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INTRODUCTION TO STUDENT FINANCE

INTRODUCTION TO STUDENT FINANCE. INFORMATION FOR PARENTS. i. SESSION CONTENTS. Section 1 – SFE & The Student Finance Package Section 2 – Applications & Information Section 3 – Student Loan Repayments Section 4 – Money Management Questions or Comments. STUDENT FINANCE ENGLAND.

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INTRODUCTION TO STUDENT FINANCE

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  1. INTRODUCTION TO STUDENT FINANCE INFORMATION FOR PARENTS

  2. i SESSION CONTENTS • Section 1 – SFE & The Student Finance Package • Section 2 – Applications & Information • Section 3 – Student Loan Repayments • Section 4 – Money Management • Questions or Comments

  3. STUDENT FINANCE ENGLAND SECTION 1

  4. STUDENT FINANCE ENGLAND AN INTRODUCTION • 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).

  5. THE STUDENT FINANCE PACKAGE* SECTION 1 *All figures used in this section are subject to final approval of the 2015/16 student finance policy

  6. TUITION FEE Loan Extra Support SECTION TITLE IN HERE SUBHEADER IN HERE SECTION 3 Student Finance Package Maintenance Support

  7. HOW MUCH DO YOU KNOW? TUITION FEES – CAN STUDENTS AFFORD IT? Q Q A A What’s the maximum tuition fee universities or colleges can charge new students in 2015/16?* £0 – Regardless of your household income, a Tuition Fee Loan is available to all eligible students. £9,000 How much of this will students need to pay up front before they go to uni or college?* *Eligible English domiciled students studying at a publicly funded university or college

  8. TUITION FEES AND LOANS AN OVERVIEW • Universities and colleges* can charge new full-time students up to • £9,000 per year in 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 a university • or college.** • A Tuition Fee Loan doesn’t depend on household income. • SFE pay the Tuition Fee Loan directly to a university or college. • The loan is repayable, but only when a student’s income is over £21,000. *Publicly funded institutions **Up to £6,000 for approved courses at private providers

  9. Tuition Fee Loan Extra Support SECTION TITLE IN HERE SUBHEADER IN HERE SECTION 3 Student Finance Package MAINTENANCE Support

  10. MAINTENANCE SUPPORT AN OVERVIEW • Maintenance support is available to help students with their living costs while in higher education. • There are two main types of support, Maintenance Loan (repayable) • and Maintenance Grant (non-repayable). • All eligible students are entitled to receive some Maintenance support. • The amount of Maintenance Loan a student gets depends on where • they live and study. • Maintenance support is paid directly into a student’s bank account each term.

  11. Up to £8,009 Up to £5,740 Up to £4,565 MAINTENANCE LOAN MAXIMUM LEVELS 2015/16 £ £ £ Parental Home Live at home while they study Elsewhere Live away from home & study outside London London Live away from home & study in London i If studying overseas as part of a UK course, Maintenance Loan support is still available; up to £6,820 for 2015/16.

  12. MAINTENANCE LOAN MAXIMUM LEVELS 2015/16 *Lower rates are available to final year students i Additional loan may be available for any extra weeks of study if a course goes beyond 30 weeks in an academic year.

  13. MAINTENANCE GRANT SUPPORT AND MEANS TESTING • The Maintenance Grant doesn’t have to be repaid. • How much grant a student gets depends on their household income (100% means tested). Household Income: Up to £25,000 Full Grant: £3,387 Household Income: Up to £42,620 Partial Grant: (Min £50) i Household income is the taxable earned and unearned income of the parents/partner a student lives with most of the time.

  14. SUPPORTING AN APPLICATION HOUSEHOLD INCOME • If supporting an application for means tested student finance, SFE will • need details of a student’s parents’ or other sponsor’s household (taxable) • income and National Insurance numbers. • Taxable 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 • Taxable unearned income includes*: • interest from savings (only the annual summary is required) • benefits and pensions • rent from property or a room i *More details/information can be found on the HMRC website: http://www.hmrc.gov.uk/incometax/taxable-income.htm

  15. COMBINED MAINTENANCE SUPPORT LIVING AWAY FROM HOME OUTSIDE LONDON i The calculator found on gov.uk/studentfinancecanprovide an estimate of student finance entitlement.

