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2008/9 New starters

Eligibility

Eligibility depends upon the following factors:

  • Residency (refer to PN1 notes, section 3)
  • Any previous funding you have received for Higher Education
  • Your age
  • The type of course you want to do
  • The university or college you wish to attend.

Support falls into three main categories:

1. Tuition Fee Loan

Universities in England and Northern Ireland may charge students up to a maximum tuition fee of £3145 per year. However you will not have to pay this up-front to your university or college. You will be able to claim a Fee Loan to cover the full amount of the tuition fee. This Fee Loan is not assessed against your household income. The Fee Loan will become repayable in full after you complete your course, and only once you earn a minimum of £15,000 per year. In Scotland most courses are proposed to cost £1,700 per year for all English students. In Wales courses will cost £3,000 per year from 2008/2009 for all students. Fee Loans will be available to cover the tuition fees regardless of which part of the country you choose to study in.

2. Maintenance Grant or Special Support Grant

A. A Maintenance Grant of up to £2835 is available per year to help with the living costs of students from low-income families. The amount you could get is means-tested (assessed against household income). If your gross household income is less than £34,450 then you should receive part of the grant, and if your gross household income is less than £25,001 then you should receive the full £2835 grant ( please refer to the chart below). This grant is non repayable, however your student loan will be reduced by up to £1260 depending on the amount of maintenance grant you are eligible to receive.

B. As an alternative to the Maintenance Grant, a Special Support Grant of up to £2835 will be available for people in receipt of certain benefits, such as some students with dependant children, students over 60, or students in receipt of Disability Living Allowance or Incapacity Benefit. Entitlement to the Special Support Grant will be calculated using exactly the same income-assessment rules as the Maintenance Grant, and will be paid instead of the Maintenance Grant, if you are in one of the specified vulnerable groups. The difference is that, unlike the Maintenance Grant, your loan entitlement will NOT be affected.

3. Maintenance Loan

The Student Maintenance Loan is to help towards your living costs. Part of the loan is means-tested. There are different rates of loan depending upon whether you are studying in London or elsewhere, or staying in your parents’ home instead of lodgings or Halls of Residence.

This loan is repayable in full, alongside the Fee Loan, after you complete your course, and only once you earn a minimum of £15,000 per year.

However your loan entitlement will also be reduced by £1 for every £1 of maintenance grant payable up to a maximum of £1260. For example, if you are eligible for the full maintenance grant of £2835 then your maximum loan entitlement of £4625 will be reduced by £1260, meaning the loan now available is £3365. If your grant entitlement is £800 then your loan entitlement is reduced by £800, meaning the loan now available to you could be £3825. Below are some examples of maximum possible entitlement to living cost support (grant + loan) based on gross household income.

Special Support Grant

As an alternative to the Maintenance Grant, a Special Support Grant of up to £2835 will be available for people in receipt of certain benefits, such as some students with dependant children, students over 60, or students in receipt of Disability Living Allowance or Incapacity Benefit. Entitlement to the Special Support Grant will be calculated using exactly the same income-assessment rules as the Maintenance Grant, and will be paid instead of the Maintenance Grant, if you are in one of the specified vulnerable groups. The difference is that, unlike the Maintenance Grant, your loan entitlement will NOT be affected.

Maintenance grant and loan entitlement: illustrative levels of income

Income (£) Assessed contribution (to main loan) (£) Maintenance grant (£) Maintenance loan (£) Total grant plus loan (£)
Student living at home Maximum £3,580 (*)
25,000 0 2,835 2,320 5,155
30,000 0 2,002 2,320 4,322
34,450 0 1,260 2,320 3,580
40,000 0 998 2,582 3,580
50,000 0 524 3,056 3,580
60,005 0 50 3,530 3,580
61,061 0 0 3,580 3,580
65,000 414 0 3,166 3,166
69,564 895 0 2,685 (+) 2,685
70,000 895 0 2,685 2,685
Student studying in London Maximum £6,475 (*)
25,000 0 2,835 5,215 8,050
30,000 0 2,002 5,215 7,217
34,450 0 1,260 5,215 6,475
40,000 0 998 5,477 6,475
50,000 0 524 5,951 6,475
60,005 0 50 6,425 6,475
61,061 0 0 6,475 6,475
65,000 414 0 6,061 6,061
70,000 940 0 5,535 5,535
76,451 1,620 0 4,855 (+) 4,855
80,000 1,620 0 4,855 4,855
Student studying outside London Maximum £4,625 (*)
25,000 0 2,835 3,365 6,200
30,000 0 2,002 3,365 5,367
34,450 0 1,260 3,365 4,625
40,000 0 998 3,627 4,625
50,000 0 524 4,101 4,625
60,005 0 50 4,575 4,625
61,061 0 0 4,625 4,625
65,000 414 0 4,211 4,211
70,000 940 0 3,685 3,685
72,034 1,155 0 3,470 (+) 3,470
80,000 1,155 0 3,470 3,470

(*) Where students are eligible for more than £1,260 of grant, the amount of loan for which they are eligible will be reduced by £1,260.

(+) is the point at which the 75% non means tested element of the loan is reached.

For income between £25,001 and £34,450, the grant is reduced by £1 for every complete £6 by which the income exceeds £25,000. For income between £34,451 and £60,005, the grant is reduced by £1 for every complete £21.12 by which the income exceeds £34,450.

A student whose income is £60,005 will be eligible for the minimum grant of £50. A student whose income exceeds £60,005 will not be eligible for any grant.

Special support grant and loan entitlement chart

Income (£) Assessed contribution (to main loan) (£) Special support grant (£) Maintenance loan (£) Total special support grant plus loan (£)
Student living at home Maximum £3,580
25,000 0 2,835 3,580 6,415
30,000 0 2,002 3,580 5,582
34,450 0 1,260 3,580 4,840
40,000 0 998 3,580 4,578
50,000 0 524 3,580 4,104
60,005 0 50 3,580 3,630
61,061 0 0 3,580 3,580
65,000 414 0 3,166 3,166
69,564 895 0 2,685 (+) 2,685
70,000 895 0 2,685 2,685
Student studying in London Maximum £6,475
25,000 0 2,835 6,475 9,310
30,000 0 2,002 6,475 8,477
34,450 0 1,260 6,475 7,735
40,000 0 998 6,475 7,473
50,000 0 524 6,475 6,999
60,005 0 50 6,475 6,525
61,061 0 0 6,475 6,475
65,000 414 0 6,061 6,061
70,000 940 0 5,535 5,535
76,451 1,620 0 4,855 (+) 4,855
80,000 1,620 0 4,855 4,855
Student studying outside London Maximum £4,625
25,000 0 2,835 4,625 7,460
30,000 0 2,002 4,625 6,627
34,450 0 1,260 4,625 5,885
40,000 0 998 4,625 5,623
50,000 0 524 4,625 5,149
60,005 0 50 4,625 4,675
61,061 0 0 4,625 4,625
65,000 414 0 4,211 4,211
70,000 940 0 3,685 3,685
72,034 1,155 0 3,470 (+) 3,470
80,000 1,155 0 3,470 3,470

For income between £25,001 and £34,450, the special support grant is reduced by £1 for every complete £6 by which the income exceeds £25,000. For income between £34,451 and £60,005 the special support grant is reduced by £1 for every complete £21.12 by which the income exceeds £34,450.

A student whose income is £60,005 will be eligible for the minimum special support grant of £50. A student whose income exceeds £60,005 will not be eligible for any grant.

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