What student loans are available for university? video transcript

Hello. My name is Rob Fowler.
I'm a Senior Student Money Advisor,
We'll be looking at everything to do with student funding and how to get that.

You can get support for your tuition fees via the Tuition Fee Loan.
So regardless of your household income and the level of household income,
every student will be entitled to the Tuition Fee Loan of £9,250.

There's a Maintenance Loan.
You may hear it referred to as the ‘living cost’ loan,
but that’s the Maintenance Loan.

If you're living away from the principal
home, you can get a maximum of £10,227 for academic year 24/25.
That's based on a household income of under £25,000.

The minimum loan that you can receive, is £4,767.
That's based on the higher threshold, which is a household income of around
£62,000.

If you're living at home,
so that's in the parental home and commuting to university,
you can get up to £8,610 as a maximum,
and £3,790 as a minimum.

If you want to get a good idea of what you're going to be entitled to,
while you're studying, you can go onto Gov.uk
and have a look at their student funding calculator.
And it will tell you very clearly and very quickly,
what your funding's going to look like.

So if you're under 25,
in the first instance, you’re classed as dependent, so dependent on parents.
So parents’ income is assessed.
The alternative to that is independent student status.
So students are assessed as independent
Students, mean that Student Finance England disregard parental income
and they assess the student on their own circumstances.

Because student funding is the same nationally,
it doesn't matter where you're going or what you're studying.
The student funding will essentially remain the same.
So apply on your best guess.
Student Finance England and will then assess your student funding
and that will be done.

Later in the application process,
If your university choices change, or if the university changes,
if the course changes, you can log back onto your account,
change the name of the university and/or the course. That will update overnight.
Your student funding won't change because it is the same wherever you go.

Apply early
and just be mindful that you don't need to have a confirmed place on a course
to apply for your student funding. So always apply for your funding first.

So student loans are all put together as one amount
that’s owing to the Student Loans Company.
So tuition fees and living costs over the period of study.
So say tuition fees and living costs over a three year period.

It's all put together into one repayable amount.
But you don't pay anything back until you're earning over £25,000 a year.
You'll pay 9% of your income over that threshold.

So 9% of any income over £25,000, you will pay,
to the Student Loans Company. It’s taken as stoppages through your wages.
So it will be taken before you get your wages into your account.
So even if you still owed 100% of the loans borrowed after 40 years,
that would all be written off once you reach that 40 years.

So up to £25,000, there is no repayment, you pay nothing back.
and then after that you pay 9% of your income.
So if we look at it, and try and keep it as simple as possible, if you're earning
£26,000, that means that you're earning £1,000 over the threshold.
So 9% of £1,000 is £90 a year, divided by 12 months of the year.
That's £7.50 a month.

£30,000, you'll pay £37.50 and so on.

So the more you earn, the more you will repay as a percentage of your earnings.

But, next to that, on that same income, you'll be paying about £290
a month in Income Tax and about £145 a month in National Insurance.

So the repayment of your student loan will normally and probably and actually,
be the least significant, of the stoppages that you will pay, when you're earning.

Try and work out a budget plan before you start university.
So you should be able to go on the calculator.
And even through your student funding application,
you will have a really good idea of what funding you're getting.

Open a student bank account.
Have a word with your bank,
see what benefits they can give you for opening a student bank account.
They will often give you an interest free overdraft.
So again, as a budgeting tool, that can be quite useful
having a couple of hundred pounds, just sitting there in the background
as a safety net, if you ever do go overdrawn.

There's loads of information on the university website about cost of living.
So there's tips for budgeting, getting through the cost of living crisis.

The bottom line is don't panic.
It can seem overwhelming.
It can seem like there's so much to do.
You've got to think about your studies, about the course.
You've got to think about your funding and the application.
Don't be overwhelmed by it.

When it comes to student funding, you're applying for two loans,
you're applying for a Tuition Fee Loan and a Maintenance Loan.
It's a single point of application.
Realistically, it shouldn't take your more than about an hour
to do the full application, even if you've never seen it before.

So, don't be overwhelmed.
Don't panic.

Any questions, any queries at any time,
Email us: smart@derby.ac.uk

What student loans are available for university? video

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