Thousands of students will be picking up their A-Level results today - but what financial help is available to those who are off to university?
You might be feeling worried about the financial aspect, as the cost of living crisis continues to deepen.
The good news is, you might be eligible for cash grants or other support to help you while you study - we explain below.
It comes just days after the Government confirmed the cap on interest rates for student loans in England and Wales is being cut to 6.3% from September.
It was due to rise to 7.3% after the Institute for Fiscal Studies (IFS) warned students could end up paying up to 12% interest.
But the new rate is higher than the current 4.5% being paid by graduates.
These figures affect students with Plan 2 (undergraduate) and Plan 3 (postgraduate) loans in England and Wales.
You’ll be on a Plan 2 repayment plan if you started an undergraduate course on or after September 2012.
Check what grants could be available to you
There are lots of different types of grants out there - so it is important to check what you could be entitled to.
For example, if you have a child or dependent adult, you might be entitled to:
Childcare Grant - up to £183.75 a week for one child, or up to £315.03 a week for two or more children
Parents’ Learning Allowance - between £50 and £1,863 a year.
Adult Dependants’ Grant - up £3,263 a year
You might also be eligible for a grant if you have a disability, long-term health condition, mental health condition or specific learning difficulty.
The grant you might be able to claim is:
- Disabled Students' Allowance - up to £25,575 a year
Also check the Turn2us website to check for other grants in your area.
Maintenance grants have been scrapped for new students in England – however, they're still available for those who started on their course before August 1, 2016.
You do not have to pay the grant back, but it will reduce how much maintenance loan you'll get.
Grants are still available in other parts of the UK.
Check if you’re eligible for extra money from your university
You might be entitled to extra money from your university or college - for example if you’re behind on your bills.
You could be eligible if you are:
A student with children, especially single parents
A mature student with existing financial commitments
From a low-income family
Disabled
A student that was previously in care
Homeless or living in a foyer
The amount you can get is decided by your university or college - speak to its student services department for more information.
You normally don’t have to pay the money back if the cash is being awarded as a grant.
Some universities might offer loans instead - so you would need to pay this back.
Check if you can claim benefits
If you’re on a low income and studying, you might be eligible to claim benefits, such as Universal Credit.
It only takes ten minutes to use a free benefit calculator online.
Some of the most popular online calculators include ones from Turn2us, Policy in Practice and entitledto.
You will need to answer questions about your financial and living situation, as well as your employment.
When do I pay back my student loan?
Universities and colleges in England can charge a maximum tuition fee of £9,250 per year.
If you study in Wales, you'll be charged up to £9,000 per year.
Universities in Scotland don't charge tuition fees to students from Scotland - but if you're from England, Wales and Northern Ireland, you'll pay up to £9,250 per year.
Universities in Northern Ireland will charge a maximum of £4,395 per year to Northern Irish students, and up to £9,250 for students from England, Wales and Scotland.
You only start to repay your student loan once you earn a certain amount - this threshold is changing for those with Plan 2 and postgraduate loans.
Here is how it breaks down, based on each student loan plan. You can see what plan you're on here.
Plan 1 student loan: Repay when your income is over £20,195 a year. You currently pay interest of 1.5%.
Plan 2 student loan: Repay when your income is over £27,295 a year. This is being lowered to £25,000 for new students starting university in September 2023, but the cap for how long you have to pay off your loan is rising from 30 years to 40 years. For students already at university and those starting this year, the £27,295 threshold has been frozen until 2026/27. You currently pay interest of 4.5% but this is rising to 6.3% this September.
Plan 4 student loan: Repay when your income is over £25,375 a year. You currently pay interest of 1.5% on Plan 4.
Postgraduate student loan: Repay when your income is over £21,000 a year. You currently pay interest of 4.5% but this is rising to 6.3% this September.
You pay 9% of the amount you earn over the threshold for plans one, two and four, and 6% of the amount you earn over the threshold for a postgraduate loan.
