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A number of factors come into play when estimating the cost of a student’s higher education.
From 06/07 onwards, Universities and colleges were able to charge different fees for different courses This fee may be deferred by taking out a Tuition Fee Loan which will be paid direct to the university. Students attending a course elsewhere in the UK will have to pay the fee set by that university. The overall cost will be dependent upon the student’s chosen course, institution and household income.
For example, you or the student may be expected to make a contribution towards their tuition fees. Full time students may get all or part of their tuition fees paid, depending upon their income and that of the other members of their household.
Higher Education Institutions in Wales will charge a fee of up to £3,290 from academic year 2010/11. The fee may be deferred by taking out a fee loan which will be paid direct to the university.
Student loans are also available to help with living costs.
There are two options for establishing the interest rate for income contingent loans. The first is to use Retail Prices Index (RPI), or the bank base rate, whichever is lower. There is also a low interest cap linked to that option, which means that the loan interest rate can be cut in-year, when the base rate plus 1% across a group of banks, is lower than RPI, as happened in December 2008 for the first time. The second option is for Welsh Ministers not to apply an interest rate.
Whilst to date the March Retail Price Index (RPI) has set the student loan interest rate, the Minister for Children, Education, Lifelong Learning and Skills decided not to apply an interest rate for the academic year 2009/10 - effectively making the rate 0%.
If you repay through PAYE or Self-Assessment, interest accrual will be suspended from the start of the tax year until the end-of-year repayment details are received from HMRC. Interest will then be calculated and applied to your account retrospectively.
Entitlement to grants and loans increases each year in line with inflation, and your financial contribution is assessed by your Local Authority.
Where to apply
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