STUDENT FINANCE MATTERS

1. STUDENT FINANCE MATTERS

2. 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

3. ! COMMON CONCERNS

4. ! 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

5. ! 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.

6. i STUDENT FINANCE ENGLAND

7. i STUDENT FINANCE ENGLAND • Student Finance England (SFE) 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).

8. SECTION 1 THE STUDENT FINANCE PACKAGE

9. 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

10. SECTION 1 TUITION FEES & LOANS

11. 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 HEIs). • Tuition Fee Loan doesn’t depend on household income. • SFE 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

12. SECTION 1 MAINTENANCE SUPPORT

13. 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 get 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.

14. 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.

15. 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

16. 1 SUPPORTING AN APPLICATION HOUSEHOLD INCOME • If you’ll 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 • (NI) 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, SFE verify income from your NI number with no need to send any documents, unless we ask for them.

17. 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

18. SECTION 1 BURSARIES & SCHOLARSHIPS

19. 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.

20. SECTION 1 ADDITIONAL SUPPORT

21. 1 ADDITIONAL SUPPORT ADDITIONAL SUPPORT • Extra support may be available to students who: • have a child or an adult who depends on them financially • 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

22. SECTION 2 STUDENT LOAN REPAYMENTS

23. 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 higher-education 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.

24. 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.

25. 2 STUDENT LOAN REPAYMENTS THE FIGURES More information on loan repayments and interest rates can be found on www.studentloanrepayment.co.uk

26. SECTION 3 APPLICATIONS & INFORMATION

27. 3 STUDENT FINANCE APPLICATIONS KEY MESSAGES FOR STUDENTS – APPLY EARLY • Each year thousands of students apply late for their finance and • have no way to pay for their course or halls, 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 apply early! • Apply online now at gov.uk/studentfinance to make sure that student finance is in place for the start of their course. • Students don’t need a confirmed place at university or college to apply • for student finance. • Apply with their first choice, they can change details later if they need to. *SFE handle over 1 million applications a year, most involve interactions with other government departments, e.g. HMRC

28. 3 STUDENT FINANCE APPLICATIONS APPLICATION DATES - NEW STUDENTS Jan Student finance applications can be made from 20 January 2014* 20th May The application deadline for new students is 30 May 2014 30th *Returning students should wait to hear from SFE before re-applying for their finance

29. 3 GOV.UK FOR MORE INFORMATION & TO APPLY www.gov.uk/studentfinance

30. 3 STUDENT FINANCE APPLICATIONS KEY MESSAGES – GET IT RIGHT FIRST TIME • Make a note of their account log-in details and keep them safe. • Agree to share information from your application, this helps apply • for many bursaries and some scholarships. • Make sure any evidence and information needed to support an • application is supplied first time (students and parent/partners’). • Submit an application even if there is a delay in getting income details from parents/sponsors so some funding (Tuition and Maintenance Loan) will be available when they start their course. • If SFE request any additional evidence or documents to support the application use recorded delivery!

31. 3 STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - COMPLETING AN APPLICATION Before starting the application, students should have the following to hand: • passport - SFE 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 student’s application you will need to set up your own account on GOV.UK and provide information including: • National Insurance number(s), household income (from prior tax year) and details of other child dependent’s

32. SECTION 4 MONEY MANAGEMENT

33. 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’re at university • or college, staff there will be able to help.

34. i KEY MESSAGES KEY MESSAGES POINTS TO BE CLEAR ON • Important to make the right university/college and course choice!! • Tuition Fee Loans are available to all eligible students and future • repayments are linked to a students income, not what they owe • Research all finance available – especially bursaries & scholarships • Apply on-line & on time – no need to wait for a confirmed place • Application deadline for new students 30th May 2014!! • Check all details are correct before submitting an application Student Finance Matters... Apply Now!! And remember that....

35. ? QUESTIONS & COMMENTS

36. 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