Money issues
On this page:
Introduction
Tuition fees
Main sources of help
How is student support structured?
How to apply
What about intercalating?
How are student loans repaid?
Help available to certain groups of students
How to raise some extra cash
A basic student budget
What sort of support can I expect at university?
More information
Tuition fees
Most people are aware of the new system that is coming in for the academic year beginning 2006: the introduction of 'topped-up' tuition fees. This varies between institutions, but it is expected that all institutions that offer medicine as a degree will be charging the maximum £3000 (because they are usually the biggest universities in the country). You will get a 'fee loan' during your time at university to cover the fees and then you will have to pay that back gradually once you start earning over a certain amount. Therefore tuition fees don't have to be paid until you graduate. However, as of 2006 there are far more grants and bursaries available! The government will be handing out more grants and in addition, individual universities will offer various bursaries and scholarships. You may want to check out which universities offer the best bursary/scholarship scheme before you apply.
Please note that those embarking on medicine as a second degree i.e. graduates will NOT be elligible for the fee loan and this money will have to be sourced from other areas (they will still be eligible for a maintanence loan though). Graduates, however, will still be elligible for help from the Department of Health (see below) in years two to four if they are on a four year graduate entry programme or year five on a non-graduate course.
Main sources of help
1) Maintanence loan
If you are eligible for support you will be entitled to 75% of the full maintenance loan regardless of your, your parent's, or your partner's income. The final 25% is means tested and dependent on the assessment the LEA has carried out. The amount of maintenance loan you get depends on where you live: there are three bands: 'living at home', 'living away from home' or 'living away from home and in London'. The amount you get can be found here (link opens in new window).
2) Fee loan
You will never 'see' any of the fee loan - it gets directly paid to the university to cover your tuition fees.
3) Maintenance grant
This is a means tested grant for low income families and is given on a sliding scale from the Government. Applications will be considered at the same time as the assessment for student support through your LEA.
4) University grants and scholarships
Universities now offer more grants and scholarships. Check their websites to find out more.
5) Help from the Department of Health/NHS
This occurs in year five of standard medical course, years five and six if you intercalate or do a foundation year and years two, three and four if you are on a graduate entry course.
You can do a funding search for scholarships by clicking on Funding on hotcourses.co.uk (opens in new window).
How is student support structured?
As a medical student your degree will be funded in a slightly different way to other undergraduate courses. The first four years of study are funded the same way as everyone else, through your Local Education Authority (LEA) which is a part of your local council. Nursing, midwifery and radiography courses are funded totally different to medicine.In the final (usually 5th but in some cases 6th) year of the course the Department of Health will pay everyone's tuition fees and you may be eligible for a means tested grant (not repayable - i.e. free money!). Application for funding is considered by the NHS Student Grants Unit (link opens in new window).
So in summary it looks something like this:
Year 1 - LEA (England and Wales)/ SSA (Scotland)
Year 2 - LEA/SSA support
Year 3 - LEA/SSA support
Year 4 - LEA/SSA support - clinical year so maintenance loan is paid for full 52 weeks
Year 5/6 - NHS means tested bursary and tuition fees paid by NHS (also still may be elligible for maintainence loan)
Please note that those on a four year graduate entry course will have their tuition fees paid by the NHS/Department of Health in years two, three and four.
How to apply
The first thing to do is to fill out a form! Complete the PN1 form, available from your Local Education Authority (LEA) or download it at www.dfes.gov.uk/studentsupport (link opens in new window). The PN1 form establishes how much student support you are eligible for. The form will ask for detailed financial information and documentation about all parental income for the tax year prior to the start of your course. So if you are starting your studies in October 2006 they will want to know about the tax year April 2005-April 2006. You will be sent guidance notes with the form. Read these notes!! If the forms are filled in incorrectly it may delay your application. To be eligible for student support you also need to fulfil some residency requirements:
- Settled status in the UK
- Three years ordinary residence (i.e. for purposes other than education)
If you think you may have difficulty fulfilling this criteria you should take advice as soon as possible from your LEA or if you are currently at university see your Student Union Welfare/Advice Services.
You can apply for your student support package in the February before you start your course.
What about intercalating?