  16. Tuition Fee Loan EXTRA Support SECTION TITLE IN HERE SUBHEADER IN HERE SECTION 3 Student Finance Package Maintenance Support

  17. EXTRA SUPPORT BURSARIES AND 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 discounted tuition fees, accommodation or cash • Scholarships: • linked to academic results or ability in an area such as sport or music • can be subject specific and are usually limited in numbers i Students should check university/college websites and ask at open days to see what they offer and how/when apply.

  18. ADDITIONAL SUPPORT EXTRA SUPPORT EXTRA HELP MAY ALSO BE AVAILABLE IF STUDENTS…. • have children or an adult dependent on them • have a disability, long-term health condition, mental-health condition • or specific learning difficulty • study overseas as part of their UK-based course • 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 i For more information on eligibility and applications for NHS support go to: www.nhsbsa.nhs.uk/students

  19. APPLICATIONS & INFORMATION SECTION 2

  20. Students APPLY on time They get PAID! Apply Online We ASSESS their application

  21. HOW MUCH DO YOU KNOW? STUDENT FINANCE APPLICATIONS a) Call SFE and ask for an application form to be sent out b) Online @ www.gov.co.uk/studentfinance c) Apply? Doesn’t the money just appear when they need it?! a) After they have started their course b) When they have a confirmed offer from a university or college c) As soon as possible A A Q Q c) As soon as possible b) Online @ www.gov.uk/studentfinance What is the easiest way for students to apply for their student finance (and for you to support their application)? When should students apply for their student finance?

  22. STUDENT FINANCE APPLICATIONS KEY MESSAGE – APPLY EARLY • Each year thousands of students apply late for their finance and have no • way to pay for their course or accommodation, some even have to drop out • ....don’t let that be your son or daughter! • It will take at least six weeks to process an application so encourage • them to apply earlyso their funding is ready for the start of their course. • Apply online at gov.uk/studentfinance* • Students don’t need a confirmed place at university or college to apply. • Apply with their first choice, they can change details later if necessary. *Students can register on UCAS and check the SFE websites for updates on when to apply for student finance. i

  23. GOV.UK FOR THE INFORMATION YOU NEED www.gov.uk/studentfinancesteps

  24. STUDENT FINANCE APPLICATIONS KEY MESSAGE – COMPLETING AN APPLICATION • Before starting an application students should have the following to hand: • • passport – SFE can check identity using valid UK passport details • • university and course details • bank account details and National Insurance number • The easiest way for parents, partners or other sponsors to support an • application is online through GOV.UK, providing information including: • • National Insurance number(s) • household income information (based on prior tax year*) • details of other child dependants *If your household income drops by 15% or more in the current tax year, SFE can reassess an application. i

  25. SFE ONLINE FOR MORE INFORMATION AND RESOURCES www.youtube.com/SFEFILM www.twitter.com/sf_england www.facebook.com/SFEngland www.thestudentroom.co.uk/studentfinance

  26. STUDENT LOAN REPAYMENTS SECTION 3

  27. The FACTS The INTEREST SECTION TITLE IN HERE SUBHEADER IN HERE SECTION 3 Student Loan Repayments The FIGURES

  28. HOW MUCH DO YOU KNOW? STUDENT LOAN REPAYMENTS – UNMANAGEABLE? A A Q Q a) Their future income b) How much they have borrowed c) Neither, they just pay a fixed amount regardless a) £16,000 a year b) £21,000 a year c) Doesn’t matter, repayments will be taken whatever they earn a) Their future income b) £21,000 a year How much do students need to earn before they start to repay? What are a student’s loan repayments based on?

