Many of you may have been considering the issue of funding for higher education, especially since parliament has given the green light for universities to begin charging tuition fees.

What are the current costs?

A three-year course at a university outside central London, including fees and living expenses, will cost around £23,150 (National Union of Students Press Pack 2003/2004).

It is important to understand the proportion of the tuition element in relation to living expenses. Just £3,460 of this total three year cost - that's less than 15 per cent - represents the tuition fees that most students now pay.

What are the facts?

From 2006 Universities will be able charge up to £3,000 a year in tuition fees. The fees will be capped at £3,000, only rising in line with inflation.

Upfront tuition fees will be abolished.

The student loan will be increased in line with basic living costs of the average student.

Graduates will not have to start paying for student loans and tuition fees until they are earning more than £15,000 a year (raised from £10,000).

All student debts will be cleared after 25 years.

A £1,500 a year Higher Education grant (raised from £1,000) for the poorest full-time students.

A new £1,200 year fees grant for the poorest full-time students.

These proposed changes mean that 30% (The Children's Mutual) of students from the poorest families are guaranteed £3,000 a year in financial support.

All students should benefit from not having to pay back students debts until they are earning more than £15,000 a year.

The average student could expect to pay their debts back in around 13 years (The Children's Mutual), but for those who have higher than average debts, those who take lower paid jobs, or take time out for families this could be longer. Regardless of this, any remaining student debt will be cleared after 25 years.

If you would like to share any topic of financial planning with the readers please contact me: Tel: 01772 253300 or e-mail: enquiries@sage-ifa.co.uk

Sage Financial Management Limited is an appointed representative of Berkeley Independent Advisers Limited, which is authorised and regulated by the Financial Services Authority.