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Myth-busting: The truth about student finances

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Published on 27 February 2019

Busting student finance myths
Busting student finance myths

Who decides how much my tuition fee is?

The University of Sunderland sets your tuition fee. Eligible students can also apply for a Tuition Fee Loan. This needs to be paid back, but not until you’ve finished or left your course, and your income is over the repayment threshold.

 

So do I need to pay my fees before I even start my programme?

It’s a myth to suggest, if you can’t pay straight away, you can’t go to university.

Tuition fees are paid by the Student Loans Company for eligible students. And there is a loan for living costs too.

 

Ok, what's available?

How much you can get depends on:

  • how much your programme fees are 
  • when you started your course

 

You could get a Tuition Fee Loan of up to £9,250 if you're studying at the University of Sunderland. If you're studying an accelerated degree course, you could get up to £11,100.

If you're not sure if a course qualifies for student finance, check with the University of Sunderland’s Student Financial Guidance Team.

 

So what makes me eligible for help with my fees?

  • personal circumstances
  • course
  • your nationality or residency status
  • your age
  • previous study

 

Fine, so how is it paid?

You need to apply for Student Finance and then register at the University of Sunderland before Student Finance England can make your first payment. You’ll usually do this in the first week of your course.

Your Tuition Fee Loan is paid directly to the University of Sunderland in three installments during the academic year.

 

When are payments made to UoS?

At the start of term one 25% of the tuition fee

At the start of term two 25% of the tuition fee

At the start of term three 50% of the tuition fee

 

That’s all fine, but what I’m really interested in is – when do I have to start paying the money back?

Full-time students only need to start repaying at the earliest in the April after they graduate, or leave, no matter how long their course is.

 

So I start paying then, no matter what?

No, once you leave university, you only repay when you're earning above £2,083 a month – the equivalent to £25,000 a year - and then it's fixed at 9% of everything you earn above that.

It’s important to remember, the threshold is increasing to £25,725 in April 2019.

 

What exactly do they mean by ‘earnings’?

Well, this covers any taxable income from employment or self-employment and in some cases earnings from investment and savings.

Even if you've started repaying the loan, but then lose your job or take a pay cut, your repayments drop accordingly.

 

Ok, so say I’m earning £26,000 a year – how much will I have to pay back?

Basically - £90, as £26,000 is £1,000 above the threshold and 9% of £1,000 is £90.

 

My parents are concerned I’m going to have debt, is this the case?

A lot of parents are worried about their children leaving with debt, however the reality is different.

Someone on a low wage will be required to repay little or nothing at all. In fact, only higher earners will be shelling out large amounts.

In reality, the system is designed so that, in the main, those who gain the most financially out of university contribute the most.

 

So what happens if I never earn above the pay-back threshold?

Simple, when 30 years - from the April after graduation - have passed, the debt is wiped providing you’ve never earned above the threshold.

 

I saw in the news something is happening with tuition fees, what is it?

In England, undergraduate tuition fees are capped at £9,250 a year for UK and EU students. The UK government has announced a review of Post-18 Education and Funding in England which will include universities, university fees and student financial support. This review is expected to report in early this year.

The Prime Minister has stated that she is not looking to scrap university tuition fees and, as a principle, graduates should continue to contribute to the cost of their studies.

 

Will the review affect the fee I pay at Sunderland next year?

At the moment, we do not know what the review will recommend or how and when any recommendations will be implemented. However, the fees in England for 2019-20 entry have been confirmed at £9,250 per year. 

 

Ok, so that’s fees sorted, what about living costs?

This is slightly more complicated,

Eligible students can also take a loan to pay for their living costs – things like food, books, accommodation and travel. They are known as maintenance loans, and are usually paid in three termly instalments direct to the student's bank account.

 

Fine, so what about repaying that?

It’s repaid the same way as tuition fees - 9% of everything earned above £25,000.

 BUT

The living loan is means tested, and the means tested proportion has increased over recent years from a third to over a half. For most students under 25, this means test is based on parents’ income. For married students, or students over 25, this would be a spouse/partner’s income.

 

So what about scholarships?

The University of Sunderland is committed to offering a wide range of financial support to our students, and you may be eligible for a number of our scholarships.

You can find more information about all of the scholarships we offer online on our scholarships, discounts and specialised grants page on our website.

 

To find out how we can help you with your university finances, click here.