Student finance has gotten pretty complicated in the past year, but Scholarship Search is here to help you find your way through the financial maze, and to make sure you have all the information on student funding that you could possibly need. If you live in the UK and are going to university in 2012 to study for your first degree full-time, you are eligible for a student maintenance loan to fund your studies, which you have to pay back once you start earning over £21,000 per year.

Student finance has gotten pretty complicated in the past year, but Scholarship Search is here to help you find your way through the financial maze, and to make sure you have all the information on student funding that you could possibly need. If you live in the UK and are going to university in 2012 to study for your first degree full-time, you are eligible for a student maintenance loan to fund your studies, which you have to pay back once you start earning over £21,000 per year.

Maintenance Loans and Maintenance Grants - The Facts

Posted in Undergraduate Finance Advice

 

Student finance has gotten pretty complicated in the past year, but Scholarship Search is here to help you find your way through the financial maze, and to make sure you have all the information on student funding that you could possibly need. 

If you live in the UK and are going to university in 2012 to study for your first degree full-time, you are eligible for a student maintenance loan to fund your studies, which you have to pay back once you start earning over £21,000 per year.  If you come from a low-income family, you may also be eligible for a grant (which you don’t have to pay back).  The amount of money you receive is dependent on a few factors, including where you live and where you’re going to study, and the amount that you have to pay back depends on how much you (or your parents) earn per year. 

Student Maintenance Loans

The Student Finance organisation in your country will lend you money to help you pay for your living costs (like rent, food and transport) at university.  The maximum amount you are eligible to receive every year varies depending on where you live and where you study.  In 2012, you can borrow up to £7,675 per year.   

Where you live and go to uni

Maintenance Loan

Living at home

£4,375 per year

Living away from home, studying anywhere except London

£5,500 per year

Living away from home, studying in London

£7,675 per year

A year abroad as part of a UK course

£6,535 per year


Your loan is paid into your bank account in three instalments, one at the start of each uni term.  The maintenance loan is not designed to last you over the summer holidays, so you’ll need to get a job or live off someone generous during the summer months. 

Student Maintenance Grants

Things get slightly more complicated for students from low income families (good complicated, not bad complicated).  If your total household income is less than £42,600 per year, you’ll borrow a bit less from the government, and you’ll receive some a dditional money in the form of a non-repayable grant.  If it helps, think of your maintenance grant as a chunk of ‘free’ loan that you don’t need to pay back.    

Total Household Income

Maintenance Grant (non-repayable)

Maintenance Loan (repayable)

Total you receive per year

£25,000 or less

£3,250 per year

£3,875

£7,125

£30,000

£2,341 per year

£4,330

£6,671

£35,000

£1,432 per year

£4,784

£6,216

£40,000

£523 per year

£5,239

£5,762

£45,000

£0

£5,288

£5,288

£50,000

£0

£4,788

£4,788

£55,000

£0

£4,288

£4,288

£60,000

£0

£3,788

£3,788

Over £62,500

£0

£3,575

£3,575


Example 1

You’re leaving home to go to uni in London, and your parents earn a total of £34,000 per year between them. 

This means you are eligible for £7,675 per year as a maintenance loan, but you won’t have to repay part of that (£2,431).  The amount you’ll actually be borrowing every year (and paying back after you graduate) will be £7,675 - £2,431 = £5,244 per year.

Example 2

You’re living at home and studying at a local university (not in London), and your household income is £50,000 per year. 

You are eligible for a maintenance loan of £4,375 per year, and you won’t receive a maintenance grant as your household income is relatively high. 

Example 3

Your annual household income is £0, and you’re going to leave home to go to university elsewhere.  You are eligible for the highest maintenance grant of £3,250, and your maintenance loan will be £5,500, so the amount you’ll pay back eventually will be £5,500-£3,250 = £2,250 per year. 

Tuition Fees

As well as your maintenance loan, your tuition fees will be paid directly to your university by the student loans company.  The amount you pay in fees will depend on the amount your university charges.   Read about how much tuition fees cost, and why they’ve gone up for 2012.

Student Loan

The total amount you borrow is made up of both your tuition fees and your maintenance grant for three or four years, depending on the length of your uni course.  You won’t start paying this money back until you’ve graduated, and are earning at least £21,000 per year.  Read about repaying your student loan here, or search for a scholarship now to find student funding to reduce the cost of your university education. 

 

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£3,788

£3,788

Over £62,500

£0

£3,575

£3,575


Example 1

You’re leaving home to go to uni in London, and your parents earn a total of £34,000 per year between them. 

This means you are eligible for £7,675 per year as a maintenance loan, but you won’t have to repay part of that (£2,431).  The amount you’ll actually be borrowing every year (and paying back after you graduate) will be £7,675 - £2,431 = £5,244 per year.

Example 2

You’re living at home and studying at a local university (not in London), and your household income is £50,000 per year. 

You are eligible for a maintenance loan of £4,375 per year, and you won’t receive a maintenance grant as your household income is relatively high. 

Example 3

Your annual household income is £0, and you’re going to leave home to go to university elsewhere.  You are eligible for the highest maintenance grant of £3,250, and your maintenance loan will be £5,500, so the amount you’ll pay back eventually will be £5,500-£3,250 = £2,250 per year. 

Tuition Fees

As well as your maintenance loan, your tuition fees will be paid directly to your university by the student loans company.  The amount you pay in fees will depend on the amount your university charges.   Read about how much tuition fees cost, and why they’ve gone up for 2012.

Student Loan

The total amount you borrow is made up of both your tuition fees and your maintenance grant for three or four years, depending on the length of your uni course.  You won’t start paying this money back until you’ve graduated, and are earning at least £21,000 per year.  Read about repaying your student loan here, or search for a scholarship now to find student funding to reduce the cost of your university education.