Finance - English

Can you afford to come?

Studying and living in the UK can be expensive, and you may have to gather all the money you will need before you begin. In order for you to be accepted onto a course, you will have to prove that you can support yourself and your dependents while you are studying in the UK. The course administrator will want to be satisfied that you will not need to work or depend on public funds during your course. They will usually ask for a letter from your bank or from the bank of the person who is paying for you. This is why you may have to find all the money you will need during your studies before you arrive.

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Do not turn up empty-handed

You should prepare your finances before you come. Try to pay your fees by bank transfer before you arrive, so that you do not have to carry lots of cash. You could also bring a cheque or bankers’ draft, payable to the institution.

You will need to pay for things like accommodation, food and transport in the first few weeks of your stay before you open your UK bank account. Visa and American Express cards are accepted in most shops in Britain. Ask your home country bank whether you will be able to withdraw money and make payments using your existing account.

You should have some cash too; travellers’ cheques are best because they are protected against theft. Remember if you bring more than 10,000 Euros (or equivalent) into the country from outside of the EU, you have to declare it at customs.

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Work out your costs

Most foreigners say that it is expensive to live in the UK. However, your costs will depend on where you live. Big cities will be more expensive than smaller cities and rural areas. If you decide to study in London, your rent could be double that of a person studying in Exeter or Warwick.
You should plan how much money you will need per week. University College London estimated in 2008 that £220 per week would be enough to live in a London hall of residence during its 37-week year. This included £95-£100 for accommodation, £40 for housekeeping (food, toiletries etc), £50 for entertainment, £10 for travel, £7 for books/equipment, £7 for insurance/TV licence and £10 for clothes. Costs will differ between areas, so contact your university for more accuruate estimates.
As for tuition fees, international students usually have to pay much more than home students. At the University of Leeds in the year 2007-8, annual international fees for Arts undergraduate students averaged at £8,900, while Clinical students could expect to pay as much as £21,900. However, fees vary depending on level, institution and type of course. Some fees can be as low as £4,000 per year.
However, you should remember that not all foreign students are subject to international rates. You may only have to pay the “home” fee (the lower one) if you:
• have been resident in the UK for three years before the starting date of your course and your purpose for being in the UK was not to receive full-time education during those three years. You must be “settled” in the UK, meaning there are no restrictions placed on the length of your stay.
• are “settled” in the UK and have excercised a right of residence in the EEA or Switzerland.
• are a European Union national or the family member of one.
• are an EU national living in the UK.
• are an EU national or the family member of one with the right of permanent residence in the UK.
• are an EEA or Swiss worker, or the family member of one.
• are the child of a Swiss national
• are the child of a Turkish worker
• are a refugee, or the spouse, civil partner or child of one.
• have not been granted refugee status, but have been allowed to remain in the UK, or you are the spouse, civil partner or child of one such person.
During your studies, it is possible to become a home fee payer if you become one of the categories above. The rules for all of this are complicated and there are many exceptions, so to find out exact details go to the UK Council for International Student Affairs website. This website also has further information about the above categories. Alternatively, your university financial services or fees office will probably be able to help you.

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Raise the funds

If you do not have enough money to cover the course, do not worry. Your country may have grants or special career development loans which enable you to study internationally. You can also apply for a wide range of scholarships.

The British Council is the most famous scholarship provider for foreign students. Contact your local British Council office for information, as the UK office does not keep application forms. You also need to start researching it 18 months before you want to start studying, because the application process begins more than one academic year before the start of the course. Go to British Council for details.

If you are American, you probably already know about the Fulbright scholarships which can fund you to study all over the globe, including the UK. Meanwhile, those in commonwealth countries may be able to participate in the commonwealth scholarship programme run by the UK government.

There are plenty of others, but they are difficult to find. You will need to spend a lot of time searching before you find a scholarship you may be eligible for. Scholarship search sites can be helpful; try Education UK and
Hot Courses. You should also look at the financial aid pages of the university you are applying to and ask the course administrator if there are any scholarships specific to the department.

Remember that international students usually cannot claim welfare benefits, but some students may be able to get a student loan in the UK. Go to UKCOSA to find out if you are eligible.

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Get a bank account

If you are going to be in the UK for more than a few months, a bank account is quite essential. You can use it to pay bills, make purchases, write cheques and withdraw cash. Above all, it keeps your money safe. You should apply for an account as soon as you arrive because it can take three or more weeks to set up.

When you go to open your account, you will need to show the bank your passport or national photo ID card and your acceptance letter from your college or university, or a letter of introduction from your college or university. You may also need bank statements from your home country account. There may be other requirements, so try to contact the bank before you arrive in Britain. For more information, you can also contact the British Bankers Association.

There are many different banks in Britain. The main ones are HSBC, Barclays Bank, Lloyds TSB, Halifax, NatWest and the Royal Bank of Scotland. Barclays Bank and HSBC both do special international student packages. Visit their websites for more information.

You may be able to prevent tax being deducted from your interest, so when you open your account, ask your bank for a form R105. Remember to let your bank know if you leave the country for long trip – they may think you have left forever and close your account. Also let the bank know in writing if you change your address.

If a bank refuses to let you open an account, you can contact the National Union of Students (NUS), which may be able to help you challenge the decision.

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Council Tax

Most people have to pay tax, which goes towards local services like rubbish collection, the police and the fire brigade. University and other accommodation occupied only by students are usually exempt. Your institution may have to provide a council tax certificate to exempt you from any bills.

However, you may not be exempt if your course lasts less than one academic year or involves less than 21 hours of study a week. You will probably also have to pay council tax if you live with non-students.

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