Sixth Sense Blair Campbell Student Finance IAG Team 13 May 2013

Sixth Sense

Blair Campbell

Student Finance IAG Team

13 May 2013

Objectives

• Changes this year, full-time and part-time

• A strong grasp of repayment

• Where to get further information

• Discussion common areas of uncertainty and difficult questions

But first...

Q: How much does

this textbook

cost?

A: £46.99

(Pearson education)

Q: How much do these

noodles cost?

A: 11p

Q: How much does a 16-25

railcard cost?

A: £28 for 1 year,

£65 for 3 years

Q: What is the average cost

of one of these?

A: £3.21

(£3.03 for Ale)

(Source: CAMRA)

Q: What is the approx average

cost of accommodation?

A: £117.67

per week

(NUS 2012)

Why is this important?

“We did a YouGov poll of 1,000 school-age students in Clearing and 44% thought they had to pay their fees upfront. That is terrifying”

http://www.guardian.co.uk/education/2013/jan/21/universities-brankruptcy-market-forces-cutbacks

Student Finance in 2014/15

Key Points for 2014/15

• Tuition Fees remain at £9,000 max

• Small (1%) increase in maintenance support – e.g. grant up from £3,354 to £3,387 max

• Continued transition to Gov.uk

www.practitioners.slc.co.uk

14/15 APPLICATION INFORMATION

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• Apply as soon as possible – deadline is 31 May

• Don’t need a confirmed offer, apply with first choice university/college

• Apply online through GOV.UK

• Only supply additional finance/ID evidence if we ask for it

• Details can be changed online if necessary (Change of course etc)

• If unsure of tuition fee amount needed, select maximum

APPLICATIONS – KEY MESSAGES


FOR MORE INFORMATION AND TO APPLY

www.gov.uk/studentfinance


THE STUDENT ROOM - FOR FURTHER INFORMATION

www.thestudentroom.co.uk/studentfinance


14/15

Scholarships & Bursaries

STUDENT FINANCE PACKAGE

Tuition Fee Loan

Maintenance (Living Cost) Support

Additional Support

The

Student Finance

Package

! *Figures used in this section are subject to final 2014/15 policy approval and may change


14/15 TUITION FEES & LOANS


• Up to £9,000 per year (£6,750 part time)

• Maximum loan depends on fee charged

• Optional - take all, part or none of fee loan

• Average fee in 2012 was around £8,500

• Higher fees ≠ higher cost

TUITION FEE LOAN – FULL TIME


14/15 MAINTENANCE SUPPORT


Where Students Live & Study Maximum Loan Available

Parental HomeLive at home £4,418

ElsewhereLive away from home and study

outside of London£5,555

LondonLive away from home and study in

London£7,751

OverseasStudy overseas as part of a UK course £6,600

MAINTENANCE LOAN – 2014/2015 RATES*

Additional loan is available for each extra week of study for studentsattending their course beyond 30 weeks!


14/15

• The Maintenance Grant doesn’t have to be repaid

• How much you get depends on household income (100% means tested)

Household income thresholds for 2014/2015:

• Up to £25,000 can - maximum grant of £3,387*

• Up to £42,611 - partial grant

*Pending final policy approval

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 LOAN AND GRANT EXAMPLE


14/15 SCHOLARSHIPS & BURSARIES


14/15

Bursaries:• Could be available through National Scholarship Programme• Linked to personal circumstance and often, household income• Vary by university or college

Scholarships:• Can be 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


• Household income under £25k - assessed by SLC • Ordinary resident in England• Applied for means tested maintenance support• Application automatic via information supplied to SLC

Year 1 - Fee Waiver £3,500 Accommodation Bursary £1,000Year 2+ - Income related university bursary up to £2,000

Up to 374 Awards Over 550 Awards

Year 1 Only – Fee Waiver £7,000Cash Bursary £1,000 & £1,000 on ‘university account’ for use on other costs (accommodation, books etc..)

• On full-time undergraduate course with £9,000 fee• Ordinary resident in England, household income under £42k• Household in low participation region as identified by HEFCE• Eligibility checked via UCAS and student finance application

Up to 504 AwardsHOW

MANY

£9,000 over three years£3,000 can be taken cash, Example - £2,000 fee waiver & £1,000 cash or accommodation discount per year

THE

OFFER

• SLC assessed household income under £25k• Have made university firm choice through UCAS• Meet one of the universities set under represented criteria• Application to be made direct to university

TO

QUALIFY

NATIONAL SCHOLARSHIP OFFERS – 13/14 EXAMPLES


14/15 ADDITIONAL SUPPORT


14/15 ADDITIONAL SUPPORT

Extra money or support may be available to students if they;

• Have children or adults dependent on them

• Have a disability, long-term health condition, mental-health condition or specific learning difficulty

• Studying an NHS or Social Work course

• NHS courses include;Nursing, midwifery, physiotherapy, chiropody, dietetics, radiography, occupational therapy, the later stages of medicine and dentistry

! For further information and applications students should visit:www.nhsbsa.nhs.uk/students


14/15STUDENT LOAN REPAYMENT –

THE REAL COST

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• Nothing to pay until income is over £21,000 a year (£1,750 pm) gross - threshold will rise annually in line with average earnings increase

• Full time students will repay from April after graduating from/leaving their HE course (from April 2016 at the earliest)

• Part time students will repay from April 4 years after they started their course, or April after they leave their course (from April 2016 at the earliest, if income is over £21,000)

• Repayments are 9% of income earned over £21,000

• If income falls to £21,000 or below repayments will stop

STUDENT LOAN REPAYMENTS

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• Any remaining balance cleared 30 years after entering repayment process

• No penalties for early repayments

• ‘A student loan is very unlikely to affect your ability to get a mortgage’

(The Council for Mortgage Lenders)

• Mortgage lenders are more interested in your spare monthly income (‘ability to repay’)

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.


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, available here.

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

http://www.hepi.ac.uk/466-1987/Higher-Education--Students-at-the-Heart-of-the-System.-An-Analysis-of-the-Higher-Education-White-Paper-.html


Gross IncomeOld System

Monthly RepaymentNew System

Monthly Repayment

£16,000 £1 £0

£18,000 £16 £0

£21,000 £39 £0

£24,000 £61 £23

£27,000 £84 £45

£30,000 £106 £68

£33,000 £129 £90

£36,000 £151 £113

STUDENT LOAN REPAYMENT – COMPARISON

! This year will see the first earnings linked rise in repayment thresholds for existing students. Up from £15,000 to £15,795.


www.studentloanrepayment.co.uk

STUDENT LOAN REPAYMENT – DEDICATED WEBSITE


14/15 RESOURCES AND FURTHER INFO

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PRACTITIONERS WEBSITE


APPLICATION DEMO – ASSIST AND SUPPORT STUDENTS


FACT SHEETS

Comprehensive suite of factsheets covering key areas of student finance, including: • Full-Time and Part-Time Support

• Eligibility, Applications and Repayments

• Disabled Students’ Allowances

• Care Leavers, Study Abroad and Other Support

• Students with Dependants

• Information for Parents of Students


• How and when to apply

• Disabled Students’ Allowances (DSAs) Key Steps

• Dependants Grants

• What, how and when to repay

• Student finance explained: For parents of students

QUICK GUIDE SERIES – DOWNLOAD OR ORDER

Blair Campbell

[email protected]


Documents

Sixth Sense Blair Campbell Student Finance IAG Team 13 May 2013