How tuition fees are calculated and paid to univer - Higher Education - How finance works - Information for staff - Finance

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How tuition fees are calculated and paid to universities

Most universities expect a payment of tuition fees from students or their sponsors. The amount of the tuition fee is dependent on:

the level of the course (undergraduate or postgraduate)
the place where the student normally lives (UK - home, European Union member state or other overseas country)
the subject being studied
the way in which the student attends the university (part-time or full-time)

Universities are restricted in what they can charge as a tuition fee for some types of student. For other types of student the universities have freedom to set their fees at whatever level they deem to be appropriate.

More detail is available about the typical arrangements for setting the level of fees for:

Home and EU undergraduate students

For full-time home and EU undergraduate students universities are permitted to charge whatever fee they deem to be appropriate up to a maximum amount approved by the Government. For the academic year commencing in September 2009 the maximum fee is £3225. Within this maximum universities are able to vary the fees charged for different courses if they wish to do so. Fees for home and EU full-time undergraduates are known as ‘regulated’ tuition fees.

In order to be able to charge the maximum permissible fee, the institution has to have an agreement in place with the Office for Fair Access (OFFA). This sets out how the institution will safeguard fair access to higher education, particularly from low income groups. It also requires institutions to provide bursaries and other financial support to students from low income groups.

Full-time undergraduate students are able to defer payment of all or part of their tuition fees by taking out a tuition fee loan (the level of loan available depends on family income). The Student Loans Company (SLC) provides these. The university receives the equivalent of the fee from the SLC whilst the student is studying. The student starts to make re-payments to the SLC once they have graduated and their annual income exceeds a specific threshold.

Part-time tuition fees for home and EU undergraduate students can be set at whatever level the institution deems to be appropriate. These are known as ‘un-regulated’ tuition fees. Part-time students are not eligible to take out a fee loan from the SLC.

Home and EU postgraduate students

Universities are generally able to set their own level of tuition fees for postgraduate students (Home, EU and overseas, full-time or part-time).

This means that the fee charged can vary by subject and even by course. Factors which affect the level of the fee set are the demand for courses, the level of funding available to potential students, the fees set by competitor institutions and the cost of running the course.

Because these students usually attract Higher Education Funding Council for England (HEFCE) funding, the fee level set for home and EU postgraduate students is often below that for overseas students.

Overseas students

Tuition fees for overseas students (undergraduate or postgraduate) can be set by the institution at whatever level it deems appropriate.

Because overseas students do not attract any funding from the Higher Education Funding Council for England (HEFCE) most institutions charge a higher level of fees than for home and EU students.

Island students

Students from the British Crown Dependencies of Jersey, Guernsey and the Isle of Man pay tuition fees under an agreement with the island authorities and Universities UK (the umbrella body for Vice Chancellors).

This agreement sets the level of fees payable which, for undergraduate students, is significantly higher than the Home or EU student fee. The tuition fee varies according to the subject being studied.