Extra financial help may also be available through a bursary. Bursaries can be provided in a variety of ways, such as payments into a person’s bank account or as a discount on accommodation costs and don't have to be paid back.

Publicly-funded universities charging full tuition fees have to provide students with a bursary if they’re receiving the full Maintenance Grant or Special Support Grant.

Scholarships and Awards

Some universities and colleges in Britain offer scholarships based on an individual’s income, A-level results or on other criteria. Extra financial aid may also be awarded to those entering higher education by some charities and educational trusts.

Any money received through a bursary, scholarship or award does not need to be repaid.

Maintenance and Special Support Grants

In addition to Student Loans, full-time students may also be able to get a non-repayable Maintenance Grant or Special Support Grant, worth up to £2,765 a year, to help with tuition fees, accommodation and other living costs.

As with student loans, the amount received depends on the residual income of the student or their parents.

Special Support Grant

In order for a student to qualify for the Special Support Grant, they must meet certain criteria, during the academic year, for being a ‘prescribed person’ under the Income Support or Housing Benefit Regulations. Students who are likely to qualify include:

• Single parents
• Other student parents if they have a partner who is also a student
• Students with certain disabilities

Receiving the Special Support Grant does not affect how much an individual can get through the Student Loan for Maintenance and it is not counted as income when working out if the individual is entitled to income-related benefits or tax credits.

Students should contact their local authority if they are unsure over which grant to apply for.

How are they paid?

Grants are usually paid in three instalments (one for each term) straight into a student’s bank account by either Student Finance Direct or the Student Loans Company (SLC) alongside the maintenance loan.

Part-time work

Although loans are the most popular choice of financial help for people entering higher education, applying for part-time work can also be beneficial. The extra income can be used to pay rent and other expenses or simply as ‘spending’ money.

There is usually a good supply of part-time work local to university campuses and colleges. Most universities offer services to help students find suitable part-time work in and around the area during term-time and vacation periods.

Loan Repayment

Students are required by the Student Loans Company (SLC) to repay their student loan from the April they graduate/leave University at a rate of 9% of anything earned above £15,000 per annum. This basically means that unless an individual earns above £15,000 a year once employed they will not be asked to pay back the loan. However, students can make additional voluntary payments at any time to help clear their debt amount.

If a student fails to finish their course for whatever reason, they willstill be required to pay fees for that year and repay any loans taken.

Repayments are collected straight from an employer’s payroll by HM Revenue & Customs in the same way as income tax and NICs, and continue until the loan is fully paid off. After a period of 25 years, any outstanding debt may be wiped off a person’s record.

In addition to being a cheap form of loan, student loans are also set apart from all other types of debt as they are not added to an individual’s credit reference files and therefore do not have much of an impact on their financial future.

Applying

Applicants are advised to apply for a student loan as early as possible, or within the first four months of their course. Applicants need to fill out an LEA form or risk being charged higher tuition fees and being prevented from applying for a student loan.

Any offer received (even if conditional) should be completed and returned immediately. Applicants will then be sent back an Eligibility Notification, which informs them of what help will be given for their tuition fees and what loan is available to take.

In addition, applicants will also receive a financial form, which must be completed by them or their parents and returned as part of their student loan application. Their LEA will then respond with a financial notification, which will inform applicants of:

• How much their parents are expected to contribute towards their university fees
• The maximum student loan that can be taken