2009/10 student finance

If you want to study after the age of 18 years,Knowledge is becoming decidedly more expensive.

Debts

Barclays predicts students graduating in 2010 will face £30,000 debt, and the Universities UK report published in
March found that by 2016, the average graduate debt would be £26,400 if the fees are increased to £5,000. Many Universities are
advocates for more money to meet the rising costs of higher education.

Although the figures show that graduates can expect higher than average income, well-paid jobs may not occur at
number of years after high school. And for many the premium in earnings may not be enough to clear their
personal debt pile for decades.

So unless you have rich parents, it is wise to learn about and prepare for the different areas of student finance, each with associated costs.



Tuition

As the name suggests, these are the fees payable for the actual course you want to take. Were introduced in 1998/1999.
Previously the costs were paid by the government. This change was made to help fund a growing appetite for more
education and that during their working life can graduates can gain £400,000 more than non-graduates.

Not everyone has to pay tuition fees. If your parents' combined earnings are under a certain threshold they will not have
to pay a penny. From the threshold upward, the contributions operate on a sliding scale.

University in 2010/11 to increase fees 2.04% on £ 3,290. Fees are currently £ 3,145 a year, but increased to £ 3,225 in 2009/10,
and £ 3,290 per year.

Once you are accepted on the course - even conditionally - you should apply to your Local Education
Authority (LEA) to determine what financial support you can expect. Even if you think that there is little chance
that you will need to pays less than the maximum fee, it's worth asking.

The family income threshold for a full maintenance grant will remain at £25,000 and at £50,020 for a partial grant.
Around two-thirds of students receive a full or partial grant, although partial grants are often minimal at less than £500
per year.


Student Loans

Most students will need to finance their day-to-day lives by one or more student loans. These loans are unsecured
with extremely low interest rate, which reflects the rate of inflation. This means in real terms, you only pay back
The exact amount you borrowed.

You should contact your LEA for a loan at the same time you apply for aid for tuition. Your LEA will assess
amount of credit you are entitled, and prompts you to say how much you want to use. (If you
Studiy in London, you will be entitled to more.) Then you need to tell, Student Loans Company (SLC) of this amount, and
It will pay money to your account on the first day of term.

You can apply for a loan for each year of your courses and you do not start making repayments until April
After graduating and then only if you earn above a certain threshold, although this amount is quite low. The amount you repay each
month will depend on how much you earn. In the unlikely event that you never earn over the threshold, the credit will be
wiped when you turn 65.

Maintenance grants for students at university in 2010/11 will be frozen at £2,906, while fees increase
Loans to cover the fees will increase, but because there is no increase in loans to meet living expenses.


Student overdrafts

Most large banks offer interest-free overdraft on their student accounts in the hope that you
remain loyal to them, when you start earning big money in the future.

The amount you get will depend on the overdraft at the bank and will apply to all applicants of their students. Good benchmark
is about £ 2,000 interest-free.

Although the current account does not cost anything if you stay within its borders, if you go over your overdraft, you will be charged a hefty fee
interest rates on the difference - and usually one-off unauthorized overdraft fee as well.

As regards repayment of an overdraft, there is no specific time limit. But after leaving university, interest-free overdrafts
simply evaporate and you will be charged at the same high prices that apply to overdrafts on standard current accounts. It
It is worth noting that some banks provide a grace period after graduation to the higher rate kicks in.

Credit Cards

Banks rarely make favorable conditions for student credit cards. If you have a credit card from a bank, you will pay exactly the same
high interest rates as everyone else. The only difference is that the student credit card has a lower borrowing limit.

If there is any way you can get through university without a credit card, do it. The typical £500 that you will be able to
access on a credit card will hardly determine whether or not you can stay at college – more likely you will end up sitting
on the balance while paying high interest rates for three years having forgotten what you spent it on.