EU Funding FAQs
I am worried that I am going to have a lot of debt if I go to university.
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Actually it's more like a tax than a loan, it's taken directly from your earnings*. No one pays until they earn over £21,000.
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Although the overall loan will be higher, most graduates will be paying back less every month. Graduates earning £21,000 and over will repay £540 a year less than they do currently.
*This is the repayment process in the UK. EU students leaving the UK after completion of their studies will need to contact the Student Loan Company to arrange their repayments.
How are my fees paid while I am studying?
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We have set our fees at £7,800 per year for full-time UK and EU undergraduate students entering the University in 2012. These fees will be paid by a government loan, providing that you make a successful application to the Student Loan Company.
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You will not repay that loan until you have finished your degree AND earn more than £21,000 a year.
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Fees for all levels of sub-degree courses (for example, Foundation Year, HND) will be £7,420.
When do I start paying back my loan?
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You do not have to start repaying your loan until the April after you finish your degree, and only when you are earning over the £21,000 threshold.
If I earn more than £21,000, how much will I pay back?
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You will pay 9% of the amount you earn over £21,000.
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So, for example, a graduate earning £22,000 will pay 9% of £1,000 (the amount they earn over £21,000) - that comes to £90 a year or about £1.70 per week.
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A graduate earning £32,000 will pay 9% of £11,000 and that comes to £990 a year or about £19 per week.
What if I never earn £21,000 or become unemployed?
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The government says that you will not need to pay back anything at all if you never earn more than £21,000*. If you become unemployed or your income drops below £21,000 for any reason (for example, career break, part-time working), your graduate repayments stop until you again earn more than £21,000.
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In any case, your repayments will continue for a maximum of 30 years after graduation, or until you pay off the loan, whichever comes sooner. After 30 years any remaining loan not repaid is written off by the government.
Where can I find more information?