Student Finance Myths: What You've Heard vs What's True

Student finance can feel difficult to understand.

You might have heard that tuition fees have to be paid upfront, that mature students can’t access support or that loans negatively affect your credit score. These are common misconceptions.

It is worth exploring your student finance and funding options to see what support is available to you.

Here are six of the most common myths about UK student finance and the reality behind each one.

Myth: You have to pay your tuition fees upfront

You do not normally have to pay your tuition fees upfront if you are eligible for a Tuition Fee Loan.

The reality: your Tuition Fee Loan is paid directly to your course provider by Student Finance England. If you are eligible for the full loan, you don’t pay tuition fees upfront, regardless of your household income. You only start repaying once you have left your course and are earning above the repayment threshold.

Myth: Student loans affect your credit score

This myth can put people off applying for finance, but student loans work differently from other forms of borrowing.

The reality: UK student loans do not appear on your credit report and do not affect your credit score. GOV.UK confirms this directly. Lenders may ask about your student loan repayments when assessing affordability for something like a mortgage, but the loan itself does not appear on your credit report or affect your credit score.

Myth: You can't get student finance as a mature student

Student finance is not only for school leavers. If you’re a mature student, you may also be eligible for financial support.

The reality: there is no upper age limit on eligibility for a Tuition Fee Loan. Mature students can apply for student finance at UCEN Manchester in the same way as everyone else. The support available will depend on your age and circumstances. Some students under 25 may be considered independent.

Myth: You can't get funding for part-time study

For some people, part-time study might fit better around their current commitments. If you thought part-time students weren’t eligible for funding, this one will surprise you.

The reality: part-time students can apply for a Tuition Fee Loan. A course intensity of at least 25% is required, but funding also depends on the course and wider eligibility criteria. If a student’s course started on or after 1 August 2018, they may be able to apply for a means-tested Maintenance Loan too. If studying part-time around work or family commitments is what makes studying at UCEN Manchester possible for you, funding options are available to support it.

Myth: You have to repay everything no matter what

The thought of having a huge sum to pay off after graduation can feel overwhelming. However, student loan repayments work differently from most other types of borrowing.

The reality:

• You only repay once your income is above the relevant threshold
• You only repay a percentage of what you earn above the threshold
• Any remaining balance is written off after a set period.

Thresholds and write-off periods vary depending on your student loan plan. Because these thresholds and write-off periods change, GOV.UK's guide to repaying your student loan is the best place to check the current rules for your situation.

Myth: You can't get student finance if you're already working

You might assume having a job rules you out of student finance, especially if you plan to return to study and keep your current job. Working alongside your studies is common, particularly for part-time and mature students.

The reality: being in paid work does not disqualify you from student finance. Your Tuition Fee Loan is not based on your household income. However, your household income can affect how much Maintenance Loan you receive.

The bottom line

Understanding the facts about student finance can help you make an informed decision about funding your studies.

Fees are not paid upfront, your credit score is not affected, and being older, working or studying part-time does not close the door on funding. The full, current rules for your circumstances can be found on GOV.UK's student finance pages. Figures and thresholds change each year.

If funding concerns are the only thing holding you back from pursuing your studies, it is worth checking the facts on what’s available to you. When you are ready, you can apply to UCEN Manchester with a clearer picture of what student finance involves.