STUDENT FINANCE 2013/14

www.practitioners.slc.co.uk

13/14 STUDENT FINANCE 2013/14

13/14 SESSION CONTENT

• Student Finance Package

• Repayments

• Applications & Information

• Questions & Comments

13/14 GENERAL ELIGIBILITY

• Settled status – can live in the UK without any Home Office restriction.

• Ordinarily resident in England on the first day of the first academic year of their course.

• Been living in the UK for the three years immediately prior to this date.

• Tuition fee support only, without meeting residency requirements for European Union students.

• Exceptions exist for certain groups of students.

GENERAL RESIDENCY REQUIREMENTS

• If the student, their spouse, civil partner, parent/stepparent are recognised by the government as a refugee and lived in England since this status was awarded.

• If the student, their spouse, civil partner, parent/stepparent, have been granted Humanitarian Protection to stay in the UK by the Home Office, resulting from a failed asylum application and meet the standard ‘ordinary’ and 3 year residence requirements.

• EEA /Swiss migrant workers and the children of Swiss and Turkish workers may also qualify for tuition fee loans and additional support if they meet the set employment or residency requirements.

GENERAL RESIDENCY – SOME EXCEPTIONS

! If there is any doubt surrounding their residency status or eligibilityfor funding students should call the SFE help line - 0845 300 5090.

RESIDENCY – 13/14 POLICY CHANGES

• From AY 13/14 applications received from Armed Forces Personnel or their family members will be processed by the funding body in the UK territory where they resided prior to enlisting.

• Unless subsequent to this they have established permanent residence in another administration. (Practice already in place in Wales & Scotland)

• Additional requirement for the residency category ‘Children of Swiss Nationals.’

• The parent(s) of the ‘Child of a Swiss national’ must be exercising their free movement rights in the UK on the first day of the first academic year of the course for the student to be eligible to apply for the full package of support .

Course Eligibility• Courses must be of a certain type and be leading to a recognised

higher education qualification Including:

University or College Eligibility• The HEI must be publicly funded (by UK Government) or privately

funded but running individual courses receiving public funding as designated by the government (BIS).

• First degree (BSc, BA, BEd)• Foundation degree (FdA, FdSc, FdEng)• Higher National Diploma or Higher National Certificate (HND/C)• Diploma of Higher Education (DipHE)• Postgraduate Certificate of Education (PGCE)

COURSE & UNIVERSITY/COLLEGE ELIGIBILITY

• General rule – Tuition fee loan available for full length of the student’s first undergraduate course, plus one additional year if needed.

• If a student has previously studied in the UK, they may still be eligible for maintenance loan support only if they do not have an equivalent or higher level qualification or are studying an ‘exception course’ leading to a professional qualification.*

• Individual circumstances of the student (including any extenuating circumstances) can affect eligibility.

ADD13/14 14/15 15/16 = 4 years support

Example based on standard 3 year F/T Course

PREVIOUS STUDY RULES

! *Medical Doctor, Dentist, Veterinary Surgeon, Architect, Social Worker, Course attracting means tested Healthcare Bursary (NHS)

13/14 STUDENT FINANCE 2013/14

Scholarships & Bursaries

STUDENT FINANCE PACKAGE 13/14

Tuition Fee Loan

Maintenance (Living Cost) Support

Additional Support

Student Finance

Package

13/14 TUITION FEES & LOANS

• Universities/Colleges of HE can charge a fee level of up to £9,000 per year but need to demonstrate increased efforts in widening participation and justification for any fee levels over £6,000.*

• The levels set will be decided by the university including if it charges at different levels for different courses.

• The average fee level for 2012 was around £8,657 up from the initial £7,500 expected government average level.(Independent & Times Higher Education)

*Presented in OFFA approved Access Agreement

TUITION FEE LOAN – FULL TIME

• Students on Sandwich years/study years abroad will be subject to lower fee limits.

• Current levels, up to a basic amount of £3,000 or up to a £4,500 higher amount for students at institutions with an accepted access agreement.

• Students at private institutions not receiving funding from HEFCE but offering courses designated by BIS will be entitled to borrow up to £6,000 to cover their tuition costs.

