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in England, how do students manage to pay fees and living costs?

(19 Posts)
ssd Sun 04-Sep-16 10:58:00

in Scotland our kids fees are paid and they can take out a student loan up to around £4-5k to help with living costs, depending on the family income

what do English students do if they arent getting help from family, are the student loans there available for higher amounts?

AndNowItsSeven Sun 04-Sep-16 11:04:45

Yes up to approx 8k.

titchy Sun 04-Sep-16 11:14:30

They do the same as Scottish students and take out loans. If you're only entitled to the minimum loan and your parents refuse to help you , you're in trouble, same as for Scottish students, and have to find time for a job as well as study.

The only difference between England and Scotland is the fees. for now

ssd Sun 04-Sep-16 11:33:26

but if course fees in England are £9k, why are the loans up to 8k?

LetitiaCropleysCookbook Sun 04-Sep-16 11:40:43

There are two separate loans - one for full tuition fees of £9K, and one for maintenance, which is what I'm assuming is the £8K max referred to?

anyname123 Sun 04-Sep-16 11:45:30

You pay the course fees after you graduate, so it is a loan but is repaid almost like a tax, a certain % of salary over whatever threshold. It would be foolish to pay course fees in advance as lots of people don't ever fully repay them anyway (according to Marine Lewis, I'm a bit in love with him). So the 8k is for living, the course fees get paid post graduation.

Coconutty Sun 04-Sep-16 11:46:14

Message withdrawn at poster's request.

Heratnumber7 Sun 04-Sep-16 11:46:53

Just to add that it's £9k PER ANNUM, and looking set to rise. Kids come out of university with huge debt these days. All wrong IMO.

titchy Sun 04-Sep-16 11:57:35

Yes two separate loans. One for fees, one for maintenance. So up to £17,500 a year.

LetitiaCropleysCookbook Sun 04-Sep-16 11:58:04

Naively, I didn't realise, until I went to ds1's 6th form meeting on financing university studies, that interest accrues on the loans from the start of the course until the last payment is made.

LetitiaCropleysCookbook Sun 04-Sep-16 11:59:34

Repayment, that should say, i.e. when the loan is paid off.

anyname123 Sun 04-Sep-16 12:05:49

Isn't it at the rate of inflation though, so in real terms nothing gets added on? Or have I completely misunderstood?

LetitiaCropleysCookbook Sun 04-Sep-16 12:23:08

I'm not sure, but that would only work if income increased with the rate of inflation, wouldn't it? blush Hopelessly ignorant about financial matters, so grateful for any simple explanations! Whatever the interest situation, it's a hell of a lot of money to owe, age 21.

boys3 Sun 04-Sep-16 12:27:15

always a useful starter, and definitely worth a read

HereIAm20 Sun 04-Sep-16 12:27:25

"You pay the course fees after you graduate, so it is a loan but is repaid almost like a tax, a certain % of salary over whatever threshold. It would be foolish to pay course fees in advance as lots of people don't ever fully repay them anyway "
re this - not strictly true the tuition is paid each year and your loan starts and interest accrues from day 1 pretty much - it's just the student doesn't start to repay until they are working and earning a certain amount.

BengalCatMum Sun 04-Sep-16 12:35:29

The interest terms and conditions depend on which Tier you are on.
I was in the last £3500 tuition fee cohort which I think is Tier 2.

We currently have an interest rate of: interest (more expensive one of CPI or RPI - can't remember which one it is, but know it was the opposite one to the lower pensions one; or Bank base rate - decided based on which ever is most expensive) + 1/2 or 3% depending on how much you earn.

So it is above interest for my tier, and it states the terms and conditions can be changed over time. So the 'terms' are essentially pointless, as someone could change them next week.

A friend who was doing finance in Dubai on graduation was stunned when I informed him of our terms & conditions. This clued up high flyer was so so shocked he couldn't believe it.

No one reads the T+C. Especially not a 17/18 year old being pressured by school, mum, friends that they all need to go to uni. And that it doesn't matter because everyone is in the same boat.

Read the T+C and if you can afford it... avoid at all costs.

The long maths indicated I will pay back 120,000 - 150,000 for a £30,000 loan over my lifetime.

anyname123 Sun 04-Sep-16 12:35:35

Letitia, the way it was explained to me is that whatever a bag of chips (for example) costs you today, you can still buy the bag of chips with whatever you pay back. Aaargh this is really hard to explain (someone very clever explained it to me in a way that makes sense), but yes I agree. I would hate to be in that much debt when just starting out, it does seem massively stressful

AndNowItsSeven Sun 04-Sep-16 13:22:08

Sorry op I meant the maintenance loan as you asked about living costs.

ssd Sun 04-Sep-16 13:27:37

thanks all

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