What is Student Finance

Student finance, formerly known as 'student support', is the main source of funding provided by central government's Department for Innovation, Universities and Skills (DIUS), and administered by local authorities (LAs) throughout England and Wales, for students attending undergraduate, and postgraduate teaching, courses of higher education.

It mainly consists of two elements, tuition fees support and student loans, the levels of which are usually calculated by means-testing each applicant's unearned income (if any) during the academic year and, if appropriate, their parents' (including step-parent's)/spouse's gross residual income during the previous financial year.

Means testing

The general rule regarding means-testing is as follows.

If, before the first day of the first academic year of the course, applicants for student support are either aged 25, married, orphaned, or can prove - by supplying P60s, letters from employers, etc. - that they have been financially independent of their parents for periods totalling at least three years, they will be considered to have 'independent student' status and their support will not be means-tested on their parental income.

If, however, the applicant is married or co-habiting, the level of support will be subject to a means-test of their spouse's/partner's gross residual income during the previous financial year. Students who reach 25 years of age, or marry, midway through their course will be considered to be 'independent' from the academic year following their 25 birthday or the date of their marriage. Same-sex partners' incomes has been taken into account for new students since 2005/2006.