STUDENT FINANCE FEES & FUNDING. Helen Smith Outreach Specialist

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1 STUDENT FINANCE FEES & FUNDING Helen Smith Outreach Specialist

2 Aims of this session Up to date information regarding student finance for 2013 entry Know how to calculate the funding you are likely to receive Gain information on the repayment of the loans Know where to go for more information

3 A degree can be invaluable Some careers are degree entry only Gain further knowledge and expertise in subject areas you have chosen to study Gain transferable skills through study and activities in your free time Enhanced job prospects and greater earning potential

4 Graduate vs. non-graduate salary Subject Graduate salary Non-graduate salary Economics 25,637 16,249 Mechanical Engineering 24,337 14,764 Psychology 18,173 14,118 Architecture 17,873 14,526 Environmental Science 19,844 14,686 Mathematics 23,160 15,807 Business Studies 21,007 15,776 Social Work 24,630 15,669 Geology 21,182 13,950 Average 20,964 13,721 Source: The Complete University Guide 2011 What do graduates earn and do?

5 Addressing the myths Student loans are available to cover tuition fees and go towards your living costs (maintenance) There is also non-repayable financial help available When you start repaying your loan, monthly repayments are manageable as they are based on what you earn, not on what you owe After 30 years any remaining debt is written off "A student loan is very unlikely to impact materially on an individual's ability to get a mortgage but the amount of mortgage available may depend on net income. The Council for Mortgage Lenders via

6 Student support for 2013 Tuition fee loan Maintenance loan Repayable Non-repayable National Scholarship Programme and other support Maintenance grant Selected NHS courses offer different funding for tuition fees and maintenance

7 Tuition fees loan Tuition fees are the amount you pay to be taught and study at university Any university or college is able to set their fees at up to 9,000 per year of study It is up to the individual institution to decide what it charges The placement year may have lower tuition fee set, depending on the institution This is not paid upfront as the government will lend you the money to cover your tuition fees per year of study

8 Maintenance loan Maintenance loan will be available to all eligible full-time students, irrespective of household income For 2013 entry, everyone is entitled to borrow at least 65% of the loan The remaining 35% is means tested (income-assessed) on household income (gross income minus certain allowances such as pension contributions and charitable donations) Residence whilst at university 65% of loan (everyone entitled to) Entitled to more if household income is Parental home 2,843 Under 58,195 4,375 Elsewhere 3,575 Under 62,125 5,500 London 4,988 Under 69,745 7,675 Maximum maintenance loan available (2013)

9 Maintenance grant 2013 Non-repayable, maximum of 3,354 per year of study Income of 25,000 or less full grant Income between 25,000 and 42,611 partial grant ( 50-3,354) The maintenance grant is taken into consideration when allocating the maintenance loan to create an overall package: Household income Maintenance grant Maintenance loan 25,000 or less 3,354 3,823 7,177 30,000 2,416 4,292 6,708 40, ,230 5,770 50, ,788 4,788 Over 62, ,575 3,575 Yearly total (paid in 3 instalments) Based on the elsewhere rate

10 Other financial help The National Scholarships Programme has been introduced by the Government: Plymouth is provisionally awarding 3,000 in the first year of study to individuals from target groups through cash and campus support. Santander Scholarships: More than 50,000 will be available each year to undergraduates, postgraduates and staff for research in the UK and overseas for language exchange programmes, initiatives to promote volunteering, and the development of employability skills. Access to Learning funds, some of which has been made possible by the generosity of our alumni.

11 Other financial help Disabled Students Allowance available to students who will incur extra costs because of a disability: In addition to the standard student finance package Does not have to be repaid Looks at the specific needs of the individual in relation to their studies. Plymouth University will have bursaries and scholarships available: Care leavers bursary ( 2,000 a year) Drake gold and silver awards 150 new student scholarships to celebrate 150 years of education in Plymouth (to be awarded in a range of areas including academic excellence, extra-curricular achievement and hardship support).

12 Student Finance Calculator

13 Applying through Student Finance England Students apply through Students will be able to apply for financial support and maintain their account online The application opened for 2012 entry on Wednesday 14 December and closed on Thursday 31 May It is anticipated that students will be able to apply from January with a soft launch in December, for those students who have liked Student Finance England on Facebook Students can consent to have up to two people speak to Student Finance England on their behalf they must be registered first to do so

14 Applying through Student Finance England Students are encouraged to complete their application as early as possible There is no need to wait for a confirmed offer from a university/college Student can alter course or application details using the online change of circumstances process after submission Applications will be assessed by Student Finance England (4-6 weeks average) Students will then be informed of their financial entitlement and they must return their declaration form

15 Common mistakes! Sending in UK passports rather than providing a passport number (these need to be catalogued and delay the procedure) Sending in untraceable documents with no means of identification put your Customer Reference Number on it Only send in evidence if it is asked for Incorrect or incomplete application forms Late applications

16 Why are parents involved? Parents or partners may have to submit details if the student applies for income-assessed finance, such as the: Maintenance grant Higher level maintenance loan (35% is income-assessed in 2013/14) Income-assessed finance looks at the parents or partner s income and their circumstances, such as the number of other dependents they have For 2013/14 student finance applications, parents or partners submit income details for the 2011/12 tax year

17 Repaying the loans When? From April after leaving the course and earning over the threshold of 21,000 per year ( 21,000 earnings threshold to be up- rated annually in line with earnings with the first change being applied from 6 th April 2017) What? 9% of gross earnings (before tax) over threshold How? Deductions directly from wages, at same time as NI and tax Graduates will pay less per month than they do under the current system when starting out Salary Monthly repayment Weekly repayment 20, , , , ,

18 Repaying the loans If your earnings fall, your contributions fall You can repay early without financial penalties Debt written off after 30 years or you become disabled and cannot work Your debt is not passed on to anyone else Your situation Whilst you are studying (and up until the April after you leave your course Graduates earning below 21,000 (from the April you leave your course) Graduates earning between 21,000 and around 41,000 Interest applied RPI + 3% Graduates earning above 41,000 RPI + 3% RPI (no real rate of interest) Gradual scale RPI if earning 21,000 reaching a maximum of RPI+3% when earning 41,000

19 What will students spend their money on? Accommodation Bills (electric, internet, water) Travel Food/toiletries Clothes Mobile/landline TV and TV licence Books and stationery Photocopying/printing Clubs and societies Social life Plus many more

20 Before getting to university Apply for funding in plenty of time Do a budget planner Learn how to run a bank account Set up internet banking Check out student bank account deals Learn to food shop Try and bring a bit of money with you (advised 250+)

21 How do students get more money? Get a part-time job Psychology surveys Entrepreneurial flair Money and vouchers External funding sources are also available from scholarship sites such as Student Cash Point and Uni Grants

22 Summary Tuition fee loan Maintenance loan Repayable Non-repayable National Scholarship Programme and other support Maintenance grant Nothing is paid upfront Repayment of loans (tuition fees and maintenance) commence the April after you leave your course and you are earning over 21,000 per annum You repay 9% of your earnings over the 21,000 threshold

23 Thank you for listening