Figuring out how much university will cost can be tricky.

If you’re thinking of studying at university, it can be difficult to work out how much you’ll need to pay for tuition fees. 

Here’s everything you need to know about the true cost of university. 

The costs of going to university

Going to university can be expensive. With tuition fees at record levels, you'll likely end up having to pay back several thousands of pounds.

Although tuition fees work more like a graduate tax, and you won’t need to repay them until you earn more than a set amount of money every year, it can still be a shock to realise how much you owe.  

And this is all before you factor in the day-to-day costs of university.

You’ll need to find a way to pay for daily expenses, including food, essentials, course materials and rent. Unlike tuition fees, you’ll need to pay your maintenance costs upfront.  

When planning for the costs of going to university, it’s worth considering what costs you’ll incur daily and which ones you won’t need to pay back for many years, as this will help you plan your finances efficiently.  

What are tuition fee costs?

Tuition fees are the headline costs of going to university. Universities can charge up to a maximum of £9,250 per year for your course.

So, for a three-year course, you’ll need to apply for a student loan that covers up to £27,750 in tuition fees for your course.

Depending on where you live, you can apply for a student loan from Student Finance England, Student Finance Wales, Student Awards Agency Scotland (SAAS), or Student Finance NI. 

However, an interest rate is also applied to your loan.

The amount of interest charged is linked to inflation as measured by the Retail Price Index (RPI), meaning if this rises, so will the amount you need to pay back.

As RPI is high, the UK government recently decided to temporarily cap the interest rate at 7.7% for all students and graduates.

The amount you need to repay in tuition fee loans will be the total of your initial course fee and the interest rate applied.

For students attending university for the first time after 2012, many students will have a debt of tens of thousands of pounds.  

For international students looking to study an undergraduate course in the UK, fees are higher and can be anywhere from £10,000 and £26,000, according to The Times Higher Education. 

How are tuition fees repaid?

So, while your student loan will be a sizable amount, knowing how you will repay it is important.

A student loan differs from any other loan you might take out. It works much more like a tax than a loan you need to repay by a fixed date.  

You’ll only start repaying your undergraduate loan once you earn more than a set amount. 

Depending on which plan you're on (depending on when and where you study), this can vary between £24,990 and £31,395 a year. 

This means that you’ll only start paying back your student loan if you go on to earn enough money after university.

It will take years to fully repay your loan, and some people might not even repay the loan in full.

In other words, paying back your student loan doesn’t need to be a financial priority until long after you’ve graduated.  

What are the living and accommodation costs?

Most of your immediate costs as a student will be maintenance costs, including rent, food, transport and learning resources.

These costs can be substantial, and it can be difficult to predict how much money you will actually need to pay on a weekly and monthly basis.

For this reason, most students opt to take out a maintenance loan from their student finance body.

This is added to your student debt and is repaid in the same way as your tuition fees. There is no typical figure for how much students spend on maintenance costs.

The amount varies a lot depending on where you’re studying.

For example, studying in London costs much more than elsewhere, and your spending depends on how you manage your money.

By far, the biggest cost students have to pay is rent, with the average rent for student accommodation coming to around £550 per month, according to Save the Student's most recent survey. 

There are also some hidden costs to keep in mind.

Depending on what course you’re studying, you might need to pay for specialist equipment or books. Also, if you’re looking to join societies to meet other students, there might also be small fees to pay. 

Is university worth it?

When faced with the costs, a lot of students ask themselves if university is worth the expense.

There’s no easy answer, as university is an individual experience for everyone. So, while some students on certain courses might feel that university is worth the expense, others might not.  

The upfront maintenance costs can be a lot, but as a student with a degree, there’s a decent chance you will be in a high-earning profession.

Studies by the Office for National Statistics (ONS) show working-age graduates earn £11,500 more per year than non-graduates, with this ‘graduate premium’ only increasing as you pursue further education.

So, while it's an upfront expense, getting a degree can drastically improve your future salary.

For this reason, you can think of going to university as an investment in your future.  

Tips for saving money as a student

While university can be expensive, there are some key tips for students to help manage their money effectively.  

• Budget: Many students don’t budget properly, meaning they can be left a little short on cash when they most need it.
• Get a part-time job: Sometimes, working a few hours on the side of your studies can help make up some of your shortfalls.
• Speak to your parents: It’s not unusual for parents to help students while studying. If your parents can, you could speak to them about the options for supporting you at university.
• Speak to a financial adviser: A financial adviser can help you plan for your financial future. Speak to an adviser to see how you can manage your finances at university.

The true cost of university can be expensive. But knowing what money you need to pay back, when you’ll need to do it and how to prioritise your money can make a big difference.

To explore your options further and see how you can manage your finances at university, speak to a financial adviser.

If you found this article helpful, you might also find our article on student hardship funding and saving for school fees informative, too.

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