I went to uni in the early '90's, have student loans changed since then?

Question

I recall a controversy in the late '90's about them being changed to one huge lump sum out of which the student would pay the fees themselves, but I just checked them out and they seem exactly the same system as before to me.

Answer 1

Students receive three amounts each year (one per term).  You receive approximately £3000 a year.

On top of that students have to pay their fees every year.  For most students these are paid for them and then they have to pay that back.  The fees are normally around £4000 a year.

Meaning . . . most students will owe £21,000 when they graduate - so trust me times have changed! Whoever said education was free obviously didn't go to University under a Labour government!

Answer 2

Not sure what Empress is talking about...what is that £3000 a year you're talking about for? Because you then mention fees so it can't be that. You can get a maintenance loan or grant but it's means tested. And fees aren't about £4000 a year, they're much closer to £3000. Every student gets a loan to pay off their fees, they start paying it back when they earn over £15000 a year and then they pay back 9% of however much they earn over that amount. If it's not payed back in a certain time it's written off.

Answer 3

The maximum fees for 2008 are actually £3145. Everyone gets a loan from the government, which you don't start paying back until you're earning £15,000 and even then it's only 9% of anything over (i.e. if you earn £16000, you would only pay 9% of the £1000 over 15 thousand). It's something like after 25 years if you haven't paid it back it's written off.

A lot more students are also eligible for a maintenance grant that you DON'T have to pay back. If your household income is less than £25000 you get a full grant of £2835 a year. If your income is between £25,000 and £60,000 you get a partial maintance grant.

You can also get loans to cover living costs too. The maximum available outside of London is £4625. 75% is non-means tested. 25% is means tested. It is paid in three installments at the beginning of each term.

Colleges and universities are also required to offer non repayable bursuries to those recieving a full maintance grant if they charge over a certain amount for fees.

So yeah, if you have a full loan, you can leave university with debts of £21,000. If you're from a lower income household though and you're getting a maintenance grant and bursuries from your college/universities etc, you could only be paying your tuition fees of £9000 back.