Introduction to. Student finance PTO. Teachers information

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2 Funding arrangements for students entering Higher Education are extremely complex. Recent changes to the cost of tuition fees have lead to different financial support packages being offered at universities across the country (this is in addition to the loans and grants available from the Student Finance England). When researching their choice of university and course, students should take time to explore the various bursary and scholarship schemes them. This chapter aims to provide a straightforward introduction to student finance, both the re-payable and non-repayable monies, reviewing the re-payment structure and explaining the key terminology associated with student funding. Financial support summary Costs Living costs Amounts can vary depending on a student s personal choices. Tuition fees moun Repaid Student Maintenance Loan Varying amounts, Means-Tested. Tuition Fee Loan Non Means-Tested, can borrow the full amount to cover course fee costs. Free Free Scholarships Vary between universities. Money that is awarded to a student for achievement (usually academic). Maintenance Grants Up to a year. Means tested. Bursaries Vary between universities. Money that a student qualifies for.

3 cont d... developments recently undertaken significant changes. Beginning in 2009 with the formation of a new rand Student Finance England (the result of a partnership between the Student Loans Company and the Department for Innovation, Universities and Skills). Applications saw a shift from paper to online applications, faster form turnaround times and perhaps, most notably, the removal of the local authorities from the process. All forms are now sent to Student Finance England s centralised offices in Darlington. The local authorities will continue to work alongside returning students but it is anticipated that full responsibility will be given to Student Finance England by March During this transitional period they have been introducing fundamental new elements to the system which will support students as they continue to apply and help them to navigate the online form. Details of these proposed changes can be seen in the table below. Key changes to applications for 2009 onwards Previous years 2009 onwards Predominately a paper application form Information, advice and guidance provided by local authorities Once registered students generated an Art ID number Form consisted of several sections, not all relevant to each and every student Form required repetition of information already supplied to UCAS Applications made to local authorities Students had to send evidence of their identity to the local authorities to verify Local authorities determined eligibility Six week form processing turnaround Information, advice and guidance supplied by telephone and Predominately online applications, schools will be limited to just ten paper copies each, although additional copies can be requested by individual students if required Information, advice and guidance provided by Student Finance England Once registered students will generate a Customer Reference Number (CRN) Online form automatically removes sections not relevant to the applicant using the information that they have already input Online forms have data sharing facilities with UCAS allowing students to drag personal details and course/institution details from their UCAS form Applications now made to Student Finance England s centralised office Students can now enter their passport number into their application forms; this information is passed to the IPS for verification, eliminating the need to send the document itself. If a student wishes to use their birth certificate they must send this to Student Finance England to be verified Student Finance England determine eligibility Four week form processing turnaround Information, advice and guidance supplied by telephone, and live webchats

4 cont d... Proposed future developments Ability to apply for finance from September onwards, aligning with UCAS applications Interactive student finance calculator Further integration with UCAS and more developments for data sharing opportunities Text messaging service for updates and information Whilst these changes may at first appear daunting they will inevitably allow finance applications to become a smoother, quicker process. Alongside the changes to applications there have also been significant alterations made to other areas of student finance. 1) reduction of the household income brackets which determine eligibility for the Means-Tested Grant (and subsequently many bursaries and parts of the Student Maintenance Loan). At the end of 2008 it was announced that in order for a student to qualify for a variable Means-Tested Grant their household income should be between 25,000-,0 (below 25,000 the student is eligible for full grant support) and not the 25,000-0,020 as initially stated. 2) In conjunction with this there has been a drop in the amount of non means-tested Student Maintenance Loan available. Whereas before 75% of this loan was non means-tested this has been altered to 72%. 3) Finally, financial support will now be assessed using earnings from the previous tax year. For example, students planning to begin a course in 2011/12 will use information from the 2009/10 tax year. During today s difficult economic climate many families circumstances may have altered since the last tax year, in which case they can request that they are assessed using their current salary information. Background information Due to recent Government changes in the amount of tuition fees payable, universities are required to help financially support their students by offering bursary and scholarship schemes. Both are non-repayable awards and are designed to supplement a student s income and support their study costs. In general a bursary is a sum of money that a student can qualify for perhaps based on the location of their home postcode or related to the amount of Maintenance Grant that they are due to receive. To date there are over 300 separate bursary systems in operation with awards ranging from Students are strongly advised to research and consider the financial support being offered to them at their potential universities. A scholarship is a monetary award for a student s academic achievements, potentially prior to and during their university careers. Universities may award more money in certain subject areas in order to attract the highest calibre of applicants. As there are no set rules regarding the distribution of this money, universities will vary dramatically in the sums being offered and the criteria set in order to receive them. Therefore, students are advised to research further into the financial packages of their favourite institutions. Key information to note Students applying to NHS-funded courses be eligible for different financial support and full details can be found on the NHS website nhspa.gov.uk/sgu Funding arrangements for English students wishing to study in Scotland are different and should be researched separately. The same will apply for Scottish students wishing to study in England direct.gov.uk/studentfinance The thresholds that determine the levels of Maintenance Grant and Student Maintenance loan that a student can receive have been altered, allowing more students to receive the maximum amounts or qualify for a higher level of support direct.gov.uk/studentfinance Students who subsequently change their choice of university, course or go through the Clearing process can easily adapt their application by phoning Student Finance England with their new details.

5 Support for staff In order for schools and colleges to implement these changes Student Finance England have designed numerous support resources. It is worth noting that these are intended specifically for staff providing information, advice and guidance, separate information is available for applicants and their families (see student worksheet). W:practitioners.studentfinanceengland.co.uk E: T: k Paper: Practitioners Pack Customer Information Pack (CIP) Supporting materials Type of activity: Presentation Year group: Year 13 Resources: PowerPoint Presentation Time required: minutes Type of activity: Handout and Worksheet Year group: Year 13 Resources: Handout and worksheet. Some flipchart paper and pens may be useful Time required: 45 minutes with 15 minutes to feedback