Student finance myths

There is a lot of information available about student finance and it can be difficult to know what is correct. This guide is designed to help you find the truth amongst the myths you may have heard.

Tuition fees need to be paid upfront at the start of each academic year

False! Full time 'Home' and 'EU' undergraduate students are usually not required to pay tuition fees upfront whilst at university. Instead, they can apply for a Tuition Fee Loan to cover the cost of their fees, provided they are eligible. You do not have to start repaying this loan until the April after you have finished or left university and you are earning over £15,000 per year (UK figure only). For further details and eligibility, visit www.direct.gov.uk/studentfinance.

My application for Access to Learning Fund was handed in two weeks ago and I have not heard anything. My application must be unsuccessful

False! After receiving an application to the Access to Learning Fund, the Financial Guidance team hopes to be able to inform students of the outcome within four weeks. We will write to you to notify you of the outcome, providing all relevant sections of the form have been completed and supporting evidence submitted. Alternatively, the team may request further information from you to support your application so that a decision can be made.

Students are automatically exempt from paying for NHS prescriptions

False! Students can apply to have their prescription costs waived but the entitlement is not automatic. Students have to complete an HC1 form (available from the doctor's surgery) to have their income means tested and if they are eligible, they will receive an exemption certificate.

I live in a shared house with four other students so we do not have to pay Council Tax

True! There is no Council Tax to pay where all the adults aged 18 or over in the household are full-time students. However you still need to provide a copy of your Council Tax exemption certificate to your landlord or local council office. Full-time students usually receive a Council Tax exemption form at enrolment.

I'm a full-time student so I am exempt from paying Council Tax automatically

False! Full-time students are usually exempt from paying Council Tax, however you must notify the council and provide them with a copy of the Council Tax exemption certificate you receive at enrolment. If you are living in a house with any adults who are not students, then as a student you are usually still exempt from paying Council Tax but the household may still be liable to pay 75% Council Tax.

I do not want to take out a student loan as I do not want to be in debt. The interest is really high and there is no other funding available

False! Student loans (for tuition fees and maintenance costs) have a low rate of interest, linked to the retail price index. You will not usually have to start repaying your loans until the April after you have finished or left your course and your income has reached £15,000 per year (UK figure only). You then repay the loans at a rate of 9% on any income over this threshold. For further information on student loan interest rates and how this is calculated please visit www.studentloanrepayment.co.uk/. If you decide not to take out a Maintenance Loan you can still apply to be assessed for a Maintenance Grant and University Bursary (if eligible). However, as the Maintenance Loan is a primary source of statutory funding for undergraduate 'Home' students to help towards living costs, you may not be eligible to be assessed for further financial assistance from other sources such as the Access to Learning Fund if you do not take out your full entitlement.

I was on benefits before I started my course; if I take out a student loan they are going to stop all my benefits

False! If you have been receiving benefits before starting your university course, please seek advice from the benefit provider concerning any effects receipt of the Maintenance Loan would have. The Tuition Fee Loan and the Special Support Grant (as well as grants such as Parents' Learning Allowance, Childcare Grant and Disabled Students' Allowance) should not be treated as income by the Department of Work and Pensions when assessing students for means-tested benefits.

I will struggle to repay my student loans

False! Student loans are not like commercial loans offered by banks. Repayments are linked to your level of income, not the size of your debt - so repayments are calculated by what you earn, not what you owe. The interest rate is usually lower than many commercial loans. For further information on student loan interest rates and how this is calculated, please visit www.studentloanrepayment.co.uk/.

When I graduate, if I earn £16,000 my student loan repayments will be £70.75 a week

False! The real deduction from your pay packet is £1.73 week; that's £90 a year. Graduates earning the average annual graduate starting salary of £19,300 would repay £7.44 a week (source: HESA Destinations of Leavers from HE Survey 2007).

I do not have to repay my student loans if I move abroad and work there instead of the UK

False! If you intend to leave the UK and move abroad to work for more than three months you need to contact The Student Loans Company. You may still have to repay your loan if your earnings are above the income threshold, however, the income threshold may be different to the UK threshold. If you do not let the Student Loans Company know about your change in circumstances, you may have to pay penalties.

For further information on student loan repayments thresholds from overseas, please visit www.studentloanrepayment.co.uk/.