As some of you may be aware, the opportunity may arise to take a year out after completion of at least 2 years of the medicine programme, to study for a one year BSc/BA/BMedSci in a related field. If you are funded by your LEA you can continue to apply for tuition fee support and your maintenance loan for that year i.e. nothing changes. It is advisable to contact your LEA to confirm this prior to applying for a place on an intercalated degree. LEA funding for an extra year does not affect future years funding or entitlement to NHS bursary and fee support in year 5 i.e. you will still get help from the Department of Health in your fifth year of study and above (only it will be your fourth year of medicine).
How are loans repaid?
The Student Loans Company (link opens in new window) starts requesting repayment the April after you graduate. The maintenance loan and fee loan are lumped in together and you only start paying once you're earning enough money. Once you do get a job, the Inland Revenue will deduct from your income and credit the Student Loan Company (SLC) automatically. Interest rate is in line with inflation. For current terms and conditions see the Student Loans Company (link opens in new window) website.
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Help available to certain groups of students
There is extra help (i.e. grants or bursaries) for certain students. It's best to contact your LEA (or Student Union's Advice Centre/Welfare Services if you are currently at university) to see if you qualify for these.
- Disabled students Allowance
- Parents Learning Allowance
- Childcare Grant
- Child Tax Credit (Inland Revenue)
- Adult dependant grant
- Care Leavers Grant
How to raise some extra cash
And on top of this there are some other sources of income to consider: - Part-time work: Most university unions will have a job shop advertising part time jobs with local employers. But bear in mind that if you are studying medicine, the time available to undertake part time work is very limited, particularly in the later years of the course. So take advantage of those holidays in the early years!
- Parental contribution: For parents; if you are able to assist, make a commitment and explain how it will work. Avoid lump sums - setting up a standing order is often a really good way to structure it.
- State benefits: very few students are eligible for these, however, if you have a disability or dependants you should check your entitlement.
- Scholarships/bursaries - Scholarships are often available to certain groups of students, and the closing dates for these are usually May preceding the start of the course. Check the university websites out for details.
- Local charities and grant making trusts where you live may also be able to assist, try your local library as they usually keep lists of these.
- Access to Learning Fund (previously the Hardship Fund): all higher education institutions are given a pot of money each year for students in hardship. Further details should be available from student union welfare services.
- Bank overdrafts: all banks are very keen to get student custom, and they especially like medical students! Incentives such as railcards, cash and money-off vouchers are useful but in the long run other things might help you out more. Look out for good interest rates, low charges and facilities for graduates.
- Professional Study Loans - Many banks offer these for medical students (they are sometimes known as professional trainee loan schemes). Repayments are often deferred until first job commences.
- Prizes. When you are at medical school there are often essay prizes and research opportunities to gain a few extra pennies!
A basic student budget
Budgeting is an acquired skill at university. With student debt becoming more a concern, it is important that prospective students learn the fine art of managing their money! The Student Money website (link opens in new window) has a good interactive budget section. Some things to think about include:
- Food, housekeeping, home essentials
- Toiletries
- Bills (gas, electric, water, TV licence, internet, phone)
- Travel (local and national)
- Clothes, shoes
- Leisure, sport, societies, music
- Books, stationary, computing
- Socialising
- Holidays
- Laundry
This page gives a good guide to all sorts of living costs: Cost guide (link opens in new window).
What sort of support can I expect at university?
All student unions will have a student advice centre that can offer specialist money, housing, academic and immigration advice. This is usually made up of a team of professional advice workers. They can give information on any aspect of student welfare and provide advice and representation in the specialist areas of housing, money, immigration, and academic procedures. They can also give basic advice in a number of other areas including employment rights and other legal rights. In addition there are numerous other student services on campus at universities that can you talk to. These will usually include:
- Counselling services, offering free counselling to students registered at the University
- Disability Services, providing information, guidance and support to disabled people who study at the University
- Chaplaincy, providing a pastoral service to students of all faiths and none
- Personal tutors, who are there to discuss and help with any matter, academic or personal
- Student Unions are a wealth of advice and can offer help with budgeting or if you get into money trouble whilst at university.
More up to date information can be found on the following websites (links open in new window):
Government's guide to student finance
Aim Higher's guide to student finance
Student money
Student loans company
Student finance direct
Find your LEA
BMA
Guide
Money4MedStudents
