Student Loans For Open University: What You Need To Know

If you're considering studying at the Open University, you may be wondering how you'll fund your studies. The good news is that, as a prospective student, you may be eligible for a student loan to cover your tuition fees and living costs. In the UK, both undergraduate and postgraduate students can apply for tuition fee loans for online degrees, as long as the course meets certain criteria and it's your first time studying at university level. You can also apply for a maintenance loan to help with living costs if you're studying a part-time distance learning degree and are unable to attend in person due to health reasons. So, if you're thinking of enrolling at the Open University, be sure to explore your funding options to understand how you can finance your studies.

Eligibility criteria for student loans

The eligibility criteria for student loans vary depending on factors such as your nationality, residency status, course intensity, and whether you are studying full- or part-time. Here is a detailed overview of the eligibility criteria for student loans in the UK:

Nationality and Residency Status:

If you are a UK national, Irish citizen, or have 'settled status' in the UK, you can apply for full support with your tuition fees and living costs. To qualify, you must meet the university, course, and age requirements, and your home must be in England. Additionally, you should have been continuously living in the UK, the Channel Islands, or the Isle of Man for three years before the first day of your first academic year, excluding temporary absences.

If you have a different nationality or live outside the UK, the type of loan you can apply for may vary. An undergraduate student finance checker tool can help determine the specific loan type you can apply for based on your nationality and residency status.

Course Intensity and Type:

The eligibility for student loans also depends on the intensity and type of your course. If you are studying full-time, you may be eligible for student finance if your course is based in the UK and is one of the following:

• A first degree (e.g., BA, BSc, or BEd)
• A Certificate of Higher Education
• A Diploma of Higher Education (DipHE)
• A Higher National Certificate (HNC)
• A Higher National Diploma (HND)
• An Initial Teacher Training course
• An integrated master's degree
• A pre-registration postgraduate healthcare course
• A level 4 or 5 course with Higher Technical Qualification approval

If you are studying part-time, your course must have a 'course intensity' of 25% or more for you to be eligible for student finance. The course intensity measures how much of the course you complete each year compared to an equivalent full-time course.

Previous Education:

Your eligibility for student loans also depends on whether you have previously studied a higher education course. Usually, you will only receive student finance if you are pursuing your first higher education qualification, even if your previous course was self-funded. However, limited funding may still be available in certain circumstances and for specific courses.

Age:

There is no upper age limit for tuition fee loans or grants. However, if you are 60 or older on the first day of the first academic year of your course, your funding options may be limited. For part-time students, you are not eligible for a Maintenance Loan if you are 60 or older when your course starts.

Tuition fee loans

If you are a part-time student, you may be able to get a loan if your course has a 'course intensity' of 25% or more. 'Course intensity' measures how much of your course you complete each year compared to an equivalent full-time course. You can calculate this by comparing your module credits with the number of module credits a full-time student will study. You will be asked how many credits you will study when you apply for the loan.

If your course started on or after 1 August 2018, you can apply for a Tuition Fee Loan and a Maintenance Loan. Your university or college will set your tuition fee, and the loan is paid directly to them. You will have to pay it back. You can get up to £6,935 in an academic year.

The Maintenance Loan is for living costs and the amount you can get depends on where you live while studying, your household income, and your course intensity. This loan is paid directly into your bank account 2 weeks after the start of each term. Again, you will have to pay the loan back.

If you are a distance learning student, you can only apply for a Maintenance Loan if you cannot attend your course in person because of a disability.

If your course started before 1 August 2018, you can apply for a Tuition Fee Loan. Your university or college will set your tuition fee, and the loan is paid directly to them. You will have to pay it back. You can get up to £6,935 in an academic year.

Maintenance loans

If you are a part-time student, you may be able to get a loan if your course has a 'course intensity' of 25% or more. Course intensity is measured by how much of your course you complete each year compared to an equivalent full-time course. You can calculate this by comparing your module credits with the number of module credits a full-time student will study.

