A parent's guide to student finance and university fees

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Speaker 1: A tuition fee loan covers the cost of your tuition fees for the duration of your course. The amount that you borrow will be determined by the university that you are applying to. Interest will be applied to your repayments when your graduate salary is over a certain threshold.

Speaker 2: A maintenance loan is intended to help cover living expenses while attending university. The amount you receive depends on various factors such as household income, where you live and study, and whether you're living at home as a commuter student or in student accommodation. Once your studies are complete and your income is above a certain threshold, you will need to repay this loan with interest. If you were to withdraw from your course, you would still be responsible for repaying the loan to the student loans company. For that reason, it's really important to understand the terms and conditions of your loan and to be aware of all financial obligations and repayment arrangements. Payments are released to you in three payments in line with your term dates.

Speaker 1: If you look on the gov.uk website for student funding, you should be able to find the answers or assistance that you need. However, for Birmingham City University specific guidance, please contact our fees and funding team at fundingbcu.ac.uk.

Speaker 2: Usually, student finance loans are only granted for the first higher education qualification you study. However, some exceptions may apply for certain circumstances and specific courses. Further information can be found at the gov.uk website.

Speaker 1: New students must apply before your course starts as you will be asked to provide your student finance details when you enroll. You'll then need to reapply for each academic year, including repeat years. For continuing students, you are required to submit applications for the upcoming year by the time your teaching starts for that year. Get your application in sooner rather than later as if your application is late, it could result in delayed payments. If you don't have your student finance secured in time for the new academic year, it could result in the university issuing you an invoice as we assume you are self-funding your studies.

Speaker 2: If you're not able to find your course on the student finance site during the application process, you need to contact us via funding atbsu.ac.uk and we will be able to assist you. If your funding is delayed, it may be due to a late application or some missing essential information. You can track your application through the gov.uk site. If you have not had your payment and are certain you have completed all the necessary steps of your application, contact us at fundingbcu.ac.uk.

Speaker 1: If you have come to us through clearing and have already applied for student finance, you need to notify student finance England of any changes to your course, university, or college. If you don't, your funds could end up going to a different institution.

Speaker 2: We confirm your attendance at university three times a year in alignment with your term time dates. Once you begin your classes, you are liable for paying tuition fees. Activities like freshers events are before teaching starts, so would not be compulsory. Though it is of course a great idea to get involved to help you get settled into university life.

Speaker 1: If you have selected a different university in your application, contact our team at fundingbu.uk and we will be able to make adjustments with the student loans company.

Speaker 2: We would advise you to complete your student finance application as soon as possible. Take your time with the application to ensure you're entering accurate information. Applying early means you have plenty of time to make changes if you change your mind about your course or your institution or if your personal circumstances change. Get in touch with us at fundingbcu.ac.uk if you have any further questions.

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Thanks to loans, financial support and low repayments, funding a degree isn’t as difficult as you might think! Studying at university is a significant investment and as a result can initially seem expensive. However, it is important to read past the headlines to find out how the system would work on a practical level for your child.

Graduates earn an average of £10,000 more per year, or £400,000 over a 40-year working life, than someone without a degree (Graduate Labour Market Statistics 2021, Department for Education). There is a range of student finance packages available, plus grants, bursaries and scholarships to help make university a much more achievable goal.

Loans

Tuition fee loan: Universities can charge up to £9,250 a year for tuition fees to full-time UK and EU students. However it is important to consider that this money is not paid up front by the student; it is paid directly to the university by the Student Loans Company, with repayments only beginning once the graduate is in work and earning above a set amount.

Maintenance loan: Maintenance loans are paid to help with living costs, such as accommodation, food and travel. A portion of this loan is available to all students and the amount your son or daughter is entitled to depends on where they decide to study (with a higher loan available for students in London) and if they live at home. The remaining portion of the loan is means-tested, which is when Student Finance England will require documentation to confirm the student’s household income to determine how much more they’re entitled to receive.

Parent and guardian guide to university

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Other support

Extra support for students with a disability and for those with children and dependants may also be available. These include Parents’ Learning Allowance, Childcare Grant, Adult Dependants’ Grant, and Disabled Students’ Allowances. For up-to-date information on how much your son or daughter is entitled to, visit the Government's website.

Scholarships and bursaries

Some universities offer their own scholarships and bursaries and it’s important for your son or daughter to check what extra financial support is available. We offer both academic and means-tested scholarships.

Parental support

Everyone’s situation is different, however as your child prepares for university life, it is important to have some frank conversations about financial matters. Will you be able to provide any extra support? If so, to what extent and how often? Will this be expected to be repaid and are there expectations on how should this money be used? Would you be happy to act as a guarantor for accommodation or help with initial deposit payments? These discussions are essential in helping students to prepare a realistic budget for their time at university.

Repayments

If your child began their studies in or after September 2023 and accessed a student loan, they will only start repaying their student loan once they are earning over £25,000 (figure correct as of May 2023) per annum. Payments begin if they earn above this threshold the April after they graduate. Typically repayments are automatically deducted from their salary via the tax system. Student loan repayments are directly linked to how much a graduate earns, not the amount they borrowed. Meaning that regardless of whether they borrow £1,000 or £50,000, the monthly repayment cost would be the same.

How it is worked out

Your child will repay 9% of any income above £25,000. If at any point during their career earnings drop below £25,000 they stop repaying. After 40 years, any outstanding payments will be written off.

See our list of courses

Take a look at the many courses we offer to discover the right one for your child. From foundation to postgraduate study, we cater to all abilities and interests to make sure all students have access to continue their education journey!

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