STUDENT FINANCE MATTERS

Transcription

1 STUDENT FINANCE MATTERS

2 i SESSION CONTENTS Student Finance England Section 1 The Student Finance Package Section 2 Student Loan Repayments Section 3 Applications & Information Section 4 Money Management

3 ! COMMON CONCERNS

4 ! COMMON CONCERNS TUITION FEES! i i My child can t afford to go to university, it s far too expensive! No eligible students will have to pay their tuition fees up-front to go to university or college. Regardless of household income, eligible students can apply for a Tuition Fee Loan to help with the cost of fees, and a Maintenance Loan to help with their living costs.

5 ! COMMON CONCERNS REPAYMENTS! i i Debt from a student loan will be unmanageable! Repayments don t start until your child s income is over 21,000 a year. They ll then repay only 9% of their income over this threshold. The amount they repay will only increase with their earnings as repayments are based on their income, not how much they ve borrowed.

6 ! COMMON CONCERNS GENERAL! i! i If my child can t afford to repay their loan then I ll have to foot the bill!?! Student loans are the sole responsibility of the student who takes them out. Student loans will have an affect on applications for mortgages or other loans/credit in the future? Student loans are unsecured government lending and are very different to commercial loans. They don t go on credit files or show up on credit checks.

7 i STUDENT FINANCE ENGLAND

8 i STUDENT FINANCE ENGLAND Student Finance England (SFE) provide financial support on behalf of the UK Government to students from England entering higher education in the UK: The two main costs full-time students will have while studying are tuition fees and living costs. SFE make finance available to help students with both. Depending on their circumstances, course and where they study, students may be able to get a range of financial help and support. This includes grants and bursaries (which don t have to be paid back) and loans (which do).

9 SECTION 1 THE STUDENT FINANCE PACKAGE

10 1 THE STUDENT FINANCE PACKAGE SUPPORT AVAILABLE TO STUDENTS INCLUDES: Tuition Fee Loan Maintenance (Living Cost) Support Bursaries & Scholarships Additional Support

11 SECTION 1 TUITION FEES & LOANS

12 1 TUITION FEES & LOANS Universities and colleges* can charge new full-time students up to 9,000 per year ( 6,750 part-time) for tuition fees. Eligible students won t have to pay any tuition fees up front. A Tuition Fee Loan is available to cover the fee charged by the university or college (up to 6,000 for approved courses at private HEIs). Tuition Fee Loan doesn t depend on household income. SLC pay any Tuition Fee Loan directly to a university or college. The loan is repayable, but only when the student s income is over 21,000 a year. *Publicly funded

13 SECTION 1 MAINTENANCE SUPPORT

14 1 MAINTENANCE SUPPORT Maintenance support is available to help with living costs a student will face while in higher education. Two main types of support are available, Maintenance Loan and Maintenance Grant. The Maintenance Loan is repayable and all eligible students are entitled to get some funding. The amount of loan available will depend on where a student lives and studies. Maintenance support is paid directly into the student s bank account each term.

15 1 MAINTENANCE LOAN 2014/15 MAXIMUM RATES Where Students Live & Study Parental Home Live at home Elsewhere Live away from home and study outside of London London Live away from home and study in London Overseas Study overseas as part of a UK course Maximum Loan Available 4,418 5,555 7,751 6,600 Additional loan is available for each extra week of study for students attending their course beyond 30 weeks.