If your course started on or after 1 August 2018, you can apply for a Tuition Fee Loan and a Maintenance Loan. The Tuition Fee Loan is paid directly to your university or college and you will need to pay it back. The Maintenance Loan is paid directly into your bank account two weeks after the start of each term and you will also need to pay this back.

The amount of Maintenance Loan you can get depends on where you live while studying, your household income, and your course intensity. You can use the student finance calculator to estimate how much you'll get.

You are not eligible for a Maintenance Loan if you are 60 or over on the first day of the first academic year of your course. If your course started before 1 August 2018, you can only apply for a Tuition Fee Loan.

Bursaries and scholarships

The Open University (OU) offers a range of scholarships and bursaries to help students from all backgrounds access higher education. The OU's Open Futures Fund is designed to break down barriers to education and unlock the potential of individuals across society. The fund includes scholarships and bursaries for disabled veterans, carers, and students from disadvantaged backgrounds.

Disabled Veterans' Scholarships Fund

The Disabled Veterans' Scholarships Fund offers free access to OU education for disabled veterans, along with dedicated careers and disability support. The fund has provided scholarships to 160 disabled veterans, including veteran and current OU scholarship recipient Steven, who shared his story:

> "When I left the military, I felt lost and ripped away from the life and sense of purpose I so loved. Studying through the OU has given me the chance to get a fresh start and to achieve something positive for the rest of my life: a fresh start, a new house and hopefully a new career doing something worthwhile. Thank you to everyone who makes this possible. You are giving others a light at the end of the tunnel and we are so grateful."

Carers Scholarship Fund

The Carers Scholarship Fund offers unpaid carers the opportunity to study for qualifications with the OU for free. The flexibility of OU study means that carers can continue their caring role while achieving a qualification. OU student Dawn, who is her mother's full-time unpaid carer, shared how the scholarship has impacted her life:

> "Caring for a loved one means it's very easy to stop being yourself. Thanks to this chance I feel alive, reborn like I am back in control of my life and I am going to succeed. This scholarship has given me the hope that I will one day be the wonderful English schoolteacher that I dreamt of being. I am so glad I found the courage to apply for the Carers Scholarship Fund. Thank you so much for making this scholarship possible. Your support has given me and my mum something to look forward to again."

Grants and Bursaries

In addition to scholarship programs, the Open Futures Fund offers grants and bursaries to provide flexible support to students who may need extra financial assistance. During the pandemic, philanthropic donations helped support students who were struggling due to job or income loss. Over 3,000 students received Student Assistance grants to support them with food, bills, and study equipment. The fund is also developing schemes to provide more support for students from lower incomes, including bursaries for Black, Asian, and Minority Ethnic students.

The Open University also offers various international scholarships for students from specific countries/regions, including India, the USA, New Zealand, and the UAE. These scholarships are typically partial funding opportunities, covering specific eligible degrees and courses.

Repayment plans

UK Government Loans

If you take out a UK government loan to fund your Open University course, you will need to repay it. The repayment plan you're on will determine when you start repaying and how much you repay. You can use the government's student finance calculator to estimate how much you'll get and how much you'll repay.

Open University Student Budget Accounts (OUSBA)

OUSBA is a wholly-owned subsidiary of The Open University and has been giving OU students financial access to OU modules and qualifications since 1998. When you charge your fees to OUSBA Ltd, the company pays The Open University (OU) on your behalf so that the OU can register you for your module or qualification.

OUSBA offers two repayment options:

• Pay by instalments: OUSBA calculates your OU fee, pays it on your behalf to OU, and then spreads the fee and interest payable over up to a year. This enables you to pay your fees monthly and complete your qualification without any further debt.
• Register now, pay later: OUSBA pays your full module fee directly to OU. You then repay OUSBA interest-free and in full just before your module starts. This option gives you extra time to secure funding.

An OUSBA agreement is a legally binding credit agreement between you and OUSBA Ltd. By signing this agreement, you personally remain liable for the repayments and are bound by its terms and conditions. This applies even if you are trying to secure funds to pay your fees from a third party.

Frequently asked questions