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How to pay for university
How to pay for college—three options to help you on your way
Scholarships—recognizing and rewarding academic achievement
- A scholarship may cover part or all of your tuition or expenses, and—unlike a student loan—it doesn’t have to be repaid.
- Scholarship dispersals differ depending on the program. They may be paid out as a lump sum, or at regular intervals (e.g. per semester or annually).
- Your university or college website will likely have a list of available scholarships. Many private companies also offer them, whether to encourage diversity in the workforce or support young talent.
- Scholarship applications vary and can include anything from performing a piece of music to writing an essay or presenting a design portfolio—but it could also be as simple as attending an interview or filling in a form.
- Looking for the top scholarships in Europe? A full list is available here.
Grants—meeting students’ financial needs
- You don’t have to pay a grant back. Like a scholarship, it may be paid through single or recurring transfers.
- A grant can have various alternative names—such as fellowship, studentship, sponsorship, and student allowance.
- Along with family income, a grant may be based on your nationality, personal circumstances, residential status, and chosen course of study.
- A list of grants available in Europe by country can be accessed here.
Student loans—borrow now, pay back later
- A student loan is money that you borrow from the government to pay for your studies under the agreement that you will pay it back once you’ve graduated.
- The amount you’re allowed to borrow may depend on a variety of factors.
- The UK has a two-tier loan system consisting of:
- Maintenance loans: money borrowed to cover your living costs (rent, food, bills, etc.)
- Tuition fee loans: money borrowed to cover your tuition fees
- The loan you take out may be subject to an interest rate that could add to the amount you’ll have to repay after you finish your studies. For 2021, these figures are:
- UK: 2.6% for salaries up to £27,295 and 5.6% for salaries over £49,130
- France: Between 0% and 1%—not contingent on earnings
- Germany: 0% interest-free
- In general, loan repayments are automatically deducted from your wages after you start working. The exception is if you are a freelancer or sole trader, in which case you have to set up a direct debit for your monthly repayments.
- In the UK and France, you can apply for a student loan before you’re accepted to a university. In Germany, you must wait to apply for your BAföG until you’ve been accepted to a program. If you don’t manage to apply in time, you can still submit your loan application during your first year of study.
- You decide what you do with the loan. Tuition, rent, food, books, subscriptions, leisure activities—you’re the one paying it back later on, so it’s up to you how you spend it. In fact, it may make sense to save some if there’s money left over to get a head start on your repayments.
- In the UK, any remaining loan amount not repaid after 30 years is forgiven.
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