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Latest Student Grant Information

Posted on Tue, 23 May 2006 10:04:22

Free Financial Support Now Available to Half of England’s Students

Government urges students to take full advantage of non-repayable funding

The Government is today urging all students in England moving into higher education in September 2006 to investigate what financial support they could be eligible for and apply now.

Under the new package, available from September 2006, students can apply for non-repayable grants of up to £2,700 per year which are calculated on their household income. We expect that around half of new full-time students will benefit from these grants. Students can also gain further financial support from universities and colleges in the form of non-refundable bursaries. This means that students paying the full £3,000 in tuition fees and in receipt of the full maintenance grant of £2,700 would receive a minimum bursary of £300, totalling over £8,000 in non-repayable support for a three year course.

Higher Education Minister Bill Rammell said: "This year we have introduced a much fairer system to support students going into higher education, including a greater level of non-repayable funding in the form of grants and bursaries. This extra financial assistance has been designed to ensure that higher education is more accessible for all, regardless of family income or background and I hope a broader proportion of people will now be able to enjoy the benefits that going to university brings.”

"It is now vital that prospective students and their parents take full advantage of the new financial support package and submit their applications now."

Students can also apply for loans to cover tuition fees and living costs - these are not like commercial loans, but are linked directly to the rate of inflation - and students don't repay any loans until they're in work and earning more than £15,000.

Non-repayable Maintenance Grant - Student Fact Sheet

The facts below are designed to give you a greater understanding of the non-repayable financial assistance now available so read below to find out what extra help might be available to you.

What are non-repayable grants?

From September 2006 higher education students, from lower income households, could be eligible for a non-repayable maintenance grant of up to £2,700.
This is free source of financial support supplied by the government.

Do you qualify?
Full-time Students:

It is expected that around half of all full-time students are likely to be eligible for a full or partial grant.
Those whose parents have an income of £17,500 or less will qualify for an annual maintenance grant of £2,700.
Partial grants are available for those students with a household income of between £17,501 and £37,425.

Part-Time Students:

Part-time students, studying more than 50% of a full-time course can also apply for financial help. For instance, those studying 75% or more of a full-time course, may be eligible for non-repayable support of up to £1,125 in the form of the fee grant.
Eligible part-time students can also apply for a course grant of up to £250.
Additional support is also available to eligible students in the form of the Access to learning Fund.

How much can you get?

Non-repayable maintenance grants of up to £2,700 per year are available to students from lower income households. This can equate to more than £8000 over the duration of a typical 3 year degree.
How much a student will receive will depend on their income and that of their household.
Students will therefore be means tested on the basis of family income.

How to apply?

Students are able to apply for the new maintenance grant support once course applications forms have been submitted.
Students only need to fill out one application form to cover the non-repayable maintenance grant, the tuition fee loan and the maintenance loan.
Paper applications opened in March 06; online applications opened in April 06.
The form (Form PN1) is available from local authorities or you can apply online through www.direct.gov.uk/studentfinance

When to apply?

New students applying for means tested support need to apply before 30 June 2006 to ensure that monies are cleared in time for the start of your first term of your course.
Application forms for the part-time fee and course grants will be available from August 2006.
A new application will need to be made each year.

How is it paid?

Non-repayable maintenance grants will be paid in three instalments, one at the start of each term. Payments are made directly into the student's bank account.

Where to get more information

Please visit - www.direct.gov.uk/studentfinance.

Additional financial support:
Student Loan for Fees:

From September 2006, universities and colleges offering higher education courses in England will be allowed to charge up to £3,000 per year to all new students. Students can apply for the new Student Loan for Fees to cover the cost of these fees.

Student Loan for Maintenance:

Student loans to help with living costs are also available.

Repaying the Loans

The loans are totalled and students then repay the fee and maintenance loans once they have left university, are in employment and are earning over £15,000 per year. Repayments are linked to how much students earn not how much they owe. So someone earning £18,000 would pay back 9% on earnings over £15,000. That equates to £5.19 per week.

The table below shows the maximum maintenance loans available:

2006/07	Student living at home	Student living away from home, in London	Student living away from home, outside London
Maximum Full Year loan rate:	£3,415	£6,170	£4,405
Maximum Final Year loan rate:	£3,085	£5,620	£4,080

Bursaries:

Universities and colleges charging more than £2,700 a year for a course are required to provide additional non-repayable financial support, such as bursaries, to students who are receiving the full £2,700 maintenance grant. The students that receive the full maintenance grant, and are being charged the maximum fee of £3,000 a year, will receive at least £300 a year in additional financial support from their university or college in the form of a bursary. The amount of financial help will depend on the university or college. Some are offering much more so students should speak to the university or college that they wish to attend. Some universities and colleges are also offering bursaries to all students, so it's worth investigating as you may benefit.

EXAMPLE: Full-time Students: the help they'll get each year if they are studying outside London and living away from home.

Household income	£17,500	£25,000	£37,425	£50,000
Maintenance grant (Non repayable support)	£2,700	£1,450	£50	Nil
Student loan for Maintenance	£3,205	£3,205	£4,355	£3,305
Student loan for tuition fees (depends on fee charged)	Up to £3,000	Up to £3,000	Up to £3,000	Up to £3,000
TOTAL Support from Government - up to:	£8,905*	£7,655*	£7,405*	£6,305*
Additional Support – University and College Bursary	Of at least £300 non repayable support	**	**	**

*Where maximum fee of £3000 is charged by university or college and loan of £3000 is taken.
**Universities and colleges are offering a wide range of bursaries to a broad range of students. Students need to check what is available.