Tuition fees: your questions answered

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Q: How much will I have to pay?

It depends on where you are going to study. Many universities are charging the full whack but some have a range of tuition fees and some fees on course in some universities are lower. 

Q: Where will I get the money from?

Article _clearingtuition 02The good news is you don’t have to save up the money to pay as you go, or get your parent’s to stump up the massive amounts of cash required. Tuition fees can all be paid through a tuition fee loan, which is available to all and is not means tested. After you graduate, you start paying your loan back when you earn over £27,295 (that will rise with inflation over the next few years) and then you pay back 9% of your earnings. All debts not paid back after 30 years will be written off.

Q: Does tuition fee loans cover my living expenses?

Sadly, no. The £9250 per year you will owe back will be added to another loan you will need to take out to pay for your living expenses – rent, food, entertainment, clothes etc. More information about these loans can be found here.

Q: How long will it take me to pay my loans back?

Article _clearingtuition 03It depends on how much you are earning after you graduate. If you pass the threshold £27,295 (annual income), you are required to pay 9% of your earnings. However, many people earning over that amount will still not pay the full amount within 30 years. After 30 years, the loan is written off.

If you never earn over the threshold, then you will not have to pay back a penny.

Q: Can I pay back my loan early?

Tricky one this; although this is technically possible, it might not make financial sense to do so. If you have other debts with higher interest, it could be better to pay those off instead. You can read an in-depth guide about paying back loans early here.