What is the cost of higher education?

A number of factors come into play when estimating the cost of a student’s higher education.

The overall cost will be dependent upon the student’s chosen course, institution and household income.

Student finance costs

From September 2006 universities and colleges in England, Wales, Scotland and Northern Ireland now all have different arrangements when it comes to charging fees. The Northern Ireland Government plans to introduce the following changes to the student finance system.

• Universities and Colleges of Higher Education in the United Kingdom will be able to charge new full time undergraduates fees of up to £3,225 a year. Any further increases will be limited to the rate of inflation until at least 2010. The amount charged will vary between courses, as well as between universities. The amount for institutions within Northern Ireland is awaiting confirmation.
• New students starting courses in the Republic of Ireland in September 2007 will be treated as “continuing students”.

Student loans are available to help with living costs: of the total loan entitlement, 25% is means-tested, which means it depends on your household income. This is assessed on the basis of whether the student is ‘dependent’ or ‘independent'.

Interest is charged on student loans from the moment they are paid until they are repaid in full. The interest rate for loans applies from 1 September to 31 August each year. The rate is linked to the rate of inflation in line with the Retail Prices Index: this means that in real terms that the amount repaid will broadly have the same value as the amount borrowed and no profit is made on the loan itself. The interest rate is currently 3.8%.

Entitlement to grants and loans increases each year in line with inflation, and your financial contribution towards the student’s support will be assessed by your Education and Library Board (ELB).

Students who commenced their studies before 2006

Tuition Fees

Continuing students will be charged tuition fees of up to £1,255 in Academic Year 08/09, this figure is £1,285 in 09/10.
They may be entitled to a grant to pay all or part of these tuition fees, but the amount of help they can receive will depend on your household ‘residual income’ (your household income after certain deductions).

Student Loans for Tuition Fee Contributions

Eligible students will be able to apply for the new Student Loan for Fees to cover the cost of any assessed contribution. This support does not require to be repaid until the student has completed their studies and is earning above the threshold of £15,000.

Student Loans for maintenance

Loans are available to help with living costs, e.g. course materials, accommodation, food, clothes, travel etc. As noted above, interest is charged at the rate of inflation, so the amount repaid will be equal in value to the amount borrowed.

Higher Education Bursaries

Bursaries of up to £2,000 are available for students from lower income families. Full-time students in higher education who are eligible for loans for living costs and tuition fee support and whose household income is less than a certain level can apply. The amount of the bursary will be assessed by reference to the student’s household income and is paid in three instalments just like the student loan. It does not have to be repaid.