This is a simple guide outlining the different sources of funding for undergraduates. It's worth finding out about all of them. You may not be eligible for every scheme, but if you don't ask, you don't get.

What's the cost?

In 2007/8, university fees will rise to a maximum of £3,070 per year. Full-time undergraduate students don't have to pay these fees while they're studying. As detailed below, a loan scheme operates for all UK based students - who have been registered residents for a minimum of three years - while some may find further grants and dispensations are available.

Student loans

This is the name for a financial support package from the government, offering loans to help all students with their living fees. These are means-tested (which means an assessment is made based on your finances) and eventually have to be repaid - plus interest linked to the rate of inflation. The key is that you don't have to begin repayments until you're in work and earning an annual salary of £15,000 and above.

If you're due to start paying back your student loan on or after 2012 you will now have more choice over how you repay them. Graduates will have the option of taking 'repayment holidays' for up to five years. If you're a 2008/09 entrant who leaves higher education and are due to repay your loan ahead of 2012, you won't be eligible for the scheme. For 2008/09 entrants to be eligible you need to be on a course lasting three or more years and be leaving higher education in 2011.

Loans are organised by the Student Loans Company, but you start by contacting your Award Authority, which is governed by a different body depending on where you live:

• England - apply through your Local Education Authority, or by visiting www.studentsupportdirect.co.uk/
• Wales - apply through your Local Education Authority, or by visiting www.studentfinancewales.co.uk
• Scotland - apply through the Student Awards Agency for Scotland, or by visiting www.student-support-saas.gov.uk
• Northern Ireland - apply through your Education and Library Board, or by visiting http://www.delni.gov.uk/

Alternatively, you can apply online at: www.studentfinancedirect.co.uk

For a guide to the maximum loan amount available, depending on your financial cirucmstances, visit HERO.

Parental contribution

A large proportion of students have to rely on their parents to pay for university fees and some of their subsistence money. Parents are given a suggested amount for their contribution, but unfortunately it cannot be legally enforced.

Higher education grant

Students coming from a family with an income under £16,340 are entitled to apply for a grant of up to £1,000. You do not have to pay this back. Smaller grants are also available, if your family income is under £22,326.

For other sources of cash to get you through your student days, check our extra funding options.

Updated: 03/07/2008