Student Finance 2014/15

Transcription

1 Student Finance 2014/15

2 An Overview of Student Finance Tuition fees and tuition fee loans Maintenance loans Maintenance grants National Scholarship Programme Bursaries, scholarships & hardship funds Supplementary income Scotland, Wales and Northern Ireland European universities Useful websites

3 Tuition Fees & Tuition Fee Loan From September 2012 universities have been able to charge tuition fees of between 6000 and 9000 per year the average tuition fee for 2012 was 8389 Tuition Fees can be paid upfront, in part or back early without a redemption fee otherwise it is best viewed as a graduate contribution not a fee A non means-tested tuition fee loan is available to all students via SFE An interest rate at inflation (RPI currently 3.3%) and 3% will be charged while you are studying and up until the April after you leave university From the April after you leave university, interest will be charged at RPI for graduates earning less than ; between RPI and RPI + 3% for graduates earning between and ; and RPI + 3% for students earning above Tuition fee loans are repaid through the tax system once the graduate is earning over pa A graduate would repay 9% of any earnings over e.g = x 9% = 360 per annum or 30 per month ( 1 per day) The system is progressive the more you earn the higher your monthly repayment First repayment in April after graduation Loans not repaid within 30 years are written off by SFE

4 The Bigger Picture Students can pay up front, in part or take out a tuition fee loan The introduction of a real rate of interest means that graduates can expect to pay back around twice as much as they borrow However, over the last ten years ( ) graduates earned on average more per year than nongraduates ( Furthermore, models suggest that the impact of increased earnings for graduates allied to the impact of yearon-year inflation over the course of the 30 years of repayment will go some way to negating the impact of the tuition fee loan ( (Paul Lewis BBC Money Box) And a very significant number of students will never pay back the full amount of their loan maybe as high as 40% Attending university remains a sound investment due to the relationship between the debt and overall earnings; although the terms of the investment are less generous than pre-2012 And the terms of tuition fee loans are far more generous than the terms of commercial loans

5 The Maintenance Loan Helps cover living costs and available through SFE All students are eligible for 65% of the maximum maintenance loan The remaining 35% of the maximum loan is means tested according to Residual Household Income RHI is total gross taxable income minus private pension plans and 1130 per dependent child As RHI increases (up to ) eligibility for the maximum loan increases; but eligibility for the maximum maintenance grant decreases (borrow more but given less) The maintenance loan is higher for students studying in London and lower for students living at home Maintenance loans are added on to tuition fee loans and repaid in the same way via the tax system

6 The Maintenance Grant Some students are eligible for a means-tested maintenance grant - a non-repayable substitute for part of the maintenance loan, available through SFE The maintenance grant is available for students with residual household incomes between and As RHI decreases eligibility for the maximum grant increases; however, eligibility for the maximum maintenance loan decreases (given more borrow less) If you are on state benefits your child will be eligible for a special support grant, which doesn t impact upon the maintenance loan.

7 Maintenance Grant & Loan Levels Student living away from home outside London 2013/14 Household Income Maintenance Grant Maintenance Loan Total 25,000 & under 3,354 3,823 7,177 30,000 2,416 4,292 6,708 35,000 1,478 4,761 6,239 40, ,230 5,770 42, ,475 5,225 42, ,500 5,500 50, ,788 4,788 60, ,788 3,788 62,125 & over 0 3,575 3,575

8 The National Scholarship Programme Applies to universities that have opted to charge tuition fees of over Focus on Widening Participation or Social Mobility Targeted at students with a combined household income of or less and eligibility for full grant Discount of tuition fees; accommodation fees; bursary etc. Each university has been granted a bespoke number of scholarships Each university is responsible for establishing the details of the individual scholarships, bursaries etc. Each student is responsible for researching individual university scholarships, bursaries etc. although contextual data will be shared via UCAS applications and in theory - students will be prompted regarding their eligibility Each student is responsible for applying to individual scholarships

9 The National Scholarship Programme Sheffield University 2013/14 Up to 392 first year fee waivers to home students from low income households who live in economically deprived areas (Sheffield University has been provisionally granted 392 full 3000 scholarships from HEFCE for 2013/14) A new bursary scheme awarding either a cash award or accommodation discount to UK families with household incomes up to ranging from

10 Bursaries, Scholarships and Hardship Funds Bursaries will still be available in all universities. These are non-repayable and under the 2011 system c students were eligible for bursaries. Scholarships will also available to support academic excellence these will especially target students who achieve ABB from 2012/2013 Universities will also provide hardship funds Additional financial support can be received from charities, educational trusts and professional bodies

11 Supplementary Income Part time work during term time (not Oxbridge) and/or during holidays Students should aim to earn within the student tax threshold of 8105 If you are working now take your P45 to university to prevent being put on emergency tax If earning within the student tax threshold complete a P385 and give it to your employer Complete an R85 and give it to your bank or building society so that you are not taxed on your savings

12 Scotland, Wales and Northern Ireland Tuition fees are likely to be subsidised for students who are permanent residents in Scotland, Wales or Northern Ireland Students from England studying in these countries are likely to be charged higher tuition fees than those who are resident and these are likely to be between 6000 and 9000

13 European Universities In 2011 Maastricht University experienced a tenfold increase in the number of applications from UK students (c400) tuition fees are 1526 contra 3240 ( 9000) In 2010 it took 106 undergraduates from the UK At the University of Southern Denmark in Odense there are currently around 30 UK students tuition fees are free In Ireland tuition fees are currently 2000 Courses are taught in English at universities in the Netherlands, Scandinavia, Ireland, Germany, Italy, France and Luxembourg however, some require an A level in a MFL

14 Useful Websites etc. for information of tuition fees, tuition fee loans, maintenance loans, maintenance grants and special support grants Student Finance England for information on bursaries and scholarships from July/August/September The Educational Grants Directory for information of support from charities, educational trusts and professional bodies for tax advice and downloadable forms