The era of free higher education is gone. From last September all but three universities in England began charging £3,000 a year in tuition fees.

The better news is that the Government will pay the fees upfront in the form of student loans. Students have to pay the money back when they are earning £15,000 a year or more. The average graduate-level starting salary is £18,000.

But the debt can build.

Estimates are that on leaving university in 2009, a graduate will be between £20,000 and £30,000 in debt. The Natwest Student Money Matters survey says a student starting a three-year course will pay, on average, 33,512.

Long-Term Gain

That’s a sizeable wad of cash. But you can pay it back. Over the course of your working life having a degree will earn you, on average, £150,000 (in today’s money) more than not having one. It’s short-term pain for longer term gain.

For anyone researching student loans a good place to start is the website www.direct.gov.uk/EducationAndLearning. Applying for a student loan can be complex process and students should also look at the Government-run Student Loan Company www.slc.co.uk. And contact your local education authority.

Student Grant

And depending on your level of household income, students can also apply for a non-repayable Maintenance Grant or Special Support Grant scholarships from your university or college. These are to help with the cost of living (pencils, travel, books – entry to the student union Abba night).

You do not need to be broke to apply. You can get around 75 per cent of the loan regardless of your household income. Living at home, you can get a maintenance grant of up to £3,415; living away up to £4,405, the figure rising to £6,170 for living in London.

Students with children to support and who are handicapped can apply for additional funding.

And if the cash is tight and your household is on low income, you do not need to pay back the money. This can be worth as much as £2,700 a year.

College Schemes

That’s the Government side. But your college may well run its own schemes. Bursaries are typically worth between £300 and £3,000 a year. You should contact the colleges directly about these.

And then there is the option of seeking sponsorship from a company. A good staring place is www.everythingyouwantedtoknow.com. Here you can learn about which companies offer university placements, which can really kick start a career. It’s well worth a look.

Of course all this is well and good if you have made it to sixth form and A-levels. And to encourage you to remain in education, 16 years old can apply for An Education Maintenance Allowance. This can be worth up to £30 a week. Details of that can also be found on the www.direct.gov.uk website.

Now all you need do now is manage your money. Which can be the hardest part...

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