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Student Finance

Student Finance. Content. How it all works Applying Repaying Resources. A word about fees. Up to £9,000 per year… …but tripling fees ≠ tripling costs: the real cost is in repayment Nothing has to be paid upfront Most students won’t repay the full amount borrowed.

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Student Finance

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  1. Student Finance

  2. Content • How it all works • Applying • Repaying • Resources

  3. A word about fees • Up to £9,000 per year… • …but tripling fees ≠ tripling costs: the real cost is in repayment • Nothing has to be paid upfront • Most students won’t repay the full amount borrowed

  4. Summary of changes for 2013 • Full and part-time fees remain £9,000 max • Living cost loans remain fixed at 2012 rates • Household income thresholds remain fixed at 2012 rates

  5. What support could I get?

  6. Tuition Fee Loan • Loan for cost of fees ( up to £9,000 per year in 2013) • Available for full-time and part-time study • Repay only once graduated and once earning £21k

  7. What support could I get?

  8. Living Cost Support • Money for living costs – bills, food, rent • Amount depends on income • May receive a grant (non-repayable) – earnings under £42,600 • Repay loans only once graduated and once earning £21,000

  9. Combined Support for Living Costs Student living away from home outside London 2013

  10. What support could I get?

  11. Scholarships & Bursaries • Bursaries: • May link to National Scholarship Programme • Depend on circumstances • Vary by institution • Scholarships: • Academic, sport or music • Subject specific or generic • Vary by institution

  12. Additional Support • May receive extra money or support if you: • Have children or adults dependent on you • Have a disability or learning difficulty • Are a student parent

  13. Applying

  14. www.direct.gov.uk/studentfinance

  15. https://www.gov.uk

  16. Applications • Apply early, apply online • Consent to share: helps with scholarship/bursary provision • Only supply evidence if you are asked for it. • Check online account before calling to save time

  17. Applications cont. • No need to wait for a confirmed place • If unsure of fee amount, select ‘maximum’ • Process in place for students with incorrect fee loan

  18. Resources

  19. www.facebook.com/SFEngland www.twitter.com/SF_England • Daily surgeries • Announcements on key dates, turnaround times etc. • Links to information and guidance materials

  20. www.thestudentroom.co.uk/studentfinance

  21. www.thestudentroom.co.uk/studentfinance Sifter widget

  22. Explaining Repayment www.studentloanrepayment.co.uk

  23. Student Loan Repayment • You are eligible for repayment: April after you leave/graduate if full-time, or April 4 years after starting if part-time • No repayments until earning over £21,000 pa gross • Repayments via HMRC @ 9% of earnings above £21,000 • No early repayment charge • Any outstanding debt written off after 30 years

  24. Student Loan Repayment

  25. Interest Rates

  26. Interest RatesICR Historical Interest Rates *2.56 is the median – the interest rate was adjusted down four times in 2008/09

  27. Additional Info • A student loan is unlikely to affect your ability to get a mortgage (The Council for Mortgage Lenders ) • Mortgage lenders are most interested in your monthly income (‘ability to repay’) • Under the new system monthly repayments lower = greater monthly income • Students may find they are better off…

  28. Better off with higher fees? Example 1 (old system): • Old system student borrows £21,000 at end of studies (£3,000 per year fees loan x 3 + £4,000 living cost loan per year x 3) • Plus interest owes approx £23,000 after studies • Starting salary of £24,000 • Total repayments = £35,500 (repaying full balance in approx 24.5 years) Assumptions: 2% salary growth, 3% average inflation/interest

  29. Better off with higher fees? Example 2 (new system): • New system student owes £40,000 at end of studies (£9,000 per year fees loan x 3 + £4,300 per year living cost loan x 3) • Plus interest owes approx £45,000 after studies • Starting salary of £24,000 • Total repayments = £22,000 (balance written off after 30 years) Assumptions: 2% salary growth, 3% average inflation/interest

  30. Student Loan Repayment

  31. Order here

  32.  0845 300 5090  www.direct.gov.uk/studentfinance  www.thestudentroom.co.uk facebook.com/SFEngland @sf_england

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