I am from a low income family; I do not have to pay tuition fees because my parents do not earn enough

False! All students enrolling on a Higher Education course are liable to pay tuition fees unless the course you are considering is Nursing, Midwifery, or another associated health profession (AHP) programme such as Occupational Therapy or Podiatry (the tuition fees for these courses are usually paid by the NHS).

I do not live with my parents and have not done for the past year so I will not be assessed on their income

False! You will only be assessed on your own income if you are classed as an independent student. You will be classed as an independent student if you are:

• Aged 25 or over before the first day of the first academic year of your course; or
• You are married before the first day of the first academic year of your course; or
• You are able to show that you have supported yourself for the three years prior to the start of your course; or
• You have care of a child; or
• You have no living parents or you can demonstrate that you are estranged from your parents

I do not have to apply for my loan/ NHS bursary each year as it will come through automatically

False! Student funding must be applied for each academic year of study. Students are notified by the appropriate funding body of opening and deadline dates for these applications. It is your responsibility to ensure you have completed the applications by the deadline date to ensure funding is in place for the beginning of your new academic year.

My loan will be paid to me as soon as I enrol

False! Although your paperwork may give you an estimated date of arrival of funds, it will take approximately five working days from the date of enrolment for funds to reach your account.

I can leave applying for my loan until the week before I start my course

False! Student Finance England and NHS Student Bursaries estimate a time period of six to eight weeks for student finance applications to be processed. If you would like funds to be available for the start of your course you will need to ensure you apply for funding early. Students who wish to make an application to Student Finance England may be able to apply as early as March for the new academic year starting in September.

Please do not put off making your application for funding until the last minute because you may find you have to start the year with no money. If there are problems with your funding at the beginning of the academic year, then please contact the Financial Guidance team. We may be able to assist you with a short-term Bridging Loan until your funding comes through (other eligibility criteria apply).

If I do not apply for my loan, the University will give me or loan me what I need

False! It is your responsibility to apply for funding and to apply early. If you decide not to take out statutory funding support such as student loans, The University of Northampton cannot financially support you. The Access to Learning Fund and Bridging Loans are only available to those students who have made an application for student funding but whose funding has been delayed and those who are experiencing financial hardship.

I have heard that because I am doing a BA or BSC course I will definitely be entitled to a University Bursary

False! Not all students are entitled to the University of Northampton Bursary; this provides further information about eligibility criteria.

I have run out of money so the University has to give me a loan

False! It is the student's responsibility to make sure they keep control of their spending. The payments you receive from Student Finance England or NHS Student Bursaries are supposed to last you throughout the term. The University is not able to give you a loan if you have run out of money, unless it is an emergency. See further information about applying for an Emergency Loan.

Students who are concerned about making their money last are encouraged to refer to budgeting and money management which includes help on making a budget, budgeting tips and other useful contacts. Students can also contact the Financial Guidance team to discuss their issues and, if necessary, an appointment can be made with a member of the Citizens Advice Bureau.

I do not really need to provide all the evidence you ask for when filling in my Access to Learning Fund Form

False! The Financial Guidance Team aim to complete all Access to Learning Fund assessments within four weeks; however this can only take place if we are given all the relevant information. If we have to ask you for further information this will delay your assessment.

I can pick up an application form to apply for my student Maintenance Loan and/or Tuition Fee Loan at the Student Centre

False! In order to apply for your student loans for Maintenance and Tuition Fees you need to either:

• Fill out an online application; or
• Contact Student Finance England to ask them to send you a paper application form or download the appropriate application form from their website www.direct.gov.uk/studentfinance

I owe money to the University, I can still re-enrol

Not necessarily! If you have outstanding debts to the University, you may not be able to re-enrol. Please contact the Finance department and/or Financial Guidance team for further assistance.

I've received the University Bursary; I can't apply to the Access to Learning Fund

False! You can still apply. However, an application to the Access to Learning Fund does not guarantee an award. The team will consider the income the student receives over the academic year and this will include their Student Loans/NHS Bursary, University Bursary, savings, etc as well as their expected expenditure throughout the year. For further information about making an application please visit Access to Learning Fund.

I've been declared bankrupt; I can't take out a student Maintenance Loan

False! Although bankruptcy may affect your ability to access credit and many commercial loans, you may still be able to apply for a student loan from Student Finance England (other eligibility criteria will still apply).

If I go bankrupt, my student loan will be written off

False! You cannot write off any outstanding student loan balances if you declare yourself bankrupt.