The average cost of a degree is more than £17,500, as revealed by Push.co.uk who recently conducted the UK’s largest ever survey of student finance. However it’s worthwhile to remember that this is the average figure and there can be considerable variation in costs from university to university and from city to city- some places are cheaper to study in than others.
Tuition Costs

Higher education students in England and Wales have to pay for their course in the form of fees. Students are entitled to help with these fees through students loans, and the money only has to be repaid once their studies are complete and the student has a sufficient level of income. To be eligible for a loan you must have been resident in the UK for at least three years before starting your course. If you have taken another higher education course before, you will need to contact your local authority to see if you are eligible for funding.

The government subsidises the cost of courses through direct payments to the university for each student who enrols with them. In addition universities in the UK are allowed to charge students a further contribution towards the cost. These are what have become known as ‘top-up fees’. Currently universities are allowed to charge up to £3,145 a year. The top-up fees charged may well vary between courses as well as universities. This also applies to people undertaking a higher education course at a college rather than a university.

Students are able to apply for a student loan to cover the amount that your university or college will charge you. However the loan is not paid back while studying: it is repaid once a student has graduated and their earnings have reached a certain threshold. This threshold is currently set at £15,000 – or £15,000 profit if you are self-employed. To find out in more detail how the student loan is repaid visit www.direct.gov.uk and www.aimhigher.ac.uk.

Part-time students can apply for fee grants (to help with tuition fees) and course grants (for books and travel etc.). The size of these grants will depend on household income, whether the applicant has any dependents and the intensity of the course – a part-time course taking twice as long as a full-time course has an intensity of 50%. These grants do not count as income when benefit entitlement is being calculated. Disabled students can also apply for the Disabled Students Allowance which does not depend on household income.

The structure differs slightly across the different countries of the UK. Most importantly top-up fees do not apply right across the UK, for example they are not charged in Scotland where there are no tuition fees for Scottish students and there is a fixed rate fee for students from the rest of the UK.

Living Costs
The National Union of Students has created a guide of the yearly cost of living for a student per year but remember that these figures depend on your lifestyle. Some of the costs you will need to take into consideration include:
  • tuition fees
  • books, study resources
  • rent / hall fees
  • transport
  • clothes, laundry
  • leisure
  • food – food is an essential part of your budget and is likely to be the most flexible part of it. As a result, when you’re overspending it is usually the food budget that you cut first. But this is not something that is simply done! You must make sure that you have a healthy, balanced diet. The following ideas should help:

Food Shopping

  • Plan your menu a week ahead and buy foods accordingly.
  • Remember packed lunches work out much cheaper than buying sandwiches or eating out.
  • Always use a shopping list with items for your planned menu – and stick to it! Of course, you can treat yourself from time to time, but most of the time you need to stick to a list.
  • When you get to the supermarket, immediately check out the ‘reduced item’ shelves (usually at the end of an aisle) to see if there is anything you could use.
  • Keep a running total as you shop and check against the till receipt – mistakes do occur!
  • Watch the ‘sell by’ dates as you shop. You do not want to throw away food which you bought cheaply but cannot use in time.
  • Take advantage of discounts for buying in bulk – but only when you are sure you will be able to use the items. There is no point buying ‘3 for the price of 2’ if the product will be out of date before you can use it. Tinned goods and toiletries are ideal things to buy in bulk.
  • Prices of many fresh products such as fruit and vegetables vary during the year so include items when they are cheap and avoid them when they are not.
  • Buying fresh vegetables from the local market or greengrocer usually works out cheaper than buying them from the supermarket.
  • Fresh fruit and vegetables that need washing and cutting are much cheaper than prepared or frozen items.
  • Avoid prepared ‘instant meals’ as you are paying for someone else to prepare them.
  • Buy ‘own brand’ products which are often cheaper but just as good.
  • Take advantage of all the money-off coupons you can.
  • Visit supermarkets at the end of the day, when fresh food is often marked down in price.

Other Ideas

Below are just a few more ideas that can help your money go further.

  • Only pay with cash. This is easier said than done, but if you can’t afford something, save for it.
  • Keep a record of everything you spend, including snacks, bus fares and going out. If it helps, download the Moneybasics Spendometer for free onto your mobile phone so you can keep track of your money while you’re out and about.
  • When you are thinking of buying something, ask yourself whether it is something you need or just want. Try waiting for thirty days (okay then, at least seven!) before you buy anything – that should test how much you need it.
  • Buy the items that do the job best: don’t pay just for the ‘right’ label.
  • Remember that restaurants and fast-food places charge a high price for what you get.
  • Don’t be afraid to haggle (try to get a price reduced) – especially if you are paying cash.
  • When you are thinking about buying something, don’t be afraid to walk out of the shop if you are not happy about the product, the shop or anything else.
  • When you use a washing machine, oven and so on, try and fill them to save energy costs.
  • Try and buy in end-of-season sales – Christmas cards are very cheap in January!
  • Can you make your own Christmas or birthday presents? This may sound a very old-fashioned idea but some of your older relatives might still like a gift you have made more than one you have bought.
  • Keep your budget up to date.
  • Keep looking for ways of making the most of your income and cutting down on your spending.
  • Keep a record of what you spend and check this against your bank statement.
  • Keep receipts and guarantees in case things go wrong.
  • Talk to your friends about how they manage.

Further Information

Credit Action produces a ‘Student Moneymanual’ with lots of information on managing your money as a student.

www.creditaction.org.uk

The Student Loans Company has an excellent website. There are also calculators to find out how much loan you would qualify for, and to tell you about repayments you will have to make.

www.slc.co.uk

Support 4 Learning runs a website with all you need to know about student loans and government and other grants for higher education, with many links to relevant sites. It also talks about student bank overdrafts.

www.support4learning.com

Department for Innovation, Universities and Skills. This government department has a section of its website devoted to help and support for students:

www.dius.gov.uk

To find out more about how the student loan works and how it is repaid visit either :

www.direct.gov.uk and www.aimhigher.ac.uk.

Department for Education and Skills. This government department has a section of its website devoted to help and support for students:

www.dfes.gov.uk/studentsupport

To find out about changes or further information relating to the student finance system, take a look at the DFES’s guide to financial support for higher education students in 2006/2007, here.

National Union of Students. This site has useful support information, including discounts available to union members.

www.nusonline.co.uk

EntitledTo provides free calculators to help you work out your entitlement to benefits and tax credits.

www.entitledto.co.uk