UCR’s Ultimate Guide to Student Finance

There’s been a lot of chatter about student loans in recent months – and not always in the best light.

But are student loans really all that bad? Will they affect your future? And is it still worth going to university?

In this blog, we answer some FAQs about financing a Higher Education course at University Centre Rotherham. 

How much does Higher Education cost at University Centre Rotherham?

The cost of a full-time Higher Education course at University Centre Rotherham ranges between £6,900 and £7,600 per year. This is for study programmes at levels 4 to 6 including bachelor’s degrees, foundation degrees, HNCS and HNDs, and higher technical qualifications.

If a course is part-time, the yearly cost will be up to £4,750.

We charge much less than the average university. In England, there is no set fee that universities must all charge but tuition fees are capped at £9,250 per year for a full-time course. If a course takes three years, this will total £27,750.

Even at the maximum rate of £7,600, our fees are almost 20% less than the tuition fee cap. You could shave almost £5,000 off your total student loan by studying at University Centre Rotherham.

I don’t have savings. How will I fund my course fees?

Most students considering Higher Education don’t have thousands of pounds laying around to pay their course fees upfront.

That’s why student finance exists. It helps undergraduate and post-graduate students pay for their course and have money to support their living costs while studying if need be.

Student finance is provided by the government via Student Loans Company (SLC) and any money you borrow is repayable after you graduate.

Do all students get a student loan?

There are two parts to student loans: tuition fee loans and maintenance loans.

All undergraduate students who haven’t already got a degree are eligible for a tuition fee loan. You must be a UK citizen or have ‘settled’ status and have lived here for at least three years.

If you’re considering a post-graduate degree, such as our MA in Education and Professional Development, you may be under the impression that you have to self-fund the course. But that’s incorrect. Tuition fee loans are available for post-graduate study, up to £12,471 for the course duration.

There is no upper age limit for undergraduate tuition loans. However, people over 60 aren’t eligible for post-graduate tuition loans. This is because, statistically, this demographic is unlikely to work long enough to repay the government-funded loan back.

All tuition fees are paid directly to your university or education provider, so you don’t actually see it or are responsible for paying it out. They are made in three instalments e.g., at the start of each term.

What about maintenance loans?

You can also apply for a maintenance loan to support your living costs while studying. This might be used for things like rent, food, transport, utilities, or course equipment.

Maintenance loans are paid directly into your personal bank account three times during the academic year, not a monthly amount. So be mindful of this to ensure you don’t blow the money within the first week and have to scrimp for another ten weeks.

If I live at home, do I not get the maintenance loan?

All students, regardless of where they choose to live while studying, can apply for a maintenance loan.

At University Centre Rotherham, many of our students come here because they already live in Rotherham and want to study without moving away from home.

But that doesn’t mean they don’t need extra financial support during their studies. Not everyone can rely on the bank of mum and dad.

There is, however, a maximum you can borrow if you stay at home. This is £8,610 per year. In comparison, the maximum you can apply for if you move away to university is £10,227.

That’s because, if you live away from home, student accommodation makes up a big bulk of your outgoings. Annual student accommodation rent in Sheffield, for example, averaged out at £6,451 in 2023-24. So staying at home – either with parents or in the house you already pay for – will ultimately save you money.

It’s important to remember that these are loans. Whatever you borrow will need to be paid back once you graduate, so think long and hard about whether you will need a maintenance loan to support your studies.

Will my parents’ income affect my student loan?

The maintenance loan part is means-tested. This means the amount you’re eligible for will depend on your household income – so the collective income of all adults living in that house.

If your household income is less than £25,000, you will be eligible for the maximum amount of £8,160 a year (if living at home). This drops the minimum amount of £3,790 per year if the household income is more than £58,307.

If you are under 25 and are financially dependent on your parents or carers, their income and savings will be used calculate how much loan you receive. This includes single parents, step-parents or your parent’s partner.

If you are over 25, you are classed as independently responsible for your finances so the application will be based on your own income and savings.

Evidence of household income has to be submitted to support your application, so you will need National Insurance numbers and P60s from the previous tax year for any adults in your household.

What if I’m estranged from my parents?

If you are under 25 and not in contact with your parents for any reason, you will need to complete an estrangement form. This is to confirm that you’re irreconcilably estranged from your parent(s) for at least the past 12 months or have been financially dependent for the last three years.

This process is the same if your parents have died, they cannot be traced, or they have significant mental or physical health problems which prevent you from contacting them.

I’m a mature student. Do I qualify for a maintenance loan?

At Higher Education level, anyone over the age of 21 is classed as a mature student.

