Student Finance (for a September 2013 start)

1. Student Finance(for a September 2013 start)

2. The costs of going to university • Fees for the course • Somewhere to live • Living expenses (food, drink, heat, light) • Social expenses (more food, more drink?) • Books and course expenses • Extras (travel, holidays, hobbies, phones)

3. What Financial Help is There? Tuition Fee Loan – for everyone Maintenance Loan – for everyone Grant University Bursaries and Scholarships National Scholarship Scheme Part-time jobs

5. Tuition Fees Following recent legislation all Universities will be allowed to charge fees of up to £6,000 per year Universities wishing to charge more can charge up to £9,000 per year if they agree to do more work on student outreach and fair access

6. Paying Tuition Fees • Fees do not have to be paid upfront • Everyone is entitled to have their fees paid for them in the form of a government loan • Paying back fees is the responsibility of the graduate – not his/her parents/spouse

7. Tuition Fee Loan paid by Student Loans Company direct to University or College no age limit not means-tested not compulsory: students can also pay full Fees themselves; or pay part of the Fees and take out a Tuition Fee Loan for the rest

8. Living Costs Loan Maintenance loans will be available to all eligible full time students  irrespective of income or degree course. The maximum loans available are Living away from home studying in London £7,675 Living away from home studying outside London £5,500 Living in parent’s home £4,375 Can apply for student loans from 4 February 2013 To get your money in time for the start of the 2013 to 2014 academic year you must apply by: 31 May 2013 - new full-time students

9. Loan Repayment • Loan pay back starts once you have left or finished your course and are earning at least £21,000 a year • pay back starts from the April after graduation • monthly payments are 9% of wages over £21,000 • E.g. £25,000 per year – repay 9% of £4,000 = weekly loan repayment of £6.92 or £27.68 per month from monthly salary of £2,083

10. Loan repayment

11. Loan Repayment • appears as a deduction on your payslip • interest rate is kept in line with inflation + up to 3% interest and is charged from when the loan is taken out to when it is paid in full. • any loan outstanding after 30 years from when you leave your course will be written off • You can make lump-sum repayments – but there will be a charge or penalty for this

12. Loan Facts • If you stop work you won’t pay until you are again earning over £21,000 again • A student loan should not count against you if you want a mortgage or car loan – lenders will look at income after all deductions not student debt • Parents have no responsibility for loans

13. The Living Cost Grant Is a grant of up to £3,250 per year for students from families with incomes of less than £42,600 means-tested on household income: £25,000 or less – will qualify for a full Grant £25,000 - £42,600 – will qualify for a partial Grant over £42,600 – no Grant You do not have to pay the grant back If a grant is payable the amount of loan available is reduced

14. Support for living costs – living away from home and outside London in 2013

15. The National Scholarship Programme • Additional support will be available students from families from “disadvantaged” backgrounds • Details of the scheme will be determined by each university so applicants will need to check who is eligible and forwhat benefits– will be worth a minimum of £3000 • Government examples suggest benefits might include: Discounted course costs in year 1 Free foundation year leading to a professional course Financial scholarship/bursary with a maximum £1,000

16. Reading Uni Scholarship Programme

17. Points to Remember • Loans to pay fees and living expenses - repayable • Grants – non-repayable and based on family income • Bursaries/scholarships - non-repayable and based on family income and other factors • Part time work - a good way to make money before university and while at university

18. Other Support Available • Bursaries and Scholarships paid by individual Universities – some but not all will be income assessed – check university websites/UCAS website • Disabled Student Allowances – not income assessed and payable according to an assessment of the extra costs incurred • Care Leaver’s Bursary – from local Authority

19. Budgeting tips from students “Get a job” e.g. on campus or perhaps a transferrable bank or supermarket job – term time and vacation opportunities “Shop and cook together with your friends” “Buy a bus pass” “Buy cheaper brands” “Be sensible with your overdraft” “Open a student account with a train discount card”

20. So is it worth it? • Vast majority of students say a “Good Investment” • Graduates earn more on average • The non-graduate “wall” - you can only go so far without a degree in many job areas • New opportunities

21. Student finance information • https://www.gov.uk/student-finance • http://www.moneysavingexpert.com/students/