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Agenda

Agenda. Welcome and Introduction Setting the scene Student Funding 2012 Presentation Exploring the resources Q&A Refreshments . Student Money Advice. Mobina Begum, Andrea Simpson, John Tate National Association Student Money Advisers (NASMA) www.nasma.org.uk

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Agenda

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  1. Agenda Welcome and Introduction Setting the scene Student Funding 2012 Presentation Exploring the resources Q&A Refreshments

  2. Student Money Advice Mobina Begum, Andrea Simpson, John Tate National Association Student Money Advisers (NASMA) www.nasma.org.uk www.leedsmet.ac.uk/moneyadvice

  3. The Independent Taskforce on Student Finance Information The Taskforce was launched in June 2011. Headed by Martin Lewis of MoneySavingExpert.com, deputised by Wes Streeting, NUS President 2008-2010, Made up of groups including NASMA Universities UK, the NUS and UCAS The Taskforce is independent of, but backed by, government and sets its own agenda.

  4. Changes Proposed from 2012 Government proposals are set out in the white paper “Students at the Heart of the System” Department Business Innovation and Skills www.bis.gov.uk

  5. Student FundingFor students from England who start in 2012

  6. Key Changes – 2012 • Reduction in Direct Grant from HEFCE to universities • Funding to come mainly from tuition fee loans • Tuition Fees increased up to £9,000 • Repay when earnings over £21,000 • Interest added at inflation plus up to 3% • Loans to replace grants for part-time students • Introduction of the National Scholarship Programme

  7. Tuition Fee Support - 2012 Tuition Fee Loans • Available to all eligible undergraduate students, available to both full-time and part-time students • Not income-assessed • Paid direct to university by Student Loans Company

  8. Living cost support - 2012 Student loan for living costs • Living away from their parents’ home between £3,575 and £5,500 depending on household income • Living in their parents’ home between £2,844 and £4,375 depending on their household income

  9. Living cost support - 2012 Non-repayable Maintenance Grant • Students can get £3,250 grant where their household income is £25,000 or less • Partial grant to students where household income between £25,000 and about £42,600 • Reduces Maintenance Loan entitlement

  10. Other Support • University bursaries and scholarships • National Scholarship Programme • Grants for part-time courses • Extra help for students in special circumstances, e.g. students with a disability or with dependants • NHS and Social Work courses funded differently • Access to Learning Fund • Charity and Trust funds • Welfare Benefits

  11. Living cost loan and grant

  12. Living Costs • Student weekly spending • Course costs £25 • Food & Household £53 • Rent £103 • Socialising £31 • Travel £36 • Other £50 • TOTAL per week £298 Annual total (x 39 weeks) £11,622 From: NUS/HSBC Student Experience Report 2010, figures rounded

  13. National Scholarship Programme • Purpose is to provide a direct benefit to eligible students • Students whose household income is below £25,000 will be eligible • £50 million contributed by the government in 2012/13 proposed to increase to £150 million by 2014/15 • Governments contribution to be matched by the institutions • Administered by the universities

  14. Social Work and NHS Bursary • At the moment there is extra support for Social Work and NHS courses. • No details have yet been published about support in 2012 for Social Work students • See www.nhsbsa.nhs.uk/Students for details about NHS and Social Work bursaries

  15. NHS Courses The new package of support will provide new students on NHS Courses with • fees paid by the NHS • a small non-means tested grant, • a means tested bursary • a reduced rate non-means-tested loan.

  16. NHS Courses - cont A healthcare student on an eligible course of 45 weeks in duration and studying outside London could receive • a non-means tested grant of £1,000, • a means tested bursary of up to £4,395  • a non-means tested loan of up to £2,324.

  17. Student loans – repayment 2012 • All loans together in one account • Interest at rate of inflation (RPI) plus 3% while on course up till the April after course ended • April after leaving university, if earnings are below £21,000 interest will be applied at the rate of inflation • Repaid when earnings are above £21,000 • £21,000 threshold rises in line with average earnings • Repaid through the income tax system

  18. Student loans – repayment 2012 • Repay 9% of annual earnings above £21,000 • Between £21,000 and £41,000 interest applied between RPI and RPI+ 3% (on a gradual scale) • Earnings above £41,000 interest applied at RPI + 3% • Loans cancelled after 30 years

  19. Loan Repayment – from 2016

  20. Think of it as a tax … It's repaid through the income tax system System is designed to make the graduate who benefits from the education pay for it You only repay it if you earn over a certain amount The amount repaid increases with earnings It does not go on credit files Debt collectors will not chase for it Bigger borrowing doesn't increase repayments Many will repay for the majority of their working life

  21. Problems getting a mortgage? The Council for Mortgage Lenders "A student loan is very unlikely to impact materially on an individual's ability to get a mortgage but the amount of mortgage available may depend on net income."

  22. Useful contact & websites Student Money Advice www.leedsmet.ac.uk/moneyadvice Student Finance England Tel: 0845 300 50 90 www.direct.gov.uk/studentfinance http://practitioners.studentfinanceengland.co.uk/ Department Business Innovation and Skill www.bis.gov.uk Money Saving Expert www.moneysavingexpert.com The Independent Taskforce on Student Finance Information www.studentfinance2012.com

  23. Any questions?

  24. The accuracy of the guidance in this Powerpoint is based on the best information available at the time of writing. However, such information is subject to change, sometimes at short notice. Be aware that the Powerpoint may be misleading if used in isolation. Whilst care has been taken to ensure that all information is correct, the Leeds Met Student Money Advice services does not accept responsibility for errors, omissions or inaccuracies 05/10/2011.

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