Student Finance 2012

1. Student Finance 2012 Jonathan Tinnacher Head of Student Recruitment University of Leicester

2. Student Finance • Financial support available for UK and eligible EU students from 2012/13 onwards • Financial support from the University of Leicester • The impact on students’ families

3. Financial Support

4. Financial Support - Tuition Fees • Tuition fee loan • Will cover the full cost of tuition (up to £9,000 per year) • Paid from Student Finance England directly to the university • Nothing to be paid up front

5. Tuition Fees – Special cases at Leicester • Erasmus year – £1,250 • Year in industry – £1,000 • M Level degree final year – £7,000

6. Financial Support - Living costs • Maintenance loan and grant • Means-tested based on household income • Paid by Student Finance England to the student • Larger loans for studying in London • Smaller loans for living at home whilst studying

7. Financial Support - Living costs

8. Loan Repayments • No repayments until you are earning above £21,000 • Repayment = 9% of income above £21,000 • All outstanding repayments will be written off after 30 years • New graduates will pay less per month than they would have done under the current system

9. Loan Repayments - Examples

10. Repayment - Interest Rates

11. Financial Support – University of Leicester • Chancellor’s Scholarship • £2,000 off tuition fees each year • AAA at A-level or equivalent • Departmental Scholarship • £1,250 off tuition fees each year • Varying academic criteria

12. Financial Support – University of Leicester • National Scholarship Programme • £2,000 off tuition fees and £1,000 cash each year • Family income below £25K • Other criteria: academic achievement set against school background and postcode data

13. Financial Support – University of Leicester • CULN Scholarships • £1,000 cash for the first year of study • Individual colleges to determine criteria and identify students

14. Financial Support – University of Leicester • Access to Learning Fund • Must have taken out full available funding • Available when income does not match legitimate expenditure, e.g. • Travel • Childcare • Accommodation • General living costs • Books/stationery etc. • Fieldwork

15. Further Support – University of Leicester • Advice and support with budgeting • Part-time work • Support for Care-leavers

16. Impact on Families - Concerns over Fees • Difficult to see past the cost – parents/carers worried about the implications of tuition fees • But… no up-front costs – loan covers full tuition fees • Costs are paid by graduates, not students or their families • Repayments only begin once a graduate is earning above £21,000 – and are affordable • Not a commercial loan (credit rating, bad debt…)

17. Impact on Families - Paying up Front? • Over 3-4 years of study, this could amount to a lump sum up to £36,000 • Could this be better spent on something else? • Similar situation with regards to early repayment of student loans

18. Impact on Families - Bank of Mum & Dad™ • Structure of maintenance loans and grants places an expectation on wealthier families to contribute more towards living costs • Parents/carers don’t want to be bankrolling 3 years of full living expenses even if they can afford to! • Parents/carers should feel comfortable for students to take out the loans and partially/completely pay their own way - encourage financial responsibility

19. Impact on Families - The Big Picture • Going to university for the right reasons • Should not be put off by higher fees • “An investment in your future…” • making the most of time at University • mot just about getting a degree • employability skills, job prospects

20. Further information www.le.ac.uk/fees yourfuture.direct.gov.uk