STUDENT MONEY & ADVICE STUDENT FINANCE 2015

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1 STUDENT MONEY & ADVICE STUDENT FINANCE 2015 Facts and Figures for students starting studies in 2015

2 Student Finance 2015 Facts and Figures Student Finance 2015 Facts & Figures Who is this leaflet for? This leaflet is for students from England who are starting full-time undergraduate study in It is an overview of the cost of university, the funding available for students and explains how student loans are repaid. What does it cost to go to university? Broadly speaking there are two costs: Tuition fees - Universities and colleges can charge up to 9,000 fees per year for tuition. Fees can vary between universities and even between courses at the same university. Students do not have to pay the fees themselves up-front. Living costs - This can include things like accommodation, food, books, travel and leisure. What financial support can you get? Most students can get: Tuition Fee Loan to pay the tuition fees. Maintenance Loan for living costs. Maintenance Grant (or Special Support Grant) for living costs. Some students can get: Social Work and NHS Bursaries. Grants for students with a low income who have dependents. Allowances for disabled students. Whose income will affect grants and loans? This will depend on whether a student is classed as dependent or independent but will include: The student s own income but not earnings from part-time work when at university - only things like money from trust funds or investments. And for independent students: The income of their partner. And for dependent students: The income of the parent(s) that the student normally lives with. The income of the parent s partner (of the opposite or same sex). Only taxable income counts. Certain amounts will be ignored e.g. an amount for other dependent children and contributions to a pension scheme. Who is an independent student? Independent students can be students over 25, or who are married, or have children, or who have supported themselves for three years before the start of the course, or who are estranged from their parents. How much a student gets depends partly on household income. 1

3 Loans What is the Tuition Fee Loan? Students can borrow up to 9,000 each year for their tuition fees. The Student Loans Company pays the fee loan straight to the university. The amount of loan doesn t depend on household income. What is the Maintenance Loan? This is a loan for your living expenses. It is paid each year in three instalments, one in each term. How much you can borrow depends on things like where you are studying, the year of your course, where you live, and your household income. The most a student studying outside London can borrow is 5,740, but it is reduced taking into account things like whether you live at home with your parents, your parents or partner s income and also how much maintenance grant you are getting. 65% of the loan is not affected by household income. 35% depends on household income and is fully available if income is below 42,875. Above this income the loan amount available decreases until at an income of approximately 61,125 only the basic 65% is available.you can apply for just the non-income assessed element if you do not want to provide evidence of income. How much does the Student Loan cost and how is it repaid? The regulations may change from time to time and this means the terms of your loan may also change. All loans are added together into one account. Interest is added at the rate of inflation (RPI) plus 3% while you are on your course up until the April after your course has ended. If your earnings are below 21,000 then interest will be applied at the rate of inflation from the April after you leave university. The loan is repaid by graduates and not their parents or partners. Repayments begin when earnings are above 21,000. Between 21,000 and 41,000 interest is applied between RPI and RPI+ 3% (on a gradual scale). When your earnings are above 41,000 interest is applied at RPI + 3%. 9% of income that is above 21,000 is paid back each year e.g. 30 per month for a graduate earning 25,000 per year. Any loan balance remaining unpaid after 30 years is written off. Example of Loan Repayments Income each year before tax Monthly salary Monthly Repayment Up to 21,000 1, ,000 1, ,000 1, ,000 2, ,000 2, ,000 3,

4 Student Finance 2015 Facts and Figures Grants What is the Maintenance Grant? The Maintenance Grant is a cash payment towards living costs. It does not have to be repaid. The maximum amount available in 2015 is 3,387. It is paid in three instalments, one in each term. Who will receive the Maintenance Grant? Full Maintenance Grant will be awarded to students from households where income is assessed as being 25,000 or less. If your household income is between 25,001 and 42,620 then you should receive a partial Maintenance Grant. If your household income is more than this, then you will not receive any Maintenance Grant. Will receiving the Maintenance Grant affect the Student Loan available? Yes, half of the Maintenance Grant is paid in place of the Student Loan for Living Costs. So, for example; if you receive the full Maintenance Grant of 3,387 then the amount of the loan available to you will be reduced by 1,693. See the Ready-Reckoner at the end of this leaflet for an idea of how much grant and loan you could get. Morgan Dowler, a Business and Management student received a Vice Chancellor s Enterprise Scholarship to assist in starting her business Love Me (and my secret) ltd; specialist underwear designed for those affected by breast cancer. 3

5 Additional Funds What are Bursaries and Scholarships and who receives one? Bursaries and scholarships are often nonrepayable grants offered on the basis of need or on academic grounds. Many universities will offer awards like this, but these will only be available to certain students and may be specific to certain courses. Care Leavers Bursary & other support We wish to encourage students from backgrounds which traditionally do not participate in higher education but who have the ability to succeed in a challenging funding environment and who we believe can benefit from our employability focused curriculum. We support students through the following funds: High achievers scholarship Leeds Beckett Hardship Funds (see right) Associated schools and colleges bursary Care leavers bursary In addition, we continue to help students support themselves financially by offering a range of careers advice and guidance and by providing practical support into paid part time employment and internships through our well established Job Shop. What other help does the Government offer? Other financial support is available for: Students with children. Students who have an adult who is financially dependent on them. Disabled students. Students with an underlying entitlement to certain welfare benefits, who can apply for a Special Support Grant instead of the Maintenance Grant. Hardship Funds are available at Leeds Beckett University for students in financial difficulties that might prevent them from continuing with their studies. What other financial help is available? Some students search for additional non-government help in the form of scholarships, grants and company sponsorship. Some students work before going to university and save some of their income. Many students work part-time whilst studying and universities often help them find suitable work. Many banks offer students an interest free overdraft. 4

6 Student Finance 2015 Facts and Figures Budgeting Budgeting is a useful skill to learn before coming to university. Most universities will offer support and advice to students on how to manage on their student income. Fill in the budget table below to get a rough guide to your income and expenditure over the year, and to get an idea about whether you need to reduce your spending or increase your income. There are online budget calculators that can help to provide a more detailed estimate. You can find budgeting tips and links to online tools on our webpage at Income Example Student with full funding, working 14 hours a week. Annual figures in brackets (over 39 weeks). Your estimate Maintenance Loan 104 ( 4056) Maintenance Grant 87 ( 3393) Part-time Work 107 ( 4173) Other TOTAL IN 298 ( 11,622) Spending Accommodation 103 ( 4017) Food and household bills 53 ( 2067) Travel 36 ( 1404) Course costs 25 ( 975) Socialising 31 ( 1209) Other 50 ( 1950) TOTAL OUT 298 ( 11,622) *Part-time earnings and student spending based on NUS/HSBC Student Experience Report 5

7 Student Living Costs 2015 Ready-Reckoner Student living at home Income Grant Loan (Maximum 4,565) Total 25,000 3,387 2,872 6,259 30,000 2,441 3,345 5,786 35,000 1,494 3,818 5,312 40, ,292 4,839 42, ,540 4,590 45, ,344 4,344 50, ,823 3,823 55, ,301 3,301 58, ,967 2,967 Student living away from home Income Grant Loan (Maximum 5,740) Total 25,000 3,387 4,047 7,434 30,000 2,441 4,520 6,961 35,000 1,494 4,993 6,487 40, ,647 6,014 42, ,715 5,765 45, ,519 5,519 50, ,998 4,998 55, ,476 4,476 62, ,731 3,731 Students can also take out a non-income-assessed tuition fee loan to pay tuition fees. 6

8 Useful Websites Student Finance England Tel: Leeds Beckett Student Money & Advice Centre Money Saving Expert Other Funding Teachers Other UK students Scotland Wales Northern Ireland Other EU students NHS Courses and Social Work Courses