Unless you have a generous trust fund or get lucky on the lottery, tuition fees are now a central part of the university experience. Although degrees still usually prove to be a wise investment over time, the extra expense is the last thing cash-strapped students need in the short term. If you’re heading up to uni this autumn, at least Moneymagpie is here to explain everything you’ll need to know about tuition fees.

• What are tuition fees?
• What you’ll pay
• When you’ll have to pay
• Should fees affect what I choose to study?
• Useful links

What are tuition fees?

Obviously it costs money to run university courses. It can cost hundreds of thousands of pounds in the case of some science courses. The government used to pay all these costs for UK students. It still pays the vast majority of them. However, students in most of the UK are now expected to pay a contribution towards the cost of their course. This is called a tuition fee.

What you’ll pay

The first thing to say is that fees shouldn’t put you off going to university.

The second thing is that you don’t actually have to pay a penny of the fees until after you graduate and are earning over £15,000.

The universities themselves decide how much they want to charge, which for 2011/12 can be anything up to £3,375. Don’t worry though – as a UK student you won’t be paying the full cost of the course. In fact, there are limits set by regional authorities around the UK, so the part of the country that you study in and the specific university you choose will both affect how much you will pay in tuition fees.

Here’s the damage in different parts of the UK for full-time undergraduate courses:

Over the last few years the maximum that universities are allowed to charge each student has only been allowed to increase by the rate of inflation – so although the amount charged has gone up slightly, the strain on the wallet has been the same in real terms.

^†Wales: If you started your studies during, or prior to, the 2009/2010 academic year (continuing) and normally live in Wales i.e. assessed for fee support by a Welsh Local Authority, you should be entitled to a tuition fee grant of £2,030.00.  This tuition fee grant is available regardless of family income, and is paid directly to the place of study.

*Scotland: Scottish students studying in Scotland don’t pay tuition fees. However, non-Scottish students studying in Scotland will have to pay £1,820 per annum for a first degree or equivilant. Medical courses are £2,895. You will be able to apply for a loan to cover these costs.

The increase in the maximum tuition fee rate to £9,000 in 2012/2013 only applies if you are entering university for the first time in September 2012 or later. If you are a returning student, your maximum tuition fee will be £3,465.

When you’ll have to pay

Firstly, if you are lucky enough to have the money and want to pay the fees straight away, year by year, then you should go ahead. It’ll save you money in the long run as you won’t need a tuition fee loan, meaning there’ll be no interest to pay.

However, if like most people you can’t afford to simply shell out and be done with it each year then you’ll want to take out a tuition-fee loan from the government.

The word loan is actually a bit confusing. You will never actually be given a penny of the money that you take out, but there is no reason to feel short-changed! Instead, the government will give it straight to the university on your behalf.

You will then have to pay the money back to the Government once you’ve graduated and your salary goes over £15,000. Even then you’ll be paying back small amounts each month automatically through wage deductions, so repayments are straightforward and manageable.

Should fees affect what you decide to study?

Tuition fees might have a bearing on what and where you study – but it shouldn’t be the deciding factor. Remember that you’re going to be living in your university town and studying your subject for at least three years, so you should be happy with what you choose.

Look at the cost of different courses and different universities. Most universities need to rake in as much cash as possible and charge the maximum possible fee. But like any marketplace, things are changing all the time. Some institutions may undercut their rivals or offer unpopular courses more cheaply.

That said, it’s not worth getting too caught up in tuition fee savings. For most people, going to university is going to mean getting into a lot of debt. It’s better to take on a slightly bigger debt in order to study what and where you want, rather than go into the red for what is, to you at least, a second-rate option.

Students from Wales and Scotland might still want to be aware that studying in another part of the UK will cost them a lot more than studying at home, as they won’t get as much help from their respective Governments.

Useful Links

• DirectGov- Student Finance
• Student Awards Agency for Scotland
• StudentFinanceWales
• Student Finance Northern Ireland