2012/2013 BIS Government Financial Grants for Students in the UK

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The UK Government as set up a radical plan to support students studying in any Universities and Colleges in the United Kingdom through the Department of Business and Innovative Skills.

The system is designed so that students from England studying full-time for their first degree or other higher education course will not have to pay anything while they study. More details are given below;

Grants Description:
From September 2012, universities and others providing higher education will be able to charge up to £6,000 a year for their courseses1]. Some will be able to charge up to £9,000 a year – to do so they will need to meet strict criteria to make sure that all eligible students, regardless of background, can access those courses.

Eligiblity:
Full time students from England who are studying for their first degree or other higher education course can benefit from a range of financial support including:
•   No upfront costs
•   You don't have to pay for your course yourself upfront
•   You can get a loan to cover the cost of your tuition, which you only start to pay back when you are earning over £21,000 a year.
•   Loans for living costs
•   Available to help with living costs such as food, accommodation and travel.
•   A loan of up to £5,500 will be available if you live away from home and study outside London.
•   A larger loan of up to £7,675 will be available if you live away from home and study in London.
•   A loan of up to £4,375 will be available if you live with your parents.
•   Non-repayable grants
•   Available to help with living costs such as food, accommodation and travel
•   If your household income is up to £25,000 you will be entitled to a full grant, of £3,250, which you won't have to pay back.
•   If your household income is between £25,000 and £42,600 you would be entitled to a grant of between £50 and £3,250 which you won't have to pay back.

Look at the table below to find the kind of support on offer to students living away from home and studying outside London. Figures are based on household income.
Package of support for 2012/13

Household income   Non repayable grant   Living cost loan   Total
£25,000 or less   £3,250   £3,875   £7,125
£30,000   £2,341   £4,330   £6,671
£35,000   £1,432   £4,784   £6,216
£40,000   £523   £5,239   £5,762
£45,000   £0   £5,288   £5,288
£50,000   £0   £4,788   £4,788
£55,000   £0   £4,288   £4,288
£60,000   £0   £3,788   £3,788
Over £62,500            £0   £3,575   £3,575

•   £150m National Scholarship Programme
•   Will be introduced from 2012 and worth £150m a year by 2014/15 to help people from lower income households.
•   Details will be available on UCAS and university websites from Summer 2011
•   How loan repayments are expected to work [2]
•   You only start to pay back when you are earning over £21,000 a year
•   You repay 9% of your income above £21,000. So for example, if your salary was £25,000, the 9% would only apply to £4,000, meaning you would repay £30 per month.[3]
•   The table below shows some salaries and typical repayments.
•   If your salary falls below £21,000 your repayments stop– for example if you take a career break or are unemployed. Repayments only start again when you earn over £21,000.
•   Loan repayments will be deducted from your salary, normally through the tax system.
•   If you have not repaid your loan after 30 years it is written off.

Salary   Amount of salary from which 9% will be deducted   Monthly repayment
£25,000   £4,000   £30.00
£30,000   £9,000   £67.50
£35,000   £14,000   £105.00
£40,000   £19,000   £142.50
£45,000   £24,000   £180.00
£50,000   £29,000   £217.50
£55,000   £34,000   £255.00
£60,000   £39,000   £292.50

Rates of interest

The government's plans[4]are that:
•   Interest on your loan will be applied at inflation (RPI – Retail Price Index) plus 3% while you are studying, and up until the April after you leave university or college.
•   From the April after you leave university or college if you are earning below £21,000, interest will be applied at the rate of inflation.
•   For graduates earning between £21,000 and £41,000 interest will be applied between RPI and RPI + 3% on a gradual scale depending on income.
•   For graduates earning above £41,000, interest will be applied at RPI + 3%.

For Further Details:
Please contact the relevant university or college for further information.

Student finance | Policies | BIS

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