Student finance advice

A student finance expert has told anyone looking to apply for a place at De Montfort University: “Don’t be put off by the scare stories about fees”. 

Emma Manning, head of student administrative support at the university (DMU), says the benefits of an education at De Montfort University far outweighs any costs that might be incurred following the introduction of £9,000 a year fees for undergraduates in 2012.

She says a quick conversation with her department by anyone wanting to apply to DMU will blow away the myths about the cost of coming to university.

Emma said: “Do not be put off by all the fear-mongering by the press about massive debt. Yes, there is a lot of money to be borrowed, but what you need to look at is the repayment rates. The good news is you don’t pay a penny until you have graduated and even then you have to earn more than £21,000. Your monthly payments then depend on the amount you earn.

“On top of that there are bursaries and scholarships on offer of £1,000 a year each. And we pay them in cash because we believe the students can best decide where that money should be spent to help them with their education.” 

Low repayment rates

The average starting salary for a De Montfort University graduate is £24,000 a year. Repayments are worked out as 9% of everything earned over £21,000.

Repayments for someone with an annual income of £24,000 work out to be £23 a month – or just over a fiver a week. Monthly satellite TV subscriptions can be more than double that amount! 

Emma said: “My advice is for every student to have a look at their budget and start to ask us questions. What can we do to help you and your finances? What are you eligible for in terms of loans and bursaries and scholarships?

“Do not just go along with the herd worrying about your finances. Speak to us. We will do everything we can to help you with your queries and tell you what financial help there is available from DMU or the Government.”

Emma added: “You have to remember that a university education increases your employability. It is the perfect stepping stone from a life at home to a life of work. It prepares you not just academically but in so many other ways too. Our courses are all geared towards preparing you for a world of work.” 

Emma’s team can be emailed at sas@dmu.ac.uk|  Please put the subject of your query, for example “£9,000 fees” or “bursaries” in the subject box.

Alternatively email the money and welfare department at DMU’s Student Services department on moneyandwelfare@dmu.ac.uk|

Top tips

The following top ten tips have been issued by Martin Lewis of Money Saving Expert fame.

1. The changes ONLY hit new September 2012 undergraduates. The new maximum £9,000-a-year tuition fees for full-time students are only for new 2012 starters. Existing students and 2011 starters stay on the current system, with fees at a maximum of up to £3,465 a year.
2. You don't need the cash to go to university. Fees are automatically paid by a Student Loans Company loan. There are loans for living costs too.
3. You only repay if earning over £21,000. Full time students' repayments start the April after graduation at a rate of 9 per cent of everything over £21,000.
4. Loans are wiped after 30 years. If the loan hasn't been repaid within 30 years, the debt is cancelled and you owe nothing. Therefore, those who never earn over the threshold, will never repay.
5. There are no debt collectors. Repayments are collected via the payroll from employers, like tax. This means there will be no debt collectors chasing repayments.
6. Repayments are £540/year LOWER than now. Current graduates repay 9 per cent of earnings above £15,000. The new threshold's £21,000 (which will rise with average earnings), so while repaying, future graduates will have more disposable income.
7. You will owe money LONGER and may pay MORE. Compared to current graduates, under the new scheme, as you repay less each year, the original debt's bigger. Plus, you pay higher interest, so it'll take MUCH longer to repay the loan than now, and depending on earnings, may cost more than now.
8. Many will NEVER pay it all back. Many starting even on £25,000 salaries won't repay all owed within 30 years, meaning they'll repay for much of their working life, and won't need to repay everything owed.
9. Monthly repayments are the same, whether fees are £6,000 or £9,000. The course fee size doesn't impact monthly payments as they're set at 9 per cent of earnings above £21,000. 
10. Many won't pay any more in total on £6,000 courses than £9,000. As many students, even those starting on salaries as high as £30,000, may not repay their combined fees and living loan at the £6,000 fee level before it clears after 30 years, there is no increased cost to them of taking a £9,000 fee course.