• If the private institution is charging more, the student will need to self-fund the remainder.

TUITION FEES – FULL TIME

• Eligible students will not have to pay up front for their tuition.

• The non means tested tuition fee loan (not dependant on household income) is available to cover the fee levels set by the HEI. Up to £9,000 max for full-time courses (£6,000 at private institutions)

• The Student Loans Company will lend the requested amount and pay the university/college directly in instalments across the academic year.

Not compulsory, Students can also*:• Pay full fees upfront to the university/college, or

• Pay part of the fees and take tuition fee loan for the rest

* To be agreed with the institution

PAYING THE TUITION FEE

Tuition Fees will be paid to a HEI at three points in the academic year.

Liability date% of Tuition Fee loan student will be liable

for First day of Term 1* 25%First day of Term 2 25%First day of Term 3 50%

PAYING THE TUITION FEE

! Interest on the loan will be charged from the day payment is made to the university/college, not from the liability date.

*Two weeks after Term 1 start date for part-time courses

• From September 2012 new part-time students can apply for a non means tested tuition fee loan which replaces the means tested fee and course grant. (Continuing students can still apply for these grants)

• The maximum universities or colleges can charge for part-time courses is £6,750 a year.

• Students starting designated P/T courses provided wholly by a private institution can apply for up to £4,500 in tuition fee loan.

• The amount charged will depend on the intensity of their course. (Minimum 25% Maximum 75%) Students must complete their part-time course in no more than 16 years.

PART TIME STUDENTS

• Part-time students will not be entitled to a loan or grant towards living costs but can access Disabled Students Allowance. (DSA)

• Part-time students from a low-income household may get support through the National Scholarship Programme and should look into other bursaries/scholarships offered by universities/colleges.

Part-Time study & benefits • Part-time students can usually still claim benefits that depend on

household income (means-tested benefits) such as;Income-based Jobseekers Allowance, Housing Benefit, and Council Tax Benefit if unemployed.

PART-TIME STUDENTS

! Given the complexity of benefits, students should always contacttheir local Jobcentre Plus for on-going eligibility assessment.

13/14 MAINTENANCE SUPPORT

• The majority of the repayable maintenance loan will be available to all eligible students. 65% of the total loan is Non Means Tested. (Not based on household income)

• The amount of maintenance loan available will be linked to where a student lives and studies while in higher education.

MAINTENANCE LOAN

Full-Year Student

65% Non Means Tested

35% Means Tested

Maximum Loan

Parental Home £2,843 £1,532 £4,375

Elsewhere £3,575 £1,925 £5,500

London £4,988 £2,687 £7,675

Overseas £4,247 £2,288 £6,535

MAINTENANCE LOAN – 13/14 RATES

Additional means tested loan is available for each extra week ofstudy for students attending their course beyond 30 weeks.!

• The maximum non repayable maintenance grant level in 2013 is £3,354.

• Unlike 100% of the tuition fee loan and up to 65% of the maintenance loan, the grant a student receives is solely dependant on household income levels. (100% Means Tested)

Household Income Thresholds:

• Students from households with income of up to £25,000 will be entitled to the maximum grant of £3,354.

• Students from households with incomes of up to £42,611 will be entitled to a partial grant.

MAINTENANCE GRANT

Household Income £

Maintenance Grant

Maintenance Loan Total

£25,000 & under £3,354 £3,823 £7,177£30,000 £2,416 £4,292 £6,708£35,000 £1,478 £4,761 £6,239£40,000 £540 £5,230 £5,770£42,611 £50 £5,475 £5,525£42,875 £0 £5,500 £5,500£50,000 £0 £4,788 £4,788£60,000 £0 £3,788 £3,788£62,125 & over £0 £3,575 £3,575

Student living away from home, outside London 2013/14

COMBINED MAINTENANCE SUPPORT

13/14 SCHOLARSHIPS & BURSARIES

Bursaries:• May link to National Scholarship Programme.• Linked to personal circumstance and often, income level.• Vary by institution.

Scholarships:• Linked to academic results or ability in sport, music etc..• Subject specific or generic.• Limited in numbers.

SCHOLARSHIPS & BURSARIES

!Students should check university websites and ask at open daysfor information on bursaries and scholarships – what is availableand how/when to apply.

13/14 ADDITIONAL SUPPORT

• Help towards the additional costs that a student may face as a result of their disability, mental-health condition or specific learning difficulty.

• In addition to the standard student finance package,

• Does not have to be repaid,

• Is not affected by the household income,

• Looks at the specific needs of the individual in relation to their circumstances and studies.

DISABLED STUDENTS’ ALLOWANCES

! Students need to be aware the DSA application process can take up to 14 weeks!

AllowancePart-time maximum support

Full-time maximum Support

Frequency of Payment

Non-medical personal helper £15,390 £20,520 Annual

Specialist equipment £5,161 £5,161 Duration of

courseOther disability-

related expenditure £1,293 £1,724 Annual

Disability-related travel

No Limit – reasonable spending can be claimed

DSA Allowance rates 2013/14

! For both full-time and part-time postgraduate students there is a single allowance of up to £10,260 a year.

DISABLED STUDENTS’ ALLOWANCES

Childcare GrantBased on 85% of actual registered/approved childcare costs up

tomaximum of: £148.75 per week for one child

£255 per week for two or more children

Parents’ Learning AllowanceHelp with course-related costs for students with dependent

children.Amount received will be between £50 and £1,508.

Adult Dependants’ GrantNormally for the student’s partner. Can be for another adult who is financially dependent on the student where the adult’s net income is not more than £3,796 p.a. Maximum grant available: £2,642.

DEPENDANTS GRANTS

! Dependants grants are income related. Universities may offer additional support to students with childcare/caring responsibilities.

13/14 24+ ADVANCED LEARNING

• Learners aged over 24 in further education (FE) and training will be able to access finance on the same basis as in higher education (HE).

• Learners can apply for a loan to meet the upfront contribution costs of their course, which will be paid directly to their college or training organisation on their behalf.

• Loans available for Level 3 courses and above, this will include;

• A-Levels, Access to HE, Level 3+ Apprenticeships and other academic qualifications eligible for public funding (provided they are funded at least to the level of a QCF Certificate)

24+ ADVANCED LEARNING LOANS

• SLC will be responsible for the loan application, assessment, payment (direct to the college/training organisation) and work with HMRC on repayment.

• The repayment of FE loans will operate on the same, incomecontingent basis as loans in HE. (based on 9% of income earnedabove £21,000)

• Amount of loan available will reflect funding rate for course. Maximum amount of loan will be equal to the fully funded rate for a level 3 or Level 4 course. (Up to £4,000 TBC)

• Learners who have taken out a loan for FE and training will still be able to take out a loan for HE.(If no previous HE study exists)

• Loans available to those aged 24 and over at beginning of course and meeting standard residency requirements.

Maximum period allowable for loan support:• 2 years for a Level 3 or 4 Certificate, 3 years for a Level 3 or 4 Diploma • 2 years for Advanced (Lev 3 ) Apprenticeship• Higher Level Apprenticeships TBC

Individuals taking Access to HE courses: • On completion of their Higher Education course, the SLC will write

off the amount outstanding on the loan for the Access course.

!‘Access courses are designed to help those with low qualifications but high ambitions progress into Higher Education, so it is right that we should support those learners.’

September 2012 Communications to learners begin, with materials being made available to

support discussions and communications with potential learners.

Learners can begin to apply for a 24+ Advanced Learning Loan for courses starting in the 2013/14 academic year.

April 2013

Regulations laid before Parliament (to come into force on 1 September 2012) on implementation of 24+ Advanced Learning Loans.

July 2012

Final confirmation of “Loans facility” to colleges and training organisations for 2013/14 academic year.

December 2012

First cohort of 24+ Advanced Learning Loan students commence study.

August 2013

24+ ADVANCED LEARNING LOANS – KEY DATES

If colleges or training organisations have any questions about the 24+Advanced Learning Loan implementation, please email the SkillsFunding Agency: advancedlearningloans@skillsfundingagency.bis.gov.uk

www.bis.gov.uk/policies/further-education-skills/24-plus-advanced-learning-loans

For further information on the 24+ Advanced Learning Loan policy see:

www.skillsfundingagency.bis.gov.uk

www.lpservices.slc.co.uk Providers of FE can find more details at:

13/14 STUDENT LOAN REPAYMENT

• Graduates will not make repayment contributions until they are earning at least £21,000 (£1,750 pm) gross.(On entering repayment, his threshold will rise annually in line with inflation/earnings)

• Full time students will begin to repay in the April after graduating from/leaving their HE course. (After 2016)

• Part time students can begin to repay in the April 4 years after they have started their course. (If earning over £21,000)

• Repayments will be a basic 9% of income over £21,000 and will be deducted automatically from pay through the HMRC tax system for most students.

• If income falls to £21,000 or below repayments will be suspended.

STUDENT LOAN REPAYMENTS

Income each year before tax

Income from which 9% will be

deducted

Approximate Monthly

Repayment£21,000 £0 £0£25,000 £4,000 £30£30,000 £9,000 £67£35,000 £14,000 £105£40,000 £19,000 £142£45,000 £24,000 £180£50,000 £29,000 £217£60,000 £39,000 £292

STUDENT LOAN REPAYMENT – THE FIGURES

! Any outstanding loan balance will be cleared 30 years afterentering repayment.

There will be a variation in the interest rate attached to a students loan during study and when earning following graduation:

STUDENT LOAN REPAYMENT – INTEREST RATES

! No penalties will be placed on students making early repayments.

During study until entering repayment

Interest rate is: Retail Price Index (RPI) +3%

Earnings: Below £21,000

Interest rate is: Set at RPI Only

Earnings Between: £21,000 - £41,000

RPI plus some amount between 0% and 3%

Earnings:Above £41,000

Interest rate is: Retail Price Index (RPI) +3%

Gross Income Old SystemMonthly Repayment

New SystemMonthly Repayment

£16,000 £1 £0£18,000 £16 £0£21,000 £39 £0£24,000 £61 £23£27,000 £84 £45£30,000 £106 £67£33,000 £129 £90£36,000 £151 £113

STUDENT LOAN REPAYMENT – COMPARISON

! The first earnings linked rise in repayment thresholds for existing ICR students occurred in April 2012. Up from £15,000 to £15,795.

Example 1 Old System Student

• 3 year course, £3,000 a year fees• £4,000 a year maintenance loan

• 25 year write off period

Owes £23,000 at end of studies, including interest

Starting Salary of £24,000

Total Repayments = £35,500

Repay full balance in 24.5 years

STUDENT LOAN REPAYMENT – COMPARISON

! Assumptions: 2% salary growth, 3% average inflation. Based on a report by HEPI on the Government White Paper.

Example 2 New System Student

• 3 year course, £9,000 a year fees• £4,300 a year maintenance loan

• 30 year write off period

Owes £45,000 at end of studies,including interest

Starting Salary of £24,000

Total Repayments = £22,000

Balance written off after 30 years

www.studentloanrepayment.co.uk

STUDENT LOAN REPAYMENT – DEDICATED WEBSITE

Students & Parents/Sponso

Customer Helpline

0845 300 5090

Customer Websitewww.direct.gov.uk/studentfinance

Expert Advicefor Practitioners

Practitioner Helpline

0845 602 0583

Practitioner Team Emailssin_queries@slc.co.uk

Local Supportfor Practitioners

Ben Rutter075544 58871

Local SFAben_rutter@slc.co.uk

STUDENT FINANCE ENGLAND – KEY CONTACTS

13/14 ? QUESTIONS & COMMENTS

STUDENT FINANCE 2013/14

Documents

Personal Finance - Unit 2 Student Finance

The 2012/13 Student Finance Application Student Finance England

STUDENT FINANCE 2014/15 Paul Shipton Student Finance Wales

Student Finance

NHS Student Finance

STUDENT ORGANIZATION TRAINING FINANCE MODULE – EVENT PLANNING & CONTRACTING Effective July 14, 2015

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