16 1 MAINTENANCE LOAN MEANS TESTING Full-Year Student* 65% Non Means Tested 35% Means Tested Maximum Loan Parental Home 2,871 1,547 4,418 Elsewhere 3,610 1,945 5,555 London 5,038 2,713 7,751 Overseas 4,290 2,310 6,600 *Slightly lower rates of support apply to final year students

17 1 MAINTENANCE GRANT The Maintenance Grant doesn t have to be repaid. How much grant a student can get depends on their household income (100% means tested). Household income thresholds for 2014/15: Household Income: up to 25,000 Household Income: up to 42,620 Full Grant of 3,387 Partial Grant

18 1 SUPPORTING AN APPLICATION HOUSEHOLD INCOME If you ll be supporting a student s application for student finance that depends on household income, SFE will need to see details of your household (taxable earned and unearned) income and National Insurance (NI) number(s). Earned income includes: wages, salaries, tips, and other taxable employee pay long-term disability benefits received prior to minimum retirement age net earnings from self-employment Unearned income includes: interest from savings (only the annual summary is required) benefits and pensions rent from property or a room For most applications, SFE verify income from your NI number with no need to send any documents, unless we ask for them

19 1 SUPPORTING AN APPLICATION TAX YEAR USED FOR ASSESSMENTS Please give financial information for the tax year prior to when the student will start in higher education. For students starting in Sept 2014 please submit financial information for the 2012/13 tax year. Supporting an application drop in income: If your income has dropped by 15% or more in the current tax year SFE can reassess an application so a student may get additional support. Submitting a Current Year Income (CYI) form: support the student's application for finance as normal complete the (CYI) form with estimates of this financial year's details provide evidence to support estimates at the end of the current tax year

20 1 COMBINED MAINTENANCE SUPPORT LIVING AWAY FROM HOME, OUTSIDE LONDON Household Income Maintenance Grant Maintenance Loan Total 25,000 & under 3,387 3,862 7,249 30,000 2,441 4,335 6,776 35,000 1,494 4,808 6,302 40, ,282 5,829 42, ,530 5,580 42, ,555 5,555 50, ,836 4,836 62,132 & over 0 3,610 3,610 Students can get a quick estimate of their student finance entitlement using the calculator on gov.uk/studentfinance

21 SECTION 1 BURSARIES & SCHOLARSHIPS

22 1 BURSARIES & SCHOLARSHIPS Many universities and colleges offer financial support to their students through bursaries and scholarships. Bursaries: linked to personal circumstances and often, household income awards can include fee waivers or cash Scholarships: can be linked to academic results or outstanding ability in an area such as sport, music or art can be subject specific and are limited in numbers Important to check university websites early and ask at open days for information on available bursaries and scholarships.

23 SECTION 1 ADDITIONAL SUPPORT

24 1 ADDITIONAL SUPPORT Extra support may be available to students who: have a child or an adult who depends on them financially have a disability, long-term health condition, mental-health condition or specific learning difficulty study an NHS or Social Work course NHS courses include: nursing, midwifery, physiotherapy, speech and language therapy, dietetics, radiography, the later stages of medicine and dentistry For more information on eligibility and applications for NHS support go to

25 SECTION 2 STUDENT LOAN REPAYMENTS

26 2 STUDENT LOAN REPAYMENTS AN OVERVIEW Students won t make repayments until their income is over 21,000 a year gross (before tax). Full-time students will be due to start repaying in the April after graduating from/leaving their course. Repayments will be 9% of income over 21,000 and when employed deductions will be made from their pay through the HMRC tax system. If their income falls to 21,000 or below, repayments will stop. Early repayments can be made at any time, but any outstanding loan balance will be written off 30 years after entering repayment.

27 2 STUDENT LOAN REPAYMENTS THE INTEREST Interest added will vary, depending on a student s circumstances: During study until entering repayment Income: below 21,000 Income: 21,000 to 41,000 Income: above 41,000 Interest rate is: Retail Price Index (RPI) +3% Interest rate is: set at RPI Only Interest rate is: RPI plus up to 3% Interest rate is: Retail Price Index (RPI) +3% The interest rate applied is updated once a year in September, using the rate of RPI from that March which is carried forward.

