Fear of debt piled as high as a student laundry basket does not have to put people off university. There are now plenty of bursaries available to offset the costs faced during undergraduate days.

In England the onus rests with universities to ensure that top-up fees do not deter potential students, so they are going out of their way to try to make students aware of the money available. Even so, many students are still oblivious to what is on offer or how to access it.

Bursaries ranging from £300 to as much as £3,150 a year are offered by all English universities charging full top-up fees, which stand at £3,145 for 2008-09. Eight out of ten universities promise to give more than the Government's stipulated amount of £300 to students on a full maintenance grant (£2,835 in 2008-09 and based on household income).

A typical bursary is about £1,000 a year and is usually based on household income.

Many universities offer additional financial benefits for students from schools affiliated to the university so it is worth looking close to home. Certain courses also offer subject-specific grants. Contacting universities directly about their student finance schemes gives students a head start in discovering how packages differ and how to take advantage of the chance to boost their bank balances.

Lancashire Central University (UCLan) and Bucks New University have handed out £1,000 to each student every year for the past four years,

regardless of financial means. But this indiscriminate distribution of cash is being reined in because of fears that money is failing to widen access to university and simply subsidising those who would have gone anyway.

Both UCLan and Bucks New have reallocated their bursary money. UCLan freshers next year will receive £310 a year if they qualify for the new maximum maintenance grant of £2,835. All new students can apply for sports and music scholarships and receive grants for educational trips.

At Bucks New students recently opted for free events to replace part of the cash payments. From this September all students will receive automatic membership of sports clubs, and entry to the Students' Union, plus £500 for every year of their course.

Eleanor Alcock, 19, who is in her first year studying airline and airport management, says the extra money was a definite bonus at the start of her course: “Bursaries offered from each university are different but Bucks New tailors them to the students. I chose the university for the course but it was a benefit to receive a bursary as well.”

The University of the West of England (UWE) aims to support 50 per cent of students with bursaries worth up to £1,250 a year. Oxford University offers undergraduates a means-tested maximum of £3,150 a year plus £850 for every first-year student with a household income of less than £18,400.

Students do not always avail themselves of these significant rewards so Oxford University along with many other institutions has launched wide-ranging campaigns with billboard, newspaper and internet advertising to target those applying. Dr Wendy Piatt, director general of The Russell Group of Universities, says bursaries enable a wider range of people to take advantage of higher education. “Our institutions undertake an array of activities aimed at improving information, advice and guidance,” she says.

Despite these efforts, some 12,000 students missed out on money last year simply because they did not tick the box on their student finance application permitting universities to see information about their household income. This year students will have to opt out of sharing financial information in the hope that more students will benefit.

The shortfall in take-up of cash means that once students arrive on campus, universities are doing all they can to get students to take advantage of funding on offer with e-mail reminders and poster campaigns.

Eligibility for bursaries is reassessed each year of study to allow for changes in circumstances, so if a student does not qualify in the first year they can apply again.

Bursaries are only one stream of student income. Full-time undergraduates in England are also eligible for student loans, repayable after graduation, worth up to £3,145 a year to cover tuition fees and up to £4,625 a year (or £6,475 in London) to cover living costs.

The range of bursaries on offer means that if students are in doubt whether they might be entitled to one they should ask, says Sir Martin Harris, director of the Office for Fair Access. “Our message to students is that there is lots of money out there to help you pursue your education. So it's worth checking if you are eligible for support from your university or college.”

Case Study

Mark Willcox received an e-mail during his first year at the University of the West of England, Bristol, telling him he could obtain £1,250 free cash. It was not from a dodgy loans company but from the university and he would not have to pay it back, Joanna Sugden writes.

The 21-year-old second year mechanical engineering student, right, recently picked up his sixth bursary cheque to help with the cost of student life. “I didn't know if I would be eligible for a bursary when I applied but it turns out I was. It takes off a bit of financial strain,” he says.

As Willcox had worked as an apprentice for four years before applying to university, he was assessed on his earnings rather than his parents' income and was eligible for a generous bursary during his first and second years. He hopes he will also benefit next year when he is reassessed.

“It's a bonus when they send an e-mail saying your cheque will be ready in the next few days.”

At his university, students can use the bursary however they like - to offset the cost of living or to reduce their student loan. Willcox uses the extra cash to pay for expensive course books and part of his rent.

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