2016/17

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2 SECTION 1 SESSION CONTENTS Key Updates & Spending Review Full-time Student Finance Package Repayment Updates Key Messages and Resources

3 SECTION 1 KEY UPDATES POST SPENDING REVIEW 2015/16

4 SECTION 1 POSTGRADUATE LOANS OVERVIEW Government confirmed introduction of Postgraduate Loans from AY 16/17* Individuals able to borrow up to 10,000 (non-means tested) to contribute to Master s course fees and/or living costs Available to eligible English domiciled students studying in the UK Applicants must be aged under 60 on the first day of the first academic year of the course Loan available for Master s qualification (taught, research or professional) in any subject e.g MA, MBA, LLM, MRes 57,000 applicants estimated in first year () i *To read the full government response to the Consultation on Support for Postgraduate Study click here

5 SECTION 1 POSTGRADUATE LOANS REPAYMENT OVERVIEW Gross Annual Income Monthly Repayment (Post 2012 UG Loan) Monthly Repayment (Postgraduate Loan) 21, , , , , , , , i Repayment calculated at 6% of income above 21k Interest calculated at RPI + 3%

6 SECTION 1 SPENDING REVIEW KEY ANNOUNCEMENTS* The repayment threshold of 21,000 will be frozen until at least 2021 for all borrowers with post-2012 loans (24+ and HE) Introduction of maintenance support for part-time students from AY 18/19 Removal of cap on numbers of student places for nursing, midwifery and allied health subjects Switch from grant to loan funding for health students from AY 17/18 - access to 25% more financial support for health students during their studies Government will enable people to retrain in STEM subjects by removing the ELQ restriction on accessing part-time tuition fee loans from AY 17/18 i *To read the full government policy paper click here

7 SECTION 1 ADVANCED LEARNER LOANS CHANGES Government consultation issued March 2015* addressed the scope for expanding and simplifying current remit Spending Review Autumn Statement confirmed Government will expand the remit of Advanced Learner Loans, making them available to everyone aged 19 and over, studying at level 3 to 6 to provide a clear route for learners to develop high-level technical and professional skills The expanded policy will be implemented from the beginning of the academic year Learners will be able to apply for a loan for courses starting on or after the 1st August 2016, from May 2016 i *Link to 24+ Government Response: March 2015

8 SECTION 1 ADVANCED LEARNER LOANS CONSULATION The administration rules will also be simplified from : Concurrent study rule learner no longer prevented from undertaking two loans-funded courses consecutively Repeat study rule learner no longer prevented from undertaking loansfunded courses of the same type and level; e.g. Loan 1 Level 3 Diploma in Hairdressing Loan 2 Level 3 Diploma in Barbering Maximum number of loans a learner can take over their lifetime will remain at 4

9 SECTION 2 STUDENT FINANCE CORE & EXTRA SUPPORT 2015/16

10 SECTION 2 STUDENT FINANCE POLICY OVERVIEW Maximum fees and fee loan will be maintained at 2015/16 levels Maximum fees can be charged where an institution has met conditions on widening participation set by the Office for Fair Access (OFFA) Maximum non-means tested Tuition Fee Loan maintained at: 9,000 ( 6,000) for full-time courses (alternative provider cap) 6,750 ( 4,500) for part-time courses (alternative provider cap) From 2017/18 institutions offering high quality teaching will be allowed to increase tuition fees in line with inflation the government will consult on how this will be done

11 SECTION 2 MAINTENANCE SUPPORT 2016 COHORT FULL-TIME STUDENTS Revised package of Maintenance Support for new entrants into Higher Education in A/Y (2016 Cohort) Maintenance Grant and Special Support Grant replaced by additional Maintenance Loan The maximum level of Maintenance Loan has been increased by: 10.3% for those previously entitled to Maintenance Grant 2.41% for those previously entitled to SSG (excl those aged over 60) 2.41% for those previously entitled to SSG for those aged over 60 i Non-means tested and reduced rate Maintenance Loan (excluding bursary years) also increased by 2.41%

12 SECTION 2 MAINTENANCE SUPPORT WHO ARE 2016 COHORT STUDENTS? The following students will be assessed at 2016 cohort: Starting a full-time (F/T) course for the first time from 1 st August 2016 Starting a F/T course on 1 st August 2016 or later, having withdrawn from or abandoned a previous HE course in 15/16 or earlier Starting a F/T course on 1 st August or later, having transferred from a previous part-time course or F/T distance learning course started before 1 st August 2016 Starting a F/T course on 1 st August 2016 or later, having completed a part-time of full-time distance learning course which started before 1 st August 2016

13 SECTION 2 MAINTENANCE SUPPORT WHO ARE 2016 COHORT STUDENTS? The following students will be assessed at 2016 cohort, continued... Starting a F/T course on 1 st August 2016 or later, having completed a F/T lower level course which started before 1 st August 2016, where the gap in study between the two courses is more than 5 months Starting a postgraduate Initial Teacher Training (ITT) course on 1 st August 2016 or later There is NO gap year protection for students who deferred entry from A/Y 2015/16 until A/Y

14 SECTION 2 MAINTENANCE SUPPORT MAXIMUM MAINTENANCE LOAN RATES 2016 cohort F/T students, not eligible for benefits or aged over 60 Parental Home Rate: 6,904 Live at home while they study Elsewhere Rate: 8,200 Live and study away from home outside London London Rate: 10,702 Live and study away from home in London

15 SECTION 2 MAINTENANCE SUPPORT FULL YEAR MAINTENANCE LOAN RATES 2016 cohort F/T students, not eligible for benefits or aged over 60 Full Year Student* Maximum Loan (100%) Non-Income Assessed (% of Max Loan) Income Assessed (% of Max Loan) Parental Home 6,904 3,039 3,865 Elsewhere 8,200 3,821 4,379 London 10,702 5,330 5,372 Overseas 9,391 4,540 4,851 *Lower amounts available for final year students

16 SECTION 2 MAINTENANCE SUPPORT MAINTENANCE LOAN ASSESSMENT The income assessment for full year and final year rates of loans for living costs is calculated as follows: Parental Home Applicable Reduction 1 loan reduction for every complete 8.59 income increase above 25,000 Maximum Income Threshold* 58,201 and over Elsewhere London Overseas 1 loan reduction for every complete 8.49 income increase above 25,000 1 loan reduction for every complete 8.34 income increase above 25,000 1 loan reduction for every complete 8.41 income increase above 25,000 62,180 and over 69,803 and over 65,797 and over i *After which point only the non income assessed Maintenance Loan is available

17 SECTION 2 MAINTENANCE SUPPORT MAINTENANCE LOAN ENTITLEMENT 2016 cohort F/T students, not eligible for benefits or aged over 60 Household Income Home Elsewhere London 25,000 & under 6,904 8,200 10,702 30,000 6,322 7,612 10,103 35,000 5,740 7,023 9,503 40,000 5,158 6,434 8,904 45,000 4,576 5,845 8,304 50,000 3,994 5,265 7,705 55,000 3,412 4,667 7,105 60,000 3,039 4,078 6,506 i For an accurate indication of Maintenance Loan entitlement, link to:

18 SECTION 2 MAINTENANCE SUPPORT COMPARISON Household Income Continuing Student* New Student 25,000 & under 7,572 8,200 30,000 7,099 7,612 35,000 6,625 7,023 40,000 6,152 6,434 45,000 5,651 5,845 50,000 5,117 5,256 55,000 4,583 4,667 65,000 3,820 3,821 *2012 Cohort F/T Student - Elsewhere Rates

19 SECTION 2 MAINTENANCE SUPPORT 2016 COHORT F/T STUDENTS ELIGIBLE FOR BENEFITS 2016 cohort F/T students, eligible for benefits, not aged over 60 Full Year Student* Maximum Loan (100%) Non-Income Assessed (% of Max Loan) Income Assessed (% of Max Loan) Parental Home 8,144 3, % 5, % Elsewhere 9,347 3, % 5, % London 11,671 5, % 6, % Overseas 10,453 4, % 5, % *Lower amounts available for final year students

20 SECTION 2 MAINTENANCE SUPPORT 2016 COHORT F/T STUDENTS AGED OVER cohort F/T students, aged over 60 Household Income Income Assessment Total 25,000 & under 0 3,469 30, ,554 35,000 1,831 1,638 40,000 2, ,668 3, ,669 n/a 0 50,000 n/a 0

21 SECTION 2 MAINTENANCE SUPPORT REDUCED RATE MAINTENANCE LOAN RATES Full Year Student Sandwich Year* Parental Home 1,863 Elsewhere 2,483 London 3,487 Overseas 2,970 Final Year Student Sandwich Year Parental Home 1,414 Elsewhere 1,936 London 2,669 Overseas 2,170 i *Eligible students on full-year sandwich course paid placements where periods of F/T study are less than 10 weeks in aggregate

22 SECTION 2 LONG COURSES LOAN OVERVIEW Students may be eligible for the Long Courses Loan if studying a full time HE course where the A/Y exceeds the standard 30 weeks and three days Students can get a fixed amount per extra week of study* The amount depends on where the student lives and household income Student Lives & Studies Weekly Amount Student Lives & Studies Weekly Amount Parental Home 57 ( 56) Elsewhere 88 ( 86) London 113 ( 110) Overseas 122 ( 119) If the household income is below 39,796, maximum loan amount available per additional week then reduced by 1 for every additional 8.97 i *Up to 45 weeks. Students studying for 45 weeks or more in any 52 week period are assessed for the full 52 weeks

23 SECTION 2 DISABLED STUDENTS ALLOWANCES MAXIMUM RATES Allowance Part-Time Max Support Full-Time Max Support Frequency of Payment Non-medical personal helper 15,543 20,725 Annual Specialist equipment 5,212 5,212 Other disability-related expenditure Disability related travel Duration of Course 1,305 1,741 Annual No Limit Reasonable spending can be claimed i For both full-time and part-time postgraduate students, there is a single allowance of up to 10,362 a year

24 SECTION 2 DEPENDANTS GRANTS POLICY OVERVIEW Childcare Grant: Based on 85% of actual registered/approved childcare costs up to maximum of: per week for one child per week for two or more children Parents Learning Allowance: Help with course-related costs for students with dependent children Amount received will be between 50 and 1,573 Adult Dependants Grant: Normally for the student s partner. Can be for another adult who is financially dependent on the student where the adult s net income is not more than 3,796 p.a. Maximum grant available: 2,757

25 SECTION 2 NHS FUNDING ELIGIBLE COURSES Students must be accepted for an NHS funded place on a full or part time course which leads to professional registration as a: Doctor or dentist (they will be eligible for an NHS bursary after the 4th year of their course) Chiropodist (including podiatrist), dietician, occupational therapist, orthoptist, physiotherapist, prosthetist, and orthotist, radiographer, radiotherapist, audiologist or a speech and language therapist Dental hygienist or dental therapist Nurse, midwife or operating department practitioner

26 SECTION 2 NHS FUNDED COURSES HELP WITH LIVