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

Summer Budget; the Chancellor announced changes to student finance.

08 July 2015

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.