Changes to student finance for new students entering higher education in September 2016

In Wednesday’s Summer Budget the Chancellor announced changes to student finance.
This will only apply to students starting a Higher Education course from September 2016.

Key facts

• from 2016/17 all means tested student maintenance grants will be replaced with loans (this will not impact students starting courses in 2015/16 or already at university)
• maintenance support available in loans will increase to the highest level ever for students from low-income households – by £766 to £8,200 for those studying away from home outside London and to £10,702 for those in London
• tuition fee loans for 2016/17 remain the same
• targeted grants such as Disabled Students' Allowance, Childcare Grant, Parents Learning Allowance and Adult Dependants' Grant will still be available for students who are carers, disabled or have dependants
• university will remain free at the point of entry – no one has to pay up front, and graduates only have to repay their loans when they are earning over £21,000
• the government will consult on freezing the student loan repayment threshold at the current level of £21,000, repayments will remain tied to earnings
• from 2017/18 institutions offering high quality teaching will be allowed to increase tuition fees in line with inflation – the government will consult on how this will be done.