Maintenance loans have an upper age limit of 60, but people over this age can apply for a special support loan of up to £4,221 depending on their financial situation.

If you are 21-25 and financially dependent on your parents, their income will be considered in your application as above.

If you have a spouse or partner that you live with, their income or savings will also be taken into account as part of the application.

Are grants a thing of the past?

Once upon a time, students from low income households were eligible for maintenance grants that didn’t need to be repaid. However, these no longer exist in England.

But there are certain grants that you may be eligible for. These are:

• Parents of under 18s
  You may be eligible for a grant of between £50 – £1,963 per year if you have dependent children under 18.
• Childcare grant
  Money to help pay for weekly childcare costs while you study. Income dependent, but you could receive up to £193.62 per week for one child, or £331.95 per week if you have two or more children.
• Adult dependents
  If you do a full-time course and have adult dependents, such as a disabled child or are a carer for a parent, you can apply for an annual grant of £3,438.
• Disabled students
  Students who need extra support while studying, such as if you have a long-term illness, mental health problem, or learning disability, can apply for disabled students’ allowance (DSA) up to £26,948 a year. This grant is based on your individual needs, not your income, and you will have to have a needs assessment.

None of the grants need to be repaid unless you drop out of university.

Can my employer pay my tuition fees?

If you are doing a higher level or degree apprenticeship, your course fees are usually covered by your employer. As apprentices receive a wage, they aren’t entitled to maintenance loans.

Some employers may also consider sponsoring your Higher Education course fees as part of your employee benefits or CPD. We have had students studying the ACCA route that have had their course fees covered by employers.

But this is a conversation you will need to have with your employer.

Won’t I still be paying my student loan off when I’m retired?

As of 2023, the repayment terms on student loans increased to 40 years under the new Plan 5. That means that yes, many students might still be repaying their student loans when they’re in their 60s.

The size and length of a student loan on paper can be scary. But it’s often not as frightening as it first seems.

It’s important to remember that repayments are based solely on your earnings, not what you borrow.

Unlike a traditional loan, student loans aren’t paid back straight away. Repayments typically start in the April after you graduate and are taken from your PAYE each month similar to your tax, national insurance and pension contributions.

But even then, you need to be earning above a threshold of £25,000 a year. Loan repayments are based on 9% of anything you earn over that £25,000 threshold.

For example, if you earn £30,000 after you graduate, your gross monthly wage will be £2,500. Take away the £2,083 threshold, that equals £417. Nine percent of that is £37.53 – the amount taken from your wage each month. Sound affordable?

Some students, such as those who work part-time and so don’t meet the monthly threshold, may find they don’t repay back their loans.

Any outstanding balance on your student loan will be written off after 40 years.

What about the interest?

Interest on student loans is now charged in line with RPI (a measure of inflation), which is currently 4.3%. This is a lower level of interest than before. It used to be RPI plus 3%.

It’s important to remember that if you don’t earn over the threshold and so don’t make any loan repayments, your balance will still be accruing interest. 

Do student loans affect your credit score?

Student loans aren’t like a typical bank loan. They don’t affect your credit score for things like credit cards, phone contracts, or utility bill applications.

They may have a small effect if you apply for a mortgage. This is because banks use your net pay (what you take home after tax etc) for their affordability checks and any student loan repayments will of course reduce your monthly net pay.

When should you apply for student finance?

You can start applying for student finance in the spring before your course starts. So if you’re thinking of joining us in September 2025, applications will open in March/April 2025.

You don’t need a confirmed place and it can be a good idea to allow time to get your paperwork together before you apply.

You can apply as late as nine months after starting, but get your application in early to ensure you’re paid promptly.

Only you can decide if Higher Education is affordable for you. If you have any concerns about financing your course, speak to our student support team here at University Centre Rotherham on 01709 722 823. They may be able to advise about whether there are any specific grants or funds that you are eligible for to support your studies alongside a student loan application.

Cash in on these money-savvy tips before you start at University Centre Rotherham

• Open a student bank account with perks such as an interest-free overdraft, cashback or free railcard (particularly helpful if you’re commuting from the Dearne Valley area, Sheffield or Worksop).
• Start squirreling away any spare cash before your course starts to prop you up in those first few months.
• Get your head around budgeting and what your monthly costs are likely to be (travel, food, board/rent/mortgage). There are some great apps available if you’re not keen on making your own spreadsheet.
• Set up a side hustle to bring in extra cash. There are lots of ways you can turn your free time and talents into money in the bank, from paid surveys and affiliate marketing to tutoring and freelancing. You can earn up to £1,000 a year from side hustles before you pay tax.