STUDENT FINANCE MATTERS

STUDENT FINANCE MATTERS

i SESSION CONTENTS • Student Finance England • Section 1 – The Student Finance Package • Section 2 – Student Loan Repayments • Section 3 – Applications & Information • Section 4 – Money Management

! COMMON CONCERNS

! COMMON CONCERNS TUITION FEES My child can’t afford to go to university, it’s far too expensive! i i ! No eligible students will have to pay their tuition fees up-front to go to university or college* Regardless of household income, eligible students can apply for a Tuition Fee Loan to help with the cost of fees, and a Maintenance Loan to help with their living costs *Studying a designated course at a publicly funded university or college

! COMMON CONCERNS COMMON CONCERNS REPAYMENTS i i ! Debt from a student loan will be unmanageable! Repayments don’t start until your child’s income is over £21,000 a year. They’ll then repay only 9% of their income over this threshold The amount they repay will only increase with their earnings as repayments are based on their income, not how much they’ve borrowed

i STUDENT FINANCE ENGLAND

i STUDENT FINANCE ENGLAND • Student Finance England provide financial support on behalf of the UK • Government to students from England entering higher education in the UK: • The two main costs full-time students will have while studying are • tuition fees and living costs • SFE make finance available to help students with both • Depending on their circumstances, course and where they study, • students may be able to get a range of financial help and support • This includes grants and bursaries (which don’t have to be paid back) • and loans (which do)

SECTION 1 THE STUDENT FINANCE PACKAGE

1 THE STUDENT FINANCE PACKAGE SUPPORT AVAILABLE TO STUDENTS INCLUDES: Tuition Fee Loan The Student Finance Package Maintenance (Living Cost) Support Bursaries & Scholarships Additional Support Figures used in this section may change, subject to 2014/15 policy approval

SECTION 1 TUITION FEES & LOANS

1 TUITION FEES & LOANS • Universities and colleges* can charge new full-time students up to • £9,000 per year (£6,750 part-time) for tuition fees • Eligible students won’t have to pay any tuition fees up front • A Tuition Fee Loan is available to cover the fee charged by the university • or college (Up to £6,000 for approved courses at private HEI’s) • Tuition Fee Loan doesn’t depend on household income • SLC pay any Tuition Fee Loan directly to a university or college • The loan is repayable, but only when the student’s future income is • over £21,000 a year *Publicly funded institutions

SECTION 1 MAINTENANCE SUPPORT

1 MAINTENANCE SUPPORT • Maintenance support is available to help with living costs a student • will face while in higher education • Two main types of support are available, Maintenance Loan and Maintenance Grant • The Maintenance Loan is repayable and all eligible students are • entitled to receive some funding • The amount of loan available will depend on where a student lives • and studies • Maintenance support is paid directly into the student’s bank account • each term

1 MAINTENANCE LOAN 2014/15 MAXIMUM RATES Additional loan is available for each extra week of study for students attending their course beyond 30 weeks

1 MAINTENANCE SUPPORT MAINTENANCE GRANT • The Maintenance Grant doesn’t have to be repaid • How much grant a student can get depends on their household • income (100% means tested) • Household income thresholds for 2014/2015: Household Income: Up to £25,000 Full Grant of £3,387 Household Income: Up to £42,620 Partial Grant

1 SUPPORTING AN APPLICATION HOUSEHOLD INCOME • If you will be supporting a student’s application for student finance that • depends on household income, SFE will need to see details of your • household (taxable earned and unearned) income and National Insurance • number(s) • Earned income includes: • Wages, salaries, tips, and other taxable employee pay • Long-term disability benefits received prior to minimum retirement age • Net earnings from self-employment • Unearned income includes: • Interest from savings (only the annual summary is required) • Benefits and Pensions • Rent from property or a room For most applications, SLC verify income from these NI numbers with no need to send any documents, unless we ask for them

1 SUPPORTING AN APPLICATION TAX YEAR USED FOR ASSESSMENTS • Please give financial information for the tax year prior to when the student • will start in higher education • For students starting in Sept 2014 please submit financial information • for the 2012/13 tax year • Supporting an application – Drop in income: • If your income has dropped by 15% or more in the current tax year SFE • can reassess an application so a student may receive additional support • Submitting a Current Year Income form: • Support the student's application for finance as normal • Complete the (CYI) form with estimates of this financial year's details • Provide evidence to support estimates at the end of the current tax year

1 COMBINED MAINTENANCE SUPPORT LIVING AWAY FROM HOME, OUTSIDE LONDON Students can get a quick estimate of their student finance entitlement using the calculator on gov.uk/studentfinance

