Black Learners, Bright Futures

Achieving a university education is a significant milestone toward social mobility, career development, and personal growth. However, financial barriers can make this journey challenging, particularly for students from disadvantaged backgrounds. In the UK, Black students and those from economically underprivileged communities often face unique financial hurdles, which can impact their access to and success in higher education. The good news is that with careful planning and practical strategies, university can be more accessible and affordable. Here’s a guide on saving and financially planning for higher education.

1. Understanding the Cost of Higher Education in the UK

Before exploring saving strategies, it’s essential to understand the costs involved in higher education. In the UK, tuition fees for most undergraduate programmes can be up to £9,250 per year. This is in addition to living expenses, which vary depending on location. Students in cities like London face higher living costs, averaging around £1,265 per month, including accommodation, food, and transport. For many families, especially those from disadvantaged backgrounds, these figures can feel daunting.

2. Financial Support Options: Scholarships, Grants, and Bursaries

Scholarships and Grants for Black Students and Disadvantaged Youth:

Scholarships, grants, and bursaries can significantly ease financial strain, as they don’t need to be repaid. The UK has various options aimed at disadvantaged students and Black students. For instance:

The Cowrie Scholarship Foundation:

Offers scholarships to Black British students from low-income families. You can read here about different financial options available in the UK for students from low-income households.

UNITE Foundation Scholarship:

Provides free accommodation to care leavers and estranged students, who often come from disadvantaged backgrounds.

Access to Higher Education Bursaries:

Many universities provide bursaries specifically for low-income students and those from underrepresented communities. These bursaries help to bridge financial gaps, making higher education more accessible. Researching these options on university websites or speaking with school advisers can help students identify the best fit.

3. Student Loans and Financial Literacy

Understanding Student Loans:

Student loans are available to cover tuition fees and provide a maintenance loan for living costs. In the UK, student loan repayment is based on income, not on the total debt, which is particularly helpful for those from lower-income backgrounds. Graduates only begin repaying once their income reaches a certain threshold, making repayments proportionate to earnings.

The Importance of Financial Literacy:

Financial literacy is essential for managing student loans and budgeting effectively. Many students and parents from disadvantaged backgrounds may lack familiarity with financial planning, so it’s crucial to understand basic budgeting, interest rates, and repayment terms. Resources like the UK’s Money Advice Service offer free guidance on managing student debt and personal finances.

4. Setting Up a Dedicated Savings Plan Early

Start Saving as Soon as Possible:

Establishing a savings plan early, even if contributions are modest, can make a meaningful difference over time. Here are some practical ways to save for higher education:

Open a Child Trust Fund (CTF) or Junior ISA:

Parents can set up these tax-free savings accounts to grow funds for their child’s future.

Consider a Help to Save Account:

For those receiving Universal Credit or Working Tax Credit¹, the Help to Save scheme allows individuals to save up to £50 per month, with a 50% government bonus on the saved amount. This enables families to accumulate funds faster.

Explore Community Savings Schemes:

Local credit unions and community-based savings programmes often provide low-interest savings accounts and financial education for families, offering a stable way to grow savings within a trusted network.

5. Building a Budget and Exploring Part-Time Work

Budgeting for University Expenses:

Creating a budget helps students outline expected costs and avoid unnecessary debt. Budgeting tools, such as mobile apps and online resources, can assist in managing expenses and identifying savings opportunities. For example, cooking at home instead of eating out can significantly reduce monthly expenses.

Part-Time Work Opportunities:

Working part-time while studying can alleviate financial pressure by providing additional funds for everyday expenses. Many universities offer on-campus jobs, which are typically flexible and understanding of students’ academic commitments. However, it’s crucial to balance work and studies to ensure academic success isn’t compromised.

6. Empowering Parents and Guardians with Financial Knowledge

Financial Education for Families:

For many Black and disadvantaged students, parents and guardians play a critical role in providing financial support and guidance. However, they may lack the financial knowledge necessary to save effectively for higher education. Community centres, local charities, and some universities offer financial literacy workshops aimed at helping parents and guardians of underprivileged students.

Seeking Support from Local Organisations:

Numerous organisations provide mentorship and financial guidance to families planning for higher education. For example, The Amos Bursary offers mentoring and financial support to young Black men from low-income backgrounds to help them pursue university education.

7. Leveraging Mentorship and Networking Opportunities

Mentorship can offer valuable advice and open doors to financial resources. Programmes like 100 Black Men of London provide mentoring to young Black students, covering topics from academic guidance to financial planning for university.

Networking with Alumni and Community Leaders:

Connecting with alumni and community leaders who have successfully navigated higher education can provide access to scholarships, internships, and funding opportunities that may not be widely advertised.

8. Staying Informed About Financial Opportunities and Policy Changes

The financial landscape of higher education is subject to change, with new policies, bursaries, and scholarships regularly introduced. Staying informed on available resources, either through school advisers or online platforms like UCAS, can help students access the latest financial support options.

Conclusion

Higher education is an investment with long-term rewards, but for many Black and disadvantaged students in the UK, financial constraints can be a significant barrier. By understanding the costs, exploring scholarships and bursaries, setting up savings accounts, and developing financial literacy, students and their families can alleviate some of the financial strain and work towards a brighter future. Achieving this goal requires collaboration among students, families, schools, and community organisations, but with the right resources and support, it’s a journey that can lead to lasting empowerment and opportunity. Tell us in the comments how you are planning for higher education and what you will do differently having this valuable informations ?

1. All claims for tax credits will end on 5 April 2025. ↩︎