  29. COMMON CONCERNS HOW MUCH DO YOU KNOW? STUDENT LOANS – COMMON CONCERNS A ! ? If my child can’t afford to repay their loan then I’ll have to foot the bill!?! Will student loans have an affect on an application for loans or credit in the future? A Student loans are the sole responsibility of the student who takes them out Student loans are unsecured government lending and are very different to commercial loans. They don’t go on credit files or show up on credit checks

  30. HOW MUCH DO YOU KNOW? STUDENT LOANS – COMMON CONCERNS A i ? Will a student loan impact on getting a mortgage? Student loan repayments now have to be included as ‘committed expenditure’ in mortgage applications While this may effect how much a graduate can borrow, it doesn’t mean they can’t or won’t be able to successfully secure a mortgage i Further information can be found on the Council of Mortgage Lenders website – www.cml.org.uk

  31. STUDENT LOAN REPAYMENTS AN OVERVIEW • Students won’t make repayments until their income is • over £21,000 a year gross (before tax). • If they study a full-time course, students will be due to start repaying • in the April after graduating from/leaving higher education. • They’ll repay 9% of their income over £21,000 and if employed, deductions will be made from their pay through the HMRC tax system.* • If their income falls to £21,000 or below their repayments will stop. • Any outstanding loan balance will be written off 30 years after entering repayment. i *If they move/work overseas they will repay 9% of any earnings over the repayment threshold for the country they are living in.

  32. STUDENT LOAN REPAYMENTS THE FIGURES £4,000 9% Deducted from? Income £25,000 £30 Monthly Repayment? i Early repayments can be made at any time (with no penalty) if a student wants to reduce their loan balance early.

  33. STUDENT LOAN REPAYMENTS THE INTEREST Interest levels will depend on a student’s income and circumstances: i • Interest rate is: • Set at RPI Only Interest Rate: Retail Price Index +3% Income: Under £21,000 Income: £21,000 to £41,000 Income: Over £41,000 Interest Rate: RPI Only Interest Rate: RPI + up to 3% Interest Rate: RPI +3% During study until entering repayment The interest rate is updated once a year using the RPI figure from March which is carried forward and applied in September.

  34. MONEY MANAGEMENT SECTION 4

  35. Consider the COSTS Points to REMEMBER SECTION TITLE IN HERE SUBHEADER IN HERE SECTION 3 Money Management Plan a BUDGET

  36. MONEY MANAGEMENT CONSIDER THE COSTS • Before starting in higher education, it’s important students think about the • costs they are likely to face and how to manage their money. • Students need to remember they get their maintenance support payments • each term and will need to pay for things like: • books and other study materials • accommodation, food and drink • sports, leisure and social activities • There will also be other costs they may not have thought of yet such as • insurance or a TV Licence...so they should think about planning a budget!

  37. MONEY MANAGEMENT HOW MUCH? ? ? Q Q How much is an NUS Extra card? How much does this textbook cost? ? Used £15.76 New £26.99 1 Year £12 3 Year £32 ?

  38. MONEY MANAGEMENT HOW MUCH? ? ? ? ? Q Q What is the average weekly cost of student accommodation? And for some flavour.....This jar of tasty sauce costs? And unless they want to eat it cold..... ...one of these might be useful! How much is this bag of pasta? From £2.25 29p 39p £118.49 *Figures from NUS based on university-owned accommodation (including privately owned student accommodation = £123.96)

  39. KEY MESSAGES KEY MESSAGES POINTS FOR STUDENTS TO REMEMBER • Important to make the right university/college and course choice!! • Tuition Fee Loans are available to all eligible students. • Future repayments are linked to a student’s income, not what they owe! • Research all finance available – especially bursaries & scholarships. • Apply online & on time – no need to wait for a confirmed place. • Check all details are correct before submitting an application.

  40. QUESTIONS OR COMMENTS? IF YOU ARE UNSURE PLEASE ASK!

  41. i NEED MORE INFORMATION? REMEMBER SFE IS ONLINE 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 i

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