SECTION 1 BURSARIES & SCHOLARSHIPS

1 BURSARIES & SCHOLARSHIPS BURSARIES & SCHOLARSHIPS • Many universities and colleges offer financial support to their students • through bursaries and scholarships • Bursaries: • Linked to personal circumstances and often, household income • Awards can include fee waivers or cash • Scholarships: • Can be linked to academic results or outstanding ability in an area • such as sport, music or art • Can be subject specific and are limited in numbers Important to check university websites early and ask at open days for information on available bursaries & scholarships

SECTION 1 ADDITIONAL SUPPORT

1 ADDITIONAL SUPPORT ADDITIONAL SUPPORT • Extra support may be available to students who: • Have children or adults dependent on them • Have a disability, long-term health condition, mental-health condition • or specific learning difficulty • Study an NHS or Social Work course • NHS courses include; • Nursing, midwifery, physiotherapy, speech and language therapy, • dietetics, radiography , the later stages of medicine and dentistry For more information on eligibility and applications for NHS support go to: www.nhsbsa.nhs.uk/students

SECTION 2 STUDENT LOAN REPAYMENTS

2 STUDENT LOAN REPAYMENT STUDENT LOAN REPAYMENTS AN OVERVIEW • Students won’t make repayments until their income is over £21,000 • a year gross (before tax) • Full-time studentswill be due to start repaying in the April after graduating from/leaving their HE course • Repayments will be 9% of income over £21,000 and when employed deductions will be made from their pay through the HMRC tax system • If their income falls to £21,000 or below, repayments will stop • Early repayments can be made at any time, but any outstanding • loan balance will be written off 30 years after entering repayment

2 STUDENT LOAN REPAYMENTS THE INTEREST Interest added will vary, depending on a students circumstances: • Interest rate is: • Retail Price Index (RPI) +3% • Interest rate is: • Retail Price Index (RPI) +3% • Interest rate is: • RPI plus up to 3% Income: Below £21,000 During study until entering repayment Income: £21,000 to £41,000 Income: Above £41,000 • Interest rate is: • Set at RPI Only The interest rate applied is updated once a year in September, using the rate of RPI from that March which is carried forward

2 STUDENT LOAN REPAYMENTS THE FIGURES More information on loan repayments and interest rates can be found on: www.studentloanrepayment.co.uk

SECTION 3 APPLICATIONS & INFORMATION

3 STUDENT LOAN APPLICATIONS STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - KEY MESSAGES • Apply online at gov.uk/studentfinance as soon as possible to make • sure their student finance is in place for the start of their course • Make a note of their account log-in details and keep them safe • Students do not need a confirmed place at university or college • to apply for student finance • They can change most details online before starting their course • Agree to share information from their application, this helps apply • for many bursaries and some scholarships

3 STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - COMPLETING AN APPLICATION Before starting the application, students should have the following to hand: • Passport - SLC can check identity using valid UK passport details for most students • University and course details • Bank account details and National Insurance number If you will be supporting a students application you will need to set up your own account on GOV.UK and provide information including: • National Insurance number(s), household income, details of other child dependent’s If you can’t submit your income details online, send a photocopy of evidence including: P60, Pay slips, Tax return, or Pensions

3 GOV.UK FOR MORE INFORMATION & TO APPLY www.gov.uk/studentfinance

3 UNISTATS COMPARE UNI’S COURSES AND FEES www.unistats.direct.gov.uk

SECTION 4 MONEY MANAGEMENT

4 MANAGING YOUR MONEY HINTS & TIPS TO CONSIDER • Before starting in higher education, students should think about the costs • they are likely to face and how to manage their money, tips include: • Plan a budget – and (try to) stick to it! • Ask questions and get any advice they need • Check out student bank accounts and NUS Extra cards • Try to avoid taking credit cards, store cards or pay day loans!! • If they need financial support and advice once they are at university • or college, staff there will be able to help

i KEY MESSAGES KEY MESSAGES POINTS TO BE CLEAR ON • Important to make the right university and course choice!! • Tuition fee support is available to all eligible students and future • repayments are linked to what a student earns, not what they owe • A student loan will not be recorded on a credit file so is unlikely to impact the ability to access future loans, credit or mortgages • Research all finance available – especially bursaries & scholarships • Apply on-line & on time – no need to wait for a confirmed place • And remember that….. Student Finance Matters

? QUESTIONS & COMMENTS

i i NEED MORE INFORMATION? For further Information on student finance and applications go to: www.gov.uk/studentfinance For a range of helpful tools and guidance, visit: www.thestudentroom.co.uk/studentfinance

STUDENT FINANCE MATTERS