Student Finance 2012 and beyond

2. Student Finance 2012 and beyond Presented by: Kirsty Wilkinson kwilkinson@dmu.ac.uk

3. Overview Tuition Fees Living Costs Tuition fee loan (repaid) Maintenance loan (repaid) Living cost grant (free) Bursary from university (free) National Scholarship scheme (free) Supplementary income

4. Changes for this year… • Tuition fees will range between £6,000 - £9,000 per year (likely to be closer to £9,000). Current students will benefit from OFFA • You wont pay for tuition up front – tuition fee loan • Repayments on student loans will not begin until income of £21,000 • Remaining debt wiped after 30 years

5. How to Apply • All applications dealt with via Student Finance England • Online application (but paper is available) • Applications are open! (Close end of May) • www.direct.gov.uk/studentfinance • Student Helpline 0845 300 5090 • CRN • Eliminate sections • Passport Verification • Track facility – change basic details • Facebook/ Twitter updates for deadlines • Webchats

6. Tuition Fees • Between £6,000 and £9,000 per academic year • Fees will vary between course and universities • Fees paid either by: - Living cost grant along with - Tuition fee loan or - Private Finance or - Combination of the above

7. Living cost Grant • Maximum Grant of £3,250 per academic year • Non-repayable! • Means-tested • - <£25,000 = Full Grant • - £25,000 – £42,600 = Variable Grant • Paid in 3 instalments direct to the student • Can spend on living costs/tuition fees • + Great support to students from lower incomes • - Household income may mean you don’t qualify

8. Tuition fee loan • Available to all applicants • Non-means tested • £6,000 to £9,000 available per year - linked to course costs • Paid direct to the university • Repaid by student after graduation • + Great for cash flow and takes pressure off parents • - Is “borrowed” money so does need to be paid back

9. The Maintenance Loan: the facts • To cover living and study costs • 65% non means-tested • 35% means-tested; What you get depends on: - Household Income - Where you live and study - The year of course you’re on - Step parents’ income • Paid in 3 instalments direct to student

10. The Maintenance Loan 2012 (for living costs)

11. Repayments • Starts in April after graduating • Loan repayments linked to your salary: • <£21,000 – no payments • £25,000 = £30.00 per month • £30,000 = £67.50 per month • £40,000 = £142.50 per month • Interest is initially linked to RPI + 3% • Repayments remain fixed regardless of total amount borrowed

12. Scholarships and Bursaries • DMU Bursary £1,000 per year (family income under 25K) • Academic Scholarship £1,000 per year (340 UCAS points and apply before 15 January

13. Costs & Budgeting

14. Additional costs

15. Supplementary income • Part-time job • Work during holidays • Work placements (a chance to save) • Banks – overdrafts • NHS bursaries • Parents?

16. Things to bear in mind • Council of Mortgage Lenders advise that student loan debt is “very unlikely” to impact on an individuals ability to get a mortgage • Over a lifetime a graduate earns approximately £100,000 more than a non graduate • Changes to British industries • Paying for the “life experience” as well as the education

17. Graduate Salaries (2009)