28 2 STUDENT LOAN REPAYMENTS THE FIGURES Income each year before tax Income from which 9% is deducted Monthly Repayment (Approx) 21, ,000 4, ,000 9, ,000 14, ,000 19, ,000 24, ,000 29, ,000 39, More information on loan repayments and interest rates can be found at

29 SECTION 3 APPLICATIONS & INFORMATION

30 3 STUDENT FINANCE APPLICATIONS KEY MESSAGES FOR STUDENTS APPLY EARLY Each year thousands of students apply late for their finance and have no way to pay for their course or halls, some even have to drop out.....don t let that be your son or daughter! It'll take at least six weeks* to process an application so apply early! Apply online now at gov.uk/studentfinance to make sure that student finance is in place for the start of their course Students don t need a confirmed place at university or college to apply for student finance. Apply with their first choice, they can change details later if they need to. *SFE handle over 1 million applications a year, most involve interactions with other government departments, eg HMRC

31 3 STUDENT FINANCE APPLICATIONS APPLICATION DATES - NEW STUDENTS Jan 20th Student finance applications can be made from 20 January 2014* May 30th The application deadline for new students is 30 May 2014 *Returning students should wait to hear from SFE before re-applying for their finance.

32 3 GOV.UK FOR MORE INFORMATION & TO APPLY

33 3 STUDENT FINANCE APPLICATIONS GET IT RIGHT FIRST TIME Make a note of their account log-in details and keep them safe. Agree to share information from your application, this helps apply for many bursaries and some scholarships. Make sure any evidence and information needed to support an application is supplied first time (students and parent/partners ). Submit an application even if there s a delay in getting income details from parent/sponsors so some funding (Tuition and Maintenance Loan) will be available when they start their course. If SFE request any additional evidence or documents to support the application use recorded delivery!

34 3 STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - COMPLETING AN APPLICATION Before starting the application, students should have the following to hand: passport - SFE can check identity using valid UK passport details for most students university and course details bank account details and National Insurance number If you will be supporting a student s application you will need to set up your own account on GOV.UK and provide information including: National Insurance number(s), household income (from prior tax year) and details of other child dependent s

35 3 THE STUDENT ROOM FOR FURTHER INFORMATION & RESOURCES

36 SECTION 4 MONEY MANAGEMENT

37 4 MONEY MANAGEMENT CONSIDER THE COSTS Before starting in higher education, it s important students think about the costs they are likely to face and how to manage their money. A student will receive their maintenance support in termly payments and will need to budget for things like: books and other study materials accommodation, food and drink sports, leisure and social activities There will also be other costs they may not have thought of yet such as insurance or a TV Licence.

38 ? MONEY MANAGEMENT HOW MUCH? Q How much does this textbook cost? New Used (Amazon) Q How much is a Railcard? 30 for 1 yr 70 for 3 yrs Studying in London? An 18+ Student Oyster card can save you 30% on Bus, Tram & Travelcard prices.

39 ? MONEY MANAGEMENT HOW MUCH? Q What is the average weekly cost of student accommodation? 117 per week* Q How much are these delicious noodles? 11p *Approximate figures from NUS & The Guardian, based on university owned accommodation

40 4 MONEY MANAGEMENT HINTS & TIPS TO CONSIDER Plan a budget and (try to) stick to it! Ask questions and get any advice they need from teachers or advisers, current students, university or college staff. Check out student bank accounts and NUS Extra cards. Try to avoid taking credit cards, store cards or pay day loans!! Be aware of phishing scams protect their information!! If they should need financial support and advice once at university or college, staff there will be able to help.

41 i KEY MESSAGES POINTS TO BE CLEAR ON Important to make the right university/college and course choice!! Tuition Fee Loans are available to all eligible students and future repayments are linked to a students income, not what they owe Research all finance available especially bursaries & scholarships Apply on-line & on time no need to wait for a confirmed place Application deadline for new students 30 th May 2014!! Check all details are correct before submitting an application And remember that...

42 ? QUESTIONS & COMMENTS

43 i NEED MORE INFORMATION? For further Information on student finance and applications go to: For a range of helpful tools and guidance, visit: