University Tuition Fees 2012 and Financial Support

It's all changed on the financial front for undergraduate entry from 2012. Below we summarize the implications of the changes, together with the detail for England, Wales, Scotland and Northern Ireland.

Students currently considering University for 2012 or 2013 entry should be aware of the implications.
Students going to University in 2011 will not be affected but will remain under the current system for the duration of their degrees.
Students considering a gap year and enrolling as first years at University in 2012 will be under the new system.
Students from outside the EU will not be affected by these changes and will continue to pay international fees.

Students planning to start University from 2012 should visit our Student Loan Repayment Calculator for an indication of how much they might repay and over what period of time.

For 2012 fees please see the university profiles.

The Implications

Reasons for changing the system and what this means for you

Applicants will be able to take out a Tuition Fee Loan to cover the fees charged and this will be paid direct to the university.
No student will have to pay up front for their tuition but will only start paying back the Loan after they have graduated and only then if they are earning over £21,000 (this compares with a current repayment threshold of £15,000 for graduates leaving universities).
Applicants going to universities in 2012 will graduate in 2015 at the earliest and it is only afterwards (in April 2016) that those with a job earning more than £21,000 will begin to repay the loan.
Their monthly payments will be lower than those operating under the current system but they will have to repay over a longer period of their working lives.
Graduates will be liable to commence repayment of their student loans when their income exceeds £21,000. They will pay 9% on the balance of their income above £21,000. This will be collected through income tax administration. If their income falls below £21,000 for a period of time the loan will go into abeyance and repayments will not be reactivated until such time as earnings rise above the threshold of £21,000. After 30 years the loan will written off if it has not been repaid.
The loan will accrue a real rate of interest equal to:

Inflation (RPI) for graduates earning below £21,000
RPI to RPI+3% for graduates earning £21,000-£41,000
RPI+3% for graduates earning above £41,000

This means that a graduate earning less than £21,000 has essentially received an interest-free loan.
Original plans to impose early repayment penalties on graduates are currently being reviewed.
In addition to the tuition fee loan described above, the government is putting in place various loans, grants and scholarships for applicants coming from less affluent backgrounds.
All full-time students will be eligible for maintenance loans irrespective of income but these will have to be repaid on the same basis as the tuition fee loans.
These loans will vary in amount and are dependent on whether you live at home, away from home, or away from home in London.
Students from families with incomes below £25,000 will be entitled to a maintenance grant of up to £3,250 for help with their living costs whilst those from families with incomes up to £42,000 could receive a partial grant. These grants are yours to keep and, unlike a loan, do not have to be repaid.
A new National Scholarships Programme will benefit bright potential students from poor backgrounds by offering, for example, free first or foundation year tuition.

Good news for part-time students. For the first time, they will be entitled to a tuition fee loan so long as they are studying for at least 25% of their time but they will not be entitled to maintenance support.

The Detail

How this differs to the old system and the main things you need to know about the changes

The Government is making substantial cuts to university budgets and, as a result, is allowing the universities to introduce higher annual tuition fees.
A university can charge different fees for different courses. It is up to a university to decide what fees it will charge for the courses it offers.

England

All institutions will be permitted to charge £6,000 or more (this compares with a maximum fee for 2011 entry of £3,375).
The minimum course fees will range from £1,000 (only two institutions intend to charge this) to £9,000. The maximum course fees will range between £7,500 (only two institutions will charge this) and £9,000.

Financial Support

Everything you need to know

England (continued)

The average course fee across all institutions will be £8,393. When all the financial support from the universities and colleges is taken into account, the average actual cost to students falls to £7,793.
But Universities charging more than £6,000 must provide financial support for applicants from disadvantaged backgrounds. This support will come in many forms: fee waivers, accommodation discounts, bursaries and scholarships, including a new National Scholarship Programme. There will also be increased outreach activity to raise awareness and aspirations among students under-represented in higher education with a view to widening access and improving success. This might be through summer schools, more work in schools, mentoring and better advice and guidance.
This commitment is spelt out in each institution’s Access Agreement, approved in July 2011 by the Office for Fair Access (www.offa.org.uk).

Wales

The Higher Education Funding Council for Wales (HEFCW) has approved tuition fees ranging from £5,850–£9,000 for the ten Welsh universities. The average fee level will be in the region of £8,800.
The tuition fees are for full-time undergraduates. However, students in Wales will receive a non-repayable Fee Grant equal to the tuition fee amount over £3,465, no matter where in the UK they study.
On the back of these increased tuition fees, planned additional support includes a range of bursaries for students from low-income or disadvantaged background, mentoring to raise the aspirations of potential students in some of Wales’ most disadvantaged areas and a focus on priority subjects such as science, engineering and modern foreign languages.
There will also be more opportunities for students to study in Welsh, additional study and personal support within the universities, improved ICT and library facilities and support to improve student skills and work experience in order to enhance their employability.

Scotland

Students resident in Scotland will not pay tuition fees at Scottish Universities.
From 2012 (subject to Scottish parliamentary approval) Scottish Universities will charge annual fees of up to £9,000 to UK students domiciled in England, Wales and Northern Ireland (RUK students). The Scottish Government plans further legislation to cap fees at £9,000 p.a. from 2013.
All Scottish Universities have announced their 2012 tuition fees for RUK students. Annual fees range between £5,000 and £9,000; the estimated average annual fee will be £6,841.
Some Universities have capped the total fees for a four-year course at £27,000 (in effect offering a free year’s tuition); others will be encouraging students with suitable A-levels to enter the second year of certain degree courses, where this is academically appropriate.
Scottish Universities want to continue to attract RUK students in a competitive higher education environment and it is expected that the Universities will develop a range of generous scholarships and new bursary schemes.

Northern Ireland

From 2012–13, the maximum fee for Northern Ireland students studying in Northern Ireland will be £3,465; RUK (rest of the UK) tuition fees for 2012 will be £9,000 at Queen's.
There will be tuition fee loans for NI students, up to a maximum of £9,000.
The Maintenance Grant for NI students will be £3,475. Income thresholds for qualification will be: lower £19,203; upper £41,065.
Maintenance Loans: (home) up to £3,750; (elsewhere) up to £4,840; (London) up to £6,780.
Other support grants (e.g. Disability Learning Allowance, Adult Dependents Grant) will continue at 2011–12 rates.

So, applicants planning to go to Universities in 2012 will know what fees are going to be charged for their chosen courses.

Read more about the 2012 tuition fees announcement.

Managing Your Money

It's a limited resource. Make the best use of it!

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