Student Finance and Budgeting
You might already be aware that there is a financial cost to higher education but ultimately you might want to see it as an investment into your future.
Initially, this cost can put many prospective students off the idea of progressing into higher education. For example, you may not be sure how to pay for higher education or how you’ll be able to manage financially during your studies.
There are some myths surrounding Student Finance but don’t worry, by covering this theme we will demystify common misbeliefs and showcase the range of financial support available for you.
Something to watch
For many students, going to university or college is the first time they will have to budget and manage their own money. Everyone has a different way of balancing their income and their spending, so we asked 3 students at York St John University for their budgeting top tips. Can you think of another tip that you could add to this list?
Something to read
Information correct at the time of writing: June 2021
There is a cost to studying at university because you will have to pay course fees, as well as any living costs which can vary depending on the individual. The cost of studying an undergraduate degree is currently £9,250 per year.
Living costs can vary due to a number of different reasons - whether you choose to move away from home to study or commute, the town / city you choose to study in and any extra course costs such as course trips or supplies are just some of the factors which will impact your living costs. The cost of studying at higher education can be daunting for some students but there is support in place to help you pay for these costs, such as Student Finance.
Student Finance is a loan you can get that will help you cover the cost of your course as well as living expenses. The loan is split into two: a Tuition Fee Loan to cover the cost of your course fees, and a Maintenance Loan to help cover your living costs such as accommodation, travel and food.
- You can borrow up to £9,250 per year to cover the cost charged by a university or college for your course
- The loan is paid directly to your institution
- You can apply for a maintenance loan to help you with living costs whilst studying
- The amount you receive is dependent on where you live, study and your household income. For example, the more your household earns, the less you will be entitled to borrow
- Unlike the tuition fee loan, this money is paid directly to you in 3 installments each year
Repaying your loan
You don’t have to start paying your student loan immediately after you gradtuate and the responsibility of repaying it will not fall to anyone else if you don’t.
When you start repaying your loan, and how much you repay, is dependent on how much you earn. You won’t start repaying your loan until you are earning over £27,295. You repay 9% of anything you earn over £27,295, look at the table below to see how this works. After 30 years, the loan is written off and you won’t be expected to pay it back.
What is Budgeting?
As you’ll be in charge of your own finances, budgeting is a skill which you will need to use throughout your time at university. You will get your student loan in 3 payments through the year; September, January and April. Your expenses will include rent, bills and food and you will need to consider how much you might spend on social activities.
But what exactly is budgeting? It's about organising, planning and managing your finances. Budgeting ensures you're not spending more than you have.
Something to do
Basketing budgeting
There is a lot of independence that comes with being a student. It is important to look after yourself by making sure you are staying healthy, buying your own food and eating well. Now is your chance to step into the shoes of a student and do your first student food shop! Your task is to top up on essential food items and get some snacks for a film night with your flatmates at the weekend.
Complete the activity below to help you start thinking about what types of items you may like to buy and how much you would feel comfortable spending.
Student finance ‘fact or myth’
This activity is all about the myths that surround Student Finance, complete the quiz below!
Student finance 'fact or myth' quiz
Jargon buster
This activity looks at some of the key terms surrounding Student Finance. Complete the quiz below!
Something learned
Hopefully after reading the information, hearing from our current students and their experiences, as well as completing some activities, you have a better understanding of the cost of higher education, the support available and how to manage your money while studying.
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