Study costs and benefits

The total amount of money that a student requires for educational purposes is known as the Cost of Attendance (COA).

When calculating your COA, a number of costs are decided by the University in accordance with average costs. As part of the loan application process, you will have the opportunity to tell us about the costs that you will face as an individual.

Your COA is calculated as follows (figures are given in pound sterling GBP):

• Tuition and fees - The cost of tuition fees varies depending on the course you are studying. Your tuition fee liability should be confirmed on your offer letter.
• Living expenses - The University has estimated that undergraduate international students joining the University in September 2023 who opt to live in halls of residence will require £10,208 and those who opt to rent privately will require £9,624 to cover their expenses for food and housing over a 39 week period. Postgraduate students who opt to live in halls of residence will require £14,708 per week and those who opt to rent privately will require £12,116 to cover their expenses for food and housing over a 52 week period. 
• Miscellaenous personal expenses - An allowance of £76 per week (if living in halls) or £108 per week (if renting privately) for miscellaneous personal expenses. These expenses include utilities, clothing, leisure and cell phone. For undergraduate students this is calculated over 39 weeks (£2,964 if living in halls and £4,212 if renting privately) and for postgraduate students this is calculated over 52 weeks (£3,952 if living in halls and £5,616 if renting privately).
• Books, course materials, supplies and equipment - £1,000 for each year of study.
• PC/Laptop - £900 in Year 1, £300 for each subsequent year of study for maintenance.
• Transportation - This includes a set cost of £2,000 for two return flights (from the USA to the UK) and local transportation (£1,053 for undergraduate students and £1,404 for postgraduate students). 
• IHS Surcharge/Visa Fee - An allowance for visa application fees, including Immigration Healthcare Surcharge  based on actual costs, dependent on the programme of study. 
• Dependent care - an allowance for dependent care if necessary.
• Disability-related expenses - an allowance to assist with any disability.
• Federal student loan fees - coverage of any charges or premiums associated with a Federal Loan.
• Additional study costs - (e.g. attendance on field trips, conferences etc which are imperative to the completion of the degree program.

Students may apply for an adjustment based on special or unusual circumstances. The University may make adjustments that are appropriate to each student’s situation, with adequate supporting documentation. Determinations are made on a case-by-case basis and in accordance with the University’s Professional Judgement Policy. Please email USLoans@contacts.bham.ac.uk for further information.

Under the Bipartisan Student Loan Certainty Act of 2013, interest rates are established each year for Federal Loans for which the first disbursement is on or after July 17 through to the following June 30. The interest rate for a loan, once established, applies for the life of the loan. Interest rates are published via the Federal Student Aid website.

The US Department of Education provides several budgeting resources to help you prepare for the costs you may face whilst at University:

• Creating your budget
• Budgeting tips

If you took out a student loan, you may be able to deduct up to $2,500 in interest paid yearly. To qualify, you should have used proceeds from the loan towards qualified higher education expenses, including tuition fees, room, board, supplies and other related expenses by you, your spouse or dependant.  To claim this deduction, taxpayers must file the Form 1040. 

The student loan interest deduction is taken as an adjustment to income. This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040).

You may be able to deduct qualified higher education expenses paid during the year for yourself, your spouse or your dependent. 

The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. To claim this deduction, taxpayers must file the Form 8917.

This tuition and fees deduction is taken as an adjustment to income. This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). 

Generally, you can claim the tuition and fees deduction if all three of the following requirements are met:

• you pay qualified education expenses of higher education;
• you pay the education expenses for an eligible student;
• the eligible student is yourself, your spouse, or your dependent for whom you claim an exemption on your tax return.

You cannot claim the tuition and fees deduction if any of the following apply:

• your filing status is 'married filing separately';
• another person can claim an exemption for you as a dependent on his or her tax return, you cannot take the deduction even if the other person does not actually claim that exemption;
• your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return);
• you were a non-resident alien for any part of the year and did not elect to be treated as a resident alien for tax purposes; more information on non-resident aliens can be found in Publication 519, U.S. Tax Guide for Aliens;
• you or anyone else claims an education credit for expenses of the student for whom the qualified education expenses were paid.

Student activity fees and expenses for course-related books, supplies and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution as a condition of enrolment or attendance.

Students may choose to claim educational tax credit (including American Opportunity Credit and Lifetime Learning Credit) instead of tuition and fee deductions.  As the University is not a US tax paying institution, we cannot supply a 1098-T form to students.  

For more information on Tax Benefits, visit the IRS website.