How much does it cost to go to university and how do I apply for a student loan?

Thousands of students picked up their A-level results yesterday, with many celebrating acceptance to university.

But university is an expensive choice – and for many, this is their first time managing large sums of money and budgeting.

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For those depending on Student Finance to help them through, you can apply a maximum of nine months after your first day at university.

Here Sky News answers all your questions on the financial side of higher education.

How much does it cost to go to university?

Annual fees are £9,250 in England, £9,000 in Wales, £4,630 in Northern Ireland (for Northern Irish students, but £9,250 for other UK students) and free in Scotland for Scottish students if they meet certain criteria (and £9,250 for other UK students).

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That is just tuition fees however. Most students will move away from home and therefore also need to pay for accommodation, food and other living expenses.

How much is accommodation?

The average cost for weekly rent in the UK in purpose-built student accommodation for 2021 is £166, according to the Complete University Guide.

Private sector accommodation averages £155 a week for an ensuite room and £228 for a studio.

In London, the average was £212 per week for university accommodation and £259 for the private sector.

What about student loans?

Most undergraduate students are only 18 when they go to university, so will not have the money to pay for the course and other expenses.

Student Finance England and similar bodies in the devolved nations offer loans that allow people to do their studies first and then pay back the fees once they are earning.

Student loans are usually made of two separate parts – the tuition fees that are paid directly to the university and maintenance loans, paid termly into the student’s bank account.

All students are eligible for tuition loans but how much you receive on your maintenance loan is determined by your household income, where you study and where you live.

Students are charged interest on their total loan from the day they take it out.

There are also some grants available for students eligible for certain benefits, those who are disabled or those who need help with childcare.

Some organisations and charities also offer specific bursaries for students in difficult circumstances.

How much could you get?

The minimum maintenance loan you could receive annually is £3,597 if living at home, £4,524 if living away from home and £6,308 if living away from home in London.

The maximum is based on a household income of less than £25,000 and is £8,171 if living at home, £9,706 if living away from home, and £12,667 if living away from home in London.

Many students find their loan doesn’t cover all expenses, so look for a part-time job alongside their studies.

What about Ukrainian refugees and foreign students?

Earlier this year it was announced Ukrainian refugees studying at English universities would face the same fee status as domestic students.

It means Ukrainian undergraduates studying at English institutions will not be charged more than £9,250 a year – instead of international fees, which can be much higher – and will have access to student support such as loans.

It follows similar measures announced in Scotland early this month, although due to Scottish students having their fees covered by the Holyrood government, Ukrainian refugees will be able to study there free of charge.

How do you pay it back?

How much you repay is based on how much you earn – not how much you borrow. You start repaying the April after you finish your course, but only if you earn enough.

Once you leave your course, you only repay once your income is above the repayment threshold. At the moment this is £27,295 a year, £2,274 a month, or £524 a week.

You pay 9% on any amount you earn above the threshold.

For example, if you earn £2,310 a month before tax, you’ll repay £3 a month. This is because £2,310 is £36 above the monthly threshold of £2,274, and 9% of £36 is £3 (rounded down to the nearest pound).

So for example…

If your yearly income is £27,295 you pay back nothing.

If you earn £31,000 you will repay £27 a month. If you earn £33,000 you repay £42 a month.

Are the loans written off?

Loans are written off 30 years after the April you were first due to repay.

Student bank accounts could help

As well as maintenance loans, banks offer special accounts for students with interest-free overdrafts, which can help them manage spiralling costs.

Usually you can open one after you complete your A-levels or Scottish Highers, and once you have a place confirmed at university.

Most will offer some form of 0% overdraft but remember, it’s not free money forever – be careful not to go too far into the red, as you’ll have to pay it all back eventually.

Santander 123

This account gives students a guaranteed £1,500 0% interest overdraft in the first three years of university, with the option to increase it in years four and five.

The other perk is a free four-year railcard – which usually costs £30 per year, and gives 30% off rail fares in the UK.

HSBC Student

This offers a guaranteed £1,000 0% interest overdraft in year one, with the option to increase it to £2,000 in year two and £3,000 in year three.

The other bonus is £100 free cash – to qualify just spend on the debit card five times in the first 30 days.

Nationwide FlexStudent

Nationwide offer the same 0% interest overdraft as HSBC and £100 free cash. To qualify, credit the account with £500 for December (the easiest way to do this is to get your student maintenance loan paid into the account) and it will be paid within 14 days.

The bank is also giving £10 towards those impacted by homelessness for every FlexStudent account opened in August and September.

NatWest & Royal Bank of Scotland

Both NatWest and the Royal Bank of Scotland offer a £500 0% interest overdraft in term one, and then up to £2,000 for the rest of your time at university.

They also include £80 cash and a four-year Tastecard, a discount card which gives 50% off in many restaurants.

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