How Does A Bursary Differ From A Student Loan? (2023)
Are you a student looking for help with funding your education? You might have heard of bursaries, but it can be confusing to know whether they are the same as student loans. A bursary is a non-repayable grant for students. A student finance loan is required if you aren’t eligible for any financial support.
In this article, we will explain what they are and how they differ.
How Does A Bursary Differ From A Student Loan?
A bursary is a non-repayable grant for students. This means that if you’re awarded a bursary, then you don’t have to pay it back. There are different types of bursaries available, including those based on financial need or academic achievement.
A student finance loan would be needed if you aren’t eligible for any financial support.
Bursaries are awarded to help with living costs and studies of high achievers who require financial help. They can be used at any university or college in the UK, including the Open University.
Bursaries are awarded on a needs basis and each application is assessed individually. You can get a bursary if you:
Have been eligible for free school meals or were unable to take advantage of learning opportunities because of your background (for example, if there was no adult available to support you)
Are from an underrepresented group in higher education such as someone from a minority ethnic background, disabled or LGBT+
Means-testing is a way of assessing whether you qualify for a bursary or not. Basically, it means that you need to provide details about your household income, so they can assess whether you qualify or not.
If your household income is above a certain threshold, you will not be awarded a bursary.
Your household income is the first factor that determines how much you will receive. The amount of money you receive, if awarded a bursary, depends on this. If your family earns more than £25,000 in a year (that’s around $32,410), then you won’t be eligible for any bursaries and grants at all.
If your household income is between £25,000 and £42,620 (around $32,410 – $54,050) then the amount of money that you get will be based on an assessment made by the school. This will take into account both your parents’ employment status as well as their previous qualifications and career history to determine whether they might be able to afford higher education expenses even without receiving financial assistance from outside sources such as student loans or grants/bursaries from universities themselves
When You Apply For Student Finance And Then Receive It, This Is Called A Loan.
When you apply for student finance and then receive it, this is called a loan. You have to pay it back after your course is over and your loan will be taken out of your wages or salary when you start work. But there are other ways to get money to help with your education costs:
Bursary: A bursary is a grant that doesn’t have to be paid back. It’s usually based on financial need and may also be awarded on the basis of merit or taking part in specific activities (for example sports).
Loan: A loan is an amount of money that you borrow but must pay back at some point in the future (usually monthly). Some types of loans don’t need any interest or fees charged up front but others do – so check what’s available before choosing one type over another; otherwise, you could end up paying more than necessary!
Bursaries are essentially one-off payments to learners. The intention is that this one-off payment will assist the learner in their studies without them having to incur massive debts in the process.
The main difference between a bursary and a student loan is that bursaries are non-repayable, whereas student loans are repayable. They are means-tested and awarded on the basis of financial need not academic merit, meaning those with greater needs have a better chance of securing one than someone who doesn’t have much money but performs well academically.
Loans are repayable and students start repaying those loans once they complete their studies and make more than £21,000 per year. Loans are repaid through the tax system, meaning that you pay back 9% of any income above £21,000 at the end of each tax year. If your income is low enough to earn less than this amount, then you won’t have to pay anything back until after university.
When you apply for a bursary, you’ll need to provide your financial information. The amount of money you receive will depend on your personal circumstances.
- Some bursaries are awarded by the government and some by private organizations. Some bursaries require that you have special skills or abilities, while others are available to anyone who qualifies financially. There are also different types of bursaries that pay out different amounts of money, depending on how much they can afford to offer their recipients.
It’s good to know what different options for funding are out there before making a decision about which path is right for your situation!
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Hopefully, this article has helped you understand the difference between a student loan and a bursary. If you’re unsure about what funding options are available, we recommend speaking to your school or college financial advisor who can provide further help with this process.