What types of funding can I get?

Do you know your scholarships from your bursaries? What about grants and student banking? There are over 3,000 different funding opportunities that you might be eligible for as a student, read on to learn the basics of student funding.

Student Loans

The first place to start is the official Student Loans Company. This government-backed scheme is the cheapest long-term debt you’ll ever get. Although you pay interest, the rate is linked to inflation, so in effect you will broadly repay the same amount that you borrowed in the first place.

 The scheme can offer two types of support:

• Student Loan for Tuition Fees – obviously, this will help pay your course fees and is paid directly to the university or college. The Student Loan covers your fees in full (up to £3,290 for 2010/11 or £3,225 for 2009/10).
• Student Loan for Maintenance – to cover the essential day-to-day stuff like rent, bills, travel and books. The amount you can borrow will be assessed on factors such as your household income, and the cash will be paid directly into your bank account at the start of each term. The Student Loan for Maintenance is worth up to £4,950 if you live away from home, or more if you choose to study in London.

There’s nothing to repay until after you graduate, and even then you only repay 9% on your earnings above £15,000 – if you earn less than that you won’t have to repay a thing. Put it this way, someone earning the average £18,000 starting salary for a graduate would repay £5.19 a week – the price of a couple of pints of lager if you’re lucky!

Grants and Bursaries

These are practically free money! Grants and bursaries, whether given by the government, your college or university, or a charity, are free money that you don't have to pay back.

Up to two-thirds of students are eligible for the government’s Maintenance Grant, sometimes referred to as the Special Support Grant. This cash is targeted at students from lower income families, with one-third of students eligible for the full amount - almost £3,000.

 All universities and colleges will offer a range of bursaries. In fact, any student who pays full tuition fees and gets a full Maintenance Grant is guaranteed to be offered a minimum bursary of at least £329, although some institutions offer more than £1,000.

 Your university will also have an Access to Learning Fund, which quite simply offers hardship grants for students in financial difficulty. Access Funds tend to run out quickly, so it’s best to get your application in as early as possible.

 As well as government grants and university bursaries, hundreds of charitable trusts and foundations run their own grant schemes. These can offer sometimes smaller-scale, but just as important, financial support. Have a search through the Student Cash Point directory to find what’s available to you.

Scholarships

Again these tend to be non-refundable, just like bursaries or grants. They can be offered by colleges, universities and charities, whilst some companies will also provide industrial scholarships or sponsorships. The main difference from a bursary is that scholarships tend to be awarded on merit, for example academic achievement, sporting excellence, where you are from, or what subject you are studying.

 There are some weird and wonderful funding schemes available. How’s about the John Lennon Memorial Scholarship, for students in Merseyside who have a passion for environmental issues, or the Onassis Foundation Scholarship to support postgraduate study at a Greek university?

Student Bank Accounts

All the big high street banks have special student offers. The best thing about these accounts is that they offer an interest-free overdraft, up to a set amount, so you can pretty much borrow money for free rather than pay crippling interest rates. Oh, and to try and tempt you to sign up, many banks offer tasty little sweeteners like free MP3 players and discounted rail travel, so there might be a few extra perks available!

Benefits

These are especially important to part-time students, students with children, or those with disabilities. There are a number of schemes, such as Income Support, Housing Benefit, and Incapacity Benefit that you may qualify for.