How much do you think you need to enjoy university life to the fullest, including rent, food, clothes, social life, books and other equipment?
Was your guess £18,632 a year outside London, and £21,774 in the capital?
That’s what experts at Loughborough University calculated in a 2023 report, which found that average rent for student houses is £535 a month, while private rental accommodation can easily cost more than £1,000 in London. So, how can you afford it?
Student loans
The first step is to take out a student loan, though there are some differences depending on which UK nation you reside in, and in which you are applying to study. This is paid directly to your university to cover the cost of the degree itself, currently capped at £9,250 a year, and a maintenance loan paid directly into your bank account to cover university living costs. The maintenance loan value depends on where you intend to live during term time, and your parents’ income.
A student with a household income of £25,000 or less who lives at home can receive a maximum maintenance loan of £8,610 in the 2024/25 academic year. If that student lives away from their parents outside London, they could borrow up to £10,227, and up to £13,348 if they live away from home in London.
As household income increases, less money is granted, as it is expected that parents will cover the extra costs. The minimum amount, £3,790, is the maximum any student with a household income of £58,307 and above, who lives at home, can receive.
Both the tuition fee loan and maintenance loan need to be paid back, but only after you graduate and start earning a salary higher than the threshold for repayment, which is currently set at £25,000. You repay 9% of everything earned above this.
The interest rate on student loans is high – it’s currently at 8% as of August 2024, and is changed every September. However, at present all outstanding debt is wiped after 40 years.
All Scottish students studying in Scotland have their tuition fee waived if they contact the Student Awards Agency Scotland, and can apply for a maintenance loan and non-repayable bursary. These are also means-tested based on your parents’ income.
Part-time work
Part-time work most likely won’t cover the full cost of your time at university, but can be an excellent source of extra income.
During term time, finding a flexible contract with the option to pick up shifts when you’re available is ideal to manage academic commitments alongside working. Many agencies look for hospitality workers who can pick up shifts on a casual basis. It is worth looking for paid roles within the students’ union, which often offers flexible administrative work. For these jobs you will receive at least minimum wage, which is £8.60 an hour if you are aged 18-20, and £11.44 if you are 21 or over.
University terms tend to be quite short, with long holidays at Christmas, Easter, and in the summer, meaning there can be a good four to five months off in which to earn money. Think about places that require extra staff in holiday periods, in retail and hospitality for example, to help with the increased rush from Christmas to the new year, or places that are busy in summer such as tourist attractions, parks, festivals and concert venues.
International students are limited to working a maximum of 20 hours a week. As a home student, there is no official limit, but being a full-time student requires adequate time to study, and you should be careful to not take on so much work that it jeopardises your degree – the threshold is thought to be about 15 hours a week.
Scholarships, grants, bursaries
There is more help available in the form of scholarships, grants and bursaries, often funded by foundations or private individuals, usually from graduates of the university who want to help students from a similar background, or to promote access to industries where certain identities are underrepresented. It is worth checking your university’s website to see if you are eligible and to apply before the deadline. There are also scholarship search engines online.
Other ways to save
With rent becoming extortionate on a student budget, more students are choosing to live at home. Travel can be expensive, but it is worth considering whether commuting would be cheaper than renting.
Consider a degree apprenticeship to earn money and gain experience while you study. Salaries vary, but there is a typical range of £12,000-£18,000 in a variety of industries – with no course fees to pay.
Completing a degree with a year in industry allows you to spend a year working, typically in your third year, earning a full salary before returning to finish your final year.
