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

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. ! COMMON CONCERNS COMMON CONCERNS GENERAL What effect will student loans have on applications for mortgages or other loans/credit in the future? If my child can’t afford to repay their loan then I’ll have to foot the bill!?! i i ! ! 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

7. i STUDENT FINANCE ENGLAND

8. i STUDENT FINANCE ENGLAND • 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)

9. SECTION 1 THE STUDENT FINANCE PACKAGE

10. 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 Figures used in this section may change, subject to 2014/15 policy approval

11. SECTION 1 TUITION FEES & LOANS

12. 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 HEI’s) • Tuition Fee Loan doesn’t depend on household income • SLC pay any Tuition Fee Loan directly to a university or college • The loan is repayable, but only when the student’s income is • over £21,000 a year *Publicly funded institutions

13. SECTION 1 MAINTENANCE SUPPORT

14. 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 receive 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

15. 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

16. 1 MAINTENANCE LOAN MEANS TESTING *Slightly lower rates of support apply to final year students

17. 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 2014/15: Household Income: Up to £25,000 Full Grant of £3,387 Household Income: Up to £42,620 Partial Grant

18. 1 SUPPORTING AN APPLICATION HOUSEHOLD INCOME • If you will 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 • 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, SLC verify income from these NI numbers with no need to send any documents, unless we ask for them

19. 1 SUPPORTING AN APPLICATION TAX YEAR USED FOR ASSESSMENTS • Please give financial information for the tax year prior to when the student • will start in higher education • For students starting in Sept 2014 please submit financial information • for the 2012/13 tax year • Supporting an application – Drop in income: • If your income has dropped by 15% or more in the current tax year SFE • can reassess an application so a student may receive additional support • Submitting a Current Year Income form: • Support the student's application for finance as normal • Complete the (CYI) form with estimates of this financial year's details • Provide evidence to support estimates at the end of the current tax year

20. 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

21. SECTION 1 BURSARIES & SCHOLARSHIPS

22. 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 and scholarships

23. SECTION 1 ADDITIONAL SUPPORT

24. 1 ADDITIONAL SUPPORT ADDITIONAL SUPPORT • Extra support may be available to students who: • Have children or adults dependent on them • 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

25. SECTION 2 STUDENT LOAN REPAYMENTS

26. 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 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

27. 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

28. 2 STUDENT LOAN REPAYMENTS THE FIGURES More information on loan repayments and interest rates can be found on: www.studentloanrepayment.co.uk

29. SECTION 3 APPLICATIONS & INFORMATION

30. 3 STUDENT LOAN APPLICATIONS STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - KEY MESSAGES • Apply online at gov.uk/studentfinance as soon as possible to make • sure their student finance is in place for the start of their course • Make a note of their account log-in details & keep them safe • Students do not need a confirmed place at university or college • to apply for student finance • They can change most details online before starting their course • Agree to share information from their application, this helps apply • for many bursaries and some scholarships

31. 3 STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - COMPLETING AN APPLICATION Before starting the application, students should have the following to hand: • Passport - SLC 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 students application you will need to set up your own account on GOV.UK and provide information including: • National Insurance number(s), household income, details of other child dependent’s If you can’t submit your income details online, send a photocopy of evidence including: P60, Pay slips, Tax return, or Pensions

32. 3 GOV.UK FOR MORE INFORMATION & TO APPLY www.gov.uk/studentfinance

33. 3 UNISTATS COMPARE UNI’S COURSES AND FEES www.unistats.direct.gov.uk

34. SECTION 4 MONEY MANAGEMENT

35. 4 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 • A student will receive their maintenance support in termly payments • and will need to budget 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

36. ? HOW MUCH? MONEY MANAGEMENT HOW MUCH? How much does this textbook cost? Q Q £35.95 New £16.00 Used How much is a 16-25 Railcard? (Amazon) £30 for 1 yr £70 for 3 yrs Studying in London? An 18+ Student Oyster card can save you 30% on Bus, Tram & Travelcard prices

37. ? HOW MUCH? MONEY MANAGEMENT HOW MUCH? What is the average weekly cost of student accommodation? £117 per week* Q Q How much are these ‘delicious’ noodles? 11p *Approximate figures from NUS & The Guardian, based on university owned accommodation

38. 4 MONEY MANAGEMENT HINTS & TIPS TO CONSIDER • Plan a budget – and (try to) stick to it! • Ask questions and get any advice they need – from teachers or advisers, current students, university or college staff • Check out student bank accounts and NUS Extra cards • Try to avoid taking credit cards, store cards or pay day loans!! • Be aware of phishing scams – protect their information!! • If they should need financial support and advice once at university • or college, staff there will be able to help

39. i KEY MESSAGES KEY MESSAGES POINTS TO BE CLEAR ON • Important to make the right university and course choice!! • Tuition fee support is available to all eligible students and future • repayments are linked to what a student earns, not what they owe • A student loan will not be recorded on a credit file so is unlikely to impact the ability to access future loans, credit or mortgages • Research all finance available – especially bursaries & scholarships • Apply on-line & on time – no need to wait for a confirmed place • And remember that….. Student Finance Matters

40. ? QUESTIONS & COMMENTS

41. 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