. The deadlines vary each year, so you should check the relevant funding body’s website for specific details.
You can apply for student finance after the deadline, but if you do this there is no guarantee the funds will be available at the start of term.
Repaying Student Loans
Repayments will not be taken until your child has graduated and are in a full-time job earning £25,000 or more (current figure). They will start repaying their combined loan amount automatically in their salary, like a tax, (by HMRC) in the April following graduation or leaving the course, only when they earn over the threshold.
If any amount remains after 40 years, it is written off.
Student loans are not taken into consideration when applying for other finance, such as a loan or mortgage.
Budgeting with your son or daughter
This will probably be the first time your child has had to take control of every aspect of their finances. It’s worth taking a bit of time to talk them through the basics of budgeting to help them keep on top of their money once September rolls around.
Although a lot of expenses - including utility bills and internet costs - will be included in the price of their rent if they are staying in university accommodation, they will still need to budget for food and other day-to-day expenses, as well as having fun. You can find more information on budgeting in the fees and funding section.