Student Finance: The Basics

Transcription

1 Student Finance: The Basics

2 Overview Expenses fall broadly into two categories: Tuition costs lecturers and academics Library and IT Practical activities (labs) and facilities Does not usually cover fieldtrips Living costs Accommodation Food Travel Course books etc.

3 Tuition Fees: 2015 Entry Universities charge up to 9000 per year UCS fees: 9000 BA/BSc 8000 Foundation degrees All students can take out a tuition fee loan Tuition fee loans are paid directly to the University Some courses are funded by the NHS You apply from the December before you start

4 NHS Funded Courses The NHS will pay the tuition fees for some courses, and provide a means-tested bursary. Nursing and Midwifery Physiotherapy Radiography/Radiotherapy Speech and Language Therapy Dental Hygiene Maintenance loan of 2324 maximum per year for NHS students living away from home (the remainder is made up via the bursary) Social Work students pay tuition fees but some can access a bursary

5 Bursary for NHS students Household income Bursary Home ( ) Bursary Away ( ) Below 25,000 3,691 4,455 30,000 3,164 3,928 35,000 2,638 3,402 40,000 2,112 2,876 45,000 1,585 2,349 50,000 1,059 1,823 55,000 1,000 1,297 60,000+ 1,000 1,000

6 Living Costs: Maintenance Loans All students are entitled to 65% of the loan. The remaining 35% is means-tested. Maximum maintenance loans for students starting University in 2015: Student living at home: 4565 Student living away from home: 5740

7 Living Costs: Maintenance Grant Non-repayable Means-tested Up to 25,000 you will get a full grant of 3387 then on a sliding scale to 42,620 (no grant)

8 Household Income Total Maintenance Support 2015 Entry Maintenance Loan Maintenance Total Home Away Grant Home Away < 25, , , , , , , , , , Over 62,

9 Assessed Contribution ( parental contribution ) Household Income Assessed Contribution Total Home Away Home Away < 42, , , , , , Over 62, You pay it directly to your child (should you wish!) The household income reduces by 1130 for every additional child financially dependent on the parent(s) Split by the number of children in HE at the time and loan makes up the difference.

10 Repayment of Loans Tuition fee loans and maintenance loans are combined Repayment is 9% of earnings above 21,000 and payments are taken directly from the salary via the tax system. Graduates start repaying the loans from the April after graduation if they are earning over 21,000 per year Any remaining loan is written-off after 30 years Annual Salary Monthly salary after tax Monthly Repayments 21, , , ,

11 Interest Rates Interest rates will be applied to the loans and they change according to what you earn: While studying: RPI + 3% After graduation, salary up to 21,000: RPI Salary of 21,000-42,000: RPI + up to 3% Salary of > 42,000: RPI + 3% No early repayment charge

12 Other Support Disabled Students Allowance: Maximum support 5212 (if helper required, maximum is 20,725) per year. Adult Dependent s Grant: For students with an adult member of the family who is financially dependent on them Access to Learning Fund UCS Bursary: For students who meet eligibility criteria up to 1000 in year 1, and 500 in years 2&3 Care Leavers Bursary: Students who live, or have lived, in local authority care will be eligible to apply for a bursary of 500 for each year

13 Is It Worth It? Debt of up to????! Is it worth it? Graduates earn an average of 220,000 more in their lifetime than non-graduates Average starting salary for graduates: 20,000 Average starting salary non-graduates: 11,000 Graduates: Greater career flexibility Less likely to be unemployed and would spend less time unemployed A degree opens the door to a wide range of employment opportunities BUT: You have to take opportunities at university to expand your experience and skills and to make yourself more employable

14 Did you learn anything? Who can get a student loan? What support does not have to be paid back? How often do you have to apply for your student support? What happens if you don t apply for student support? How long do you have to repay your loan? How much will you repay on a salary of 25,000? What happens to your student loan if you never have a salary over 21,000?

15 Tuition fees have put some people off applying to University

16 BUT all students starting their first degree are eligible for a tuition fee loan

17 And a maintenance loan of up to 5,740

18 The NHS pay the fees for some courses such as nursing, midwifery, radiography and radiotherapy. You might even get a bursary

19 You will not pay back a penny until you earn over 21,000 and if you stop earning you stop paying

20 If you had 44,220 as a loan amount after finishing your degree and earned 25k for 5 years 30k for 10 years and 35k for 15 years you would have the remaining 15,420 wiped out

21 These loans do not affect your credit rating or your ability to get a mortgage.

22 You do not have to pay back grants or bursaries If you live with your parents and their combined income is under 42,620 you will be eligible for 3,387 grant and a UCS bursary of 1,000

23 Thank you for listening! Next open day: July