Student Loans and Grants

Tuition costs continue to rise faster than salaries, causing the government to have to provide greater levels of assistance through special programmes and low cost financing. Getting help with paying for your tuition can be a little easier with the Student Finance application. The goal of this service is to help you obtain low interest rate loans or alternative financing, such as grants. The funds issued can be used to help pay tuition while at university. These government  programmes are wide ranging and are available to all English students.

Types of Grants Available

Maybe the most commonly requested is the Maintenance Grant. For those that qualify, it can handle a big chunk of your college costs. The advantage is that you can obtain money to cover living expenses while you are a full-time student. The government pays your bills, rent, and other costs so that you can focus on your studies.

There are some disadvantages to this though. One of the biggest disadvantages of the Maintenance Grant is that it reduces the amount of other government assistance that you would qualify for. That is hardly a big deal though, since you still receive the same amount of funding and do not have to repay the grant.

Lower income households who are either receiving or qualify for Housing Benefit or some other type of Income Support may be able to qualify for help from the Special Support Grant. So this government programme tends to be for very low income families and the most vulnerable. This is similar to the Maintenance Grant in that the funds can be used to pay a variety of living costs and everyday bills while enrolled at university. Another benefit of this is that as a grant, you never have to repay the funds that you receive.

Another one of the major benefits of the Special Support Grant over the maintenance option is that there is no reduction in the amount loans that a student may qualify for. So this means that the borrower can receive more than one source of funds for all of their university costs and living expenses. So students can still use the Maintenance Loan even when they qualify for these grants. This can especially be an advantage for students who have a disability.

There are national charities that provide grants to students. The funds can be used to pay for different types of costs, such as fees, books, a portion of tuition, or other educational expenses. Eligibility criteria have been set by each programme and some organisations will offer assistance to students on a low income, such as the Thomas Wall Trust grants, or they may provide help to high achievers. Students or people looking for new skills should look into receiving help from charities.

Grants from Sir John Sumner’s Trust are for students enrolling into medical classes. Funds can be issued for people pursuing a nursing or veterinarian degree, or for someone in medical school that is trying to become a doctor. Find more information on what educational costs can be paid by the grants from the Sir John Sumner’s Trust.

Bursaries

Additional funding may be provided if you are awarded bursaries while you are attending college or enrolled in a training course or unpaid apprenticeship prior to the age 20. For those that are not familiar with these, bursaries can cover some educational costs and do not require repayment.

Types of Loans for Students

As indicated above, many of the grants can be used to help pay living costs. However, that is not the only option available to students. They can also apply for the Maintenance Loan, which is offered for the same purpose. The bad news is that you must repay all proceeds received as part of this. So this is one of the key differences between using a loan vs a grant. While the terms can change, interest costs of up to 3% above the rate of inflation are added.

The Maintenance Loan repayment schedule is based on your income. There are some benefits to low income families and borrowers. For example, if their income drops below £21,000 then no monthly payment is demanded. On the other hand, higher income households may need to pay more money back in less time. Most lenders will require a the borrowers payment to accelerate and they will need to pay down the balance in less time.

As part of the Tuition Fee Loan, the government will pay a share of costs. The process tends to be more streamlined. What will happen is that payment is submitted directly to your college or university. You will be required to repay these amounts after graduation.

Tuition Fee Loans are available for both full-time and part-time students. The amounts that you may receive depend on whether the school is public or private. The government will also establish some of these terms on an annual basis. In some situations, part-time students may begin repayment while still enrolled in classes.

The Income Contingent Loan will offer some different payment plans and schedules. These will also apply to those who use the Tuition Fee or Maintenance Loans described above. The repayment schedule will depend on different factors, the most important being your income. Students who attended college or university in England must repay their loans according to Income Contingent Repayment Plan 1 if they began classes prior to September 2012. Newer students will use Income Contingent Repayment Plan 2.

There are other resources available as well. For more information on loans that are available to students, government grants or to get assistance with repayment, be sure to explore all resources that are offered. You may also want to contact the Student Loans Company.

Regional Education Grants

Some communities are blessed with the backing of benefactors who pledge trusts to assist with education costs. Some funds are used for supplemental costs for schoolchildren, such as uniforms or supplies. Others help to pay university costs.

One example is the support provided by educational trusts in Wrexham. Grants range from £50 to £750 for local residents that need help with the costs of learning.

Northern Ireland universities have support funds for students. There may be financial aid available for the payment of unexpected bills, and some colleges will even provide assistance with more common living expenses such as rent or transportation. Any funds in Northern Ireland are only for young people from low income households with little savings, and the application process varies by university. Read more Support Funds in Northern Ireland.

Many communities are supported by businesspeople and successful citizens who want to give back to the people that live where they lived. For someone without the means to pay for university, this support can be a welcome surprise.