Free Parent's Guide Student Finance 2012 - how it works

This year's uni starters are guinea pigs for the biggest changes to student loans and fees for years. With headlines screaming about graduates lumbered with £50,000 debt, many 6th formers would be forgiven for being scared. Yet this new free "What every parent needs to know about student finance in 2012" is here to help.

The guide is produced by the Independent Student Finance Taskforce (which is headed by Martin Lewis) and is crucial reading for anyone considering going to uni in 2012.

If you want to print, use the black and white version for best results. Also see the students version and free teachers' uni fees booklet.

For more info on the changes,
see the full guide:
Student loans 2012
Also see: Student Checklist | Student Accounts | Repay my student loan?

What's in the booklet

Introduction

You’ve done your job ensuring your children attend school and do their homework. Now they’re planning on going to university. Yet they’ll be the first year of the big changes to the student funding system and with the headlines blasting “£50,000 debts” no parent could be blamed for being worried.

1. The Basic Facts

It's a scary sum, but it’s often not as frightening as it sounds as the repayments are solely based on earnings, not on the amount borrowed. It’s important that parents know the key facts.

2. Loans, grants and bursaries

There is a range of financial support out there for those wanting to go into higher education. This falls into two main categories – government support and direct money from universities and colleges. The amounts available often depend on household income – which usually means you, the parents’ income.

3. How much will they need to repay?

Student loans must be repaid when your children have left the course and started work, and are earning over £21,000 - whereas grants and bursaries do not need to be repaid, regardless of circumstances. Students starting at English universities in 2012 could graduate with loans of anything up to £50,000 if they take both tuition fee loans and maintenance loans.

4. How much will it actually cost?

This is the crucial question and one of the many fears that are putting people off going to university – the ‘how will they afford to live with this debt’ question. The actual answer is different for everyone but in general they will repay £540 a year LESS than current graduates.

5. Q&As

Key questions answered include: 'Will it be possible for my child to repay their student loan early?', 'What happens to repayments if your child has other income?' and 'Do they still have to repay if they move abroad?'

Further reading

A list of key contacts to help with all aspects of student finance.