Top-up fees
September 2006 saw the introduction of top-up fees - a controversial new system for full-time UK undergraduate students.
What are top-up fees?
Top-up fees 'top up' what universities receive from the capped fee (currently £3,000) to a figure that is said to represent the actual cost of providing the course. The Government says this is approximately four times the capped amount.
The changes mean that you won't have to pay fees up front at the start of each university year. Instead, fees of up to £3,070 a year (academic year 2007/8) are paid back after you graduate through loan repayments once your annual income passes £15,000. Repayments will be a minimum of 9% of all earnings over that figure of £15,000 per year and have to be paid from the April after you finish your course.
James, a 19 year-old business student at Huddersfield University, decided not to take a gap year and instead started university in September 2005. Personally I was gutted I couldn't take a gap year," he says. "I planned to travel the UK and parts of Europe but it all fell apart when I found out it would cost me an extra £10,000 for a four year degree. Now I'm happy I started now. I plan to travel a bit after my degree but it won't be until at least June 2009!"
How much will it cost you to study?
Students will pay different costs depending on the following:
- Where you live;
- If you live at home or in university accommodation;
- What university you choose to go to;
- Your household income;
- Your personal circumstances. (See the section on financial support)
What help is available?
Your dreams of new-found independence, hours spent in the student union and that all important degree don't have to be dashed. You may be entitled to financial support from the Government, as well as your uni or college.Financial support will apply if:
- You have special needs or a disability;
- You have children, especially single parents;
- You have been in care;
- You are from a low-income family you may be eligible for a further £300 a year in additional support;
- There is also extra help available (Access to Learning funds) after you've started your course if you encounter a financial hardship or crisis, or if you are thinking of giving up because it's costing you too much to study.
Your college or university decides whether you are able to get any added help, depending on your circumstances.
Will I be eligible for financial support?
Maintenance Grant
New full-time students from lower income households will be eligible to receive a new (non-repayable) Maintenance Grant, worth up to £2,765 a year. The actual amount you will be entitled to receive will depend on your household income. This grant will be paid in three installments, one at the start of each term, just like your student loan.
- Household residual income of less than £17,910 or less: student receives full grant.
- Household residual income of £17,911 - £38,330: student receives part of the grant.
- Household residual income of more than £38,330: student receives no grant.
It's good news if you're applying for university for the academic year 2008/9, or if you deferred entry from 2007/08. The Secretary of State for Innovation, Universities and Skills has announced wider access to Maintenance Grants.
This means:
- You will receive the full grant if your household residual income is £25,000 or less;
- You will receive a partial grant if your household residual income is between £25,001 and £60,000;
- You will receive no grant if you're household residual income is over £60,000.
Bursaries
Universities and colleges charging more than £2,765 a year for a course will be required to provide additional non-repayable financial support, such as bursaries, to students who are receiving the full £2,765 maintenance grant. This means students who receive the full maintenance grant and are being charged the maximum fee of £3,070 a year will receive at least £300 a year in additional financial support from their university or college. Some students may be entitled to more than this.
Student Loan for Maintenance
If you're eligible to get the maximum student loan for maintenance, you will get £3,495 a year if you live at home, £4,510 if you live away from home and outside London, and £6,315 if you live away from home in London. The Student Loan for Maintenance is usually paid straight into your bank account by Student Finance Direct in three installments at the start of each term. Repayments are due from the April after you leave your course and you have to repay 9% of your earnings over £15,000.
What are the advantages of top-up fees?
- You don't have to worry about paying back the loans until after you graduate when you're earning an annual income of over £15,000.
- There are no upper age limits for students' loans for fees.
- You may be eligible for financial support, such as bursaries and grants, if you're from a low income household.
What are the disadvantages of top-up fees?
- The fees will mean larger debts on leaving university, especially if you're studying for more than three years.
- If you are studying science and engineering courses you may need to pay more because these are the most expensive courses that run due to the equipment that is needed.
- Some people argue that the system will lead to a two-tier university structure. They believe poorer students won't be able to go to the best universities or study highly sought after courses such as medicine.
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