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Student finance: How much does university cost and does it increase earnings? How much does uni in the UK cost and will I earn more if I go?
(4 months later)
Students starting university in England this year face big changes to the way student loans work. Exams are about to start, with hundreds of thousands of students hoping to secure a place at university.
And with these changes coming alongside the cost-of-living crisis, some are wondering whether university makes financial sense. Getting a degree is expensive, but does uni pay for itself through higher future earnings?
Everything you need to know about student loans
How do I choose an apprenticeship, and is the pay good?
What does going to university cost?
The combined cost of tuition fees and accommodation for an undergraduate UK student varies:
England: £49,887
Wales: £45,494
Northern Ireland: £32,091
Scotland: £27,775
These estimates use data from the National Union of Students (NUS) and the Unipol housing charity. They assume students pay the maximum fees in the nation where they already live, spend one year living in university halls and other years in private accommodation. The figure for England includes London averages.
Students also need to budget for other big expenses which are not included - food, transport, course materials and going out.
How much are tuition fees?How much are tuition fees?
The cost of tuition per year also varies: One of the biggest costs of going to university is the course itself.
Most students take out loans to pay for their undergraduate tuition.
The annual cost for UK students varies:
England: £9,250England: £9,250
Wales: £9,000 England: £9,250
Northern Ireland: £4,710 for Northern Irish students, or £9,250 for other UK students Wales: £9,250
Wales: £9,250
Northern Ireland: £4,750 for Northern Irish students, or £9,250 for other UK students
Northern Ireland: £4,750 for Northern Irish students, or £9,250 for other UK students
Scotland: Free for the majority of Scottish students, and £9,250 for other UK studentsScotland: Free for the majority of Scottish students, and £9,250 for other UK students
Scotland: Free for the majority of Scottish students, and £9,250 for other UK students
What does student accommodation cost?What does student accommodation cost?
Student rents have risen sharply in recent years, according to data from 10 university towns and cities, external.
Average annual rent rose from £6,520 in 2021-22 to £7,475 in 2023-24, according to research by the Higher Education Policy Institute (Hepi) and housing charity Unipol. The figures do not include London and Edinburgh.
Student rents are particularly high in some cities like Bristol and Nottingham, where the average cost was £9,200 and £8,427 respectively.
Hepi warned that maintenance loans in England now only just cover average rent. It said that without family support or part-time work, students "will have no money to live off" after housing costs.
If you are leaving home to study, it is generally cheaper to live in university-owned accommodation.If you are leaving home to study, it is generally cheaper to live in university-owned accommodation.
In 2021-22 (the latest figures available) average rent for university-owned rooms was £6,227 per year, and £7,732 for private rooms. In 2021-22 (the latest UK-wide figures available), external average rent for university-owned rooms ranged from £6,471 in England to £4,565 in Northern Ireland.
There are big differences between areas. Students also need to budget for other big expenses, such as food, transport, course materials and going out.
In London, the average cost for university-owned rooms was £7,546 per year and £12,034 for private rooms. Research by the Universities and Colleges Admissions Service (Ucas), based on a survey of about 500 respondents, suggests that students spent £219 per week on average in late 2022, external.
In England overall, it was £6,471 a year for university-owned rooms and £7,833 for private accommodation. More than half of students had a job last year, according to Hepi.
Scotland was £5,809 for university accommodation and £7,322 for private.
For Wales it's £5,106 and £6,694, and for Northern Ireland it's £4,565 and £6,698.
How do student loans work?How do student loans work?
Most UK students take out student loans. Most UK students are eligible for a tuition fee loan.
Eligibility and repayment rules differ across the UK, but student loans are typically made up of two elements: Maintenance loans are also available, for living costs.
loan for the tuition fees - paid directly to the university These are means-tested, so the amount you get depends on your family's income.
maintenance loan - paid into the student's bank account in instalments The maximum maintenance loan if you live away from home and outside of London ranges from £10,227 in England to £6,776 in Northern Ireland in 2024/25.
Most people are entitled to the tuition fee element, which is equal to the annual cost of your course up to £9,250 per year. You are charged interest on yourtotal loan from the day you take it out. Eligibility and repayment rules differ across the UK.
The maintenance loan is intended to cover accommodation, food, books and equipment. How do student loans work?
The amount you get depends on your family's household income. If your parents earn above a certain amount they will be asked to contribute to your living costs. How do student loans work?
You might get extra money if you are disabled or have children. Student finance for undergraduates, external
If you're under 25 and have no contact with your parents, you might be able to apply as an "estranged student" which means their finances are not considered. Student finance for undergraduates, external
Students in England can borrow up to £9,978 a year for a maintenance loan if living outside London and away from their parents. This increases to £13,022 in London. Student finance calculator, external
In Scotland, the maximum annual maintenance loan is £8,000. In Wales it is £10,720, and in Northern Ireland the maximum loan is £6,776. Student finance calculator, external
Students are charged interest on their total loan from the day they take it out. Loan repayment rules changed in England last year. You're likely to pay back more, over a longer period of time, than people who went to university earlier.
Student finance for undergraduates The government says new students "will not repay more than they originally borrowed over the lifetime of their loans, when adjusted for inflation".
Student finance calculator But Martin Lewis, of MoneySavingExpert.com, said extending the repayment period would increase "costs by thousands" for lower and mid earners, external.
How are student loan repayments changing in England? What extra financial help can students get?
If you live in England and are starting university in September 2023, you will pay back 9% of your earnings over £25,000 from the April after you graduate. This is lower than the current threshold of £27,295. Eligible students in Wales and Northern Ireland can claim maintenance grants which are not repaid.
You will also have to pay the loan back for longer. Full-time undergraduates normally resident in Wales are entitled to at least £1,000, external. There is up to £10,124 for students from the poorest backgrounds who study in London.
Under "Repayment plan 5", any outstanding debt will be written off after 40 years, instead of 30. In Northern Ireland the maximum grant is £3,475, external.
However, the amount of interest charged is being cut. New students will be charged interest equal to the retail price index (RPI) measure of inflation, instead of the current rate of RPI plus 3%. (The current RPI rate is 10.7%). The Scottish government offers financial support to certain categories of students, external, such as those with dependants.
The government says this means new students "will not repay more than they originally borrowed over the lifetime of their loans, when adjusted for inflation". Across the UK, students in financial difficulty can apply for hardship funding and they may also be entitled to financial assistance from charities, external.
But Martin Lewis, founder of MoneySavingExpert.com, says extending the period over which university leavers pay back their loans will increase "costs by thousands" for lower and mid earners, who are unlikely to completely repay their loan.
Labour also said the changes will "hit those on low incomes hardest".
What extra financial help is available?
Eligible students in Wales and Northern Ireland can also claim maintenance grants which are not repaid.
Full-time undergraduates normally resident in Wales are entitled to at least £1,000. There is up to £10,124 for students from the poorest backgrounds in Wales who study in London.
In Northern Ireland the maximum maintenance grant is £3,475.
The Scottish government offers financial support to certain categories of students, such as those with dependants.
Across the UK, students in financial difficulty can apply for hardship funding from their institution, which does not usually have to be repaid.
They may also be entitled to financial assistance from charities.
Will I earn more money?Will I earn more money?
Most students will leave university owing money. The average debt for students who start university in England this year, for example, will be about £43,000. Most students will leave university owing money.
In general, most graduates can expect to earn more than non-graduates, according to the Higher Education Statistics Agency (HESA). The Student Loans Company says graduates in England leave university with average debts of £44,940.
However, it suggests the extra money earned as a result of a university education has reduced over time. In general, most graduates can expect to earn more than non-graduates, according to the Higher Education Statistics Agency (HESA)., external
According to data from HESA's survey of 2020-21 graduates, the average salary reported 15 months after gaining a degree was £27,340. However, it suggests the extra money earned from a university education has declined.
Poor quality university courses face student limits According to HESA's survey of 2020-21 graduates, the average salary reported 15 months after gaining a degree was £29,699., external
How much graduates earn also depends on the subject studied and university attended. Earnings also depend on the subject studied and university attended.
Research by the IFS think tank in England suggests, on average, women who studied creative arts and languages degrees earned the same amount in their lifetime as if they had not gone to university. Research by the IFS think tank, external in England suggests, on average, women who studied creative arts and languages degrees earned the same amount in their lifetime as if they had not gone to university.
Women who studied law, economics or medicine earned more than £250,000 more during their career than if they had not got a degree. Women who studied law, economics or medicine earned over £250,000 more during their career than if they had not got a degree.
Men who studied creative arts on average earned less across their lifetimes than if they had not attended university. Male medicine or economics graduates earned £500,000 more.Men who studied creative arts on average earned less across their lifetimes than if they had not attended university. Male medicine or economics graduates earned £500,000 more.
Attending university can help students from poorer backgrounds earn more than their parents might have done, according to research by the Sutton Trust in England. Attending university can help students from poorer backgrounds earn more than their parents might have done, according to research by education charity the Sutton Trust, external in England.
But only a fifth of graduates who were eligible for free school meals went on to be in the top 20% of earners - compared to almost half of graduates who attended private schools. But only a fifth of graduates who were eligible for free school meals went on to be in the top 20% of earners - compared to almost half of graduates who attended private schools, external.
The Sutton Trust says attending a selective university, like a Russell Group university, gives young people the "best chance of being socially mobile".
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