Student Loan Amounts Unchanged Whilst Fees Increase
Those people amongst us who went to university in the past are well aware of the distinct shortage of money during student life, even if we’d saved up before we started and got a job behind the student bar once we were there.
If you’re as old as I am, you might have been lucky enough to receive a student grant, but those days are long gone and anyone continuing in full time further education are now dependant on a student loan to get them through, all of which has to be repaid in full once the student starts to earn more than £15,000 per annum.
In normal years, the total amount of a student loan increases in line with inflation and tuition fees, however, this year the government have announced that the maximum maintenance loan will not increase, despite university fees and living costs increasing and will remain at the same level as this year, although loans for course fees will increase by 2.04 per cent to a maximum of £3,290 per annum.
Eligibility for student loans is means tested against parent’s income and many students will not receive the full amount of loan possible due to this. Those students whose parents earn less than £25,000 per annum between them may still be eligible for a grant, but this level has also remained fixed at £2,906, hardly enough to keep their child in baked beans and beer!
Currently, the average student leaves university with student loan and other personal loan and credit card debts in excess of £20,000 and this latest news does not bode well for those individuals who will be starting their university education next year. It seems that the prospect of a university education is once again becoming a privilege which is restricted for those students who’s parent’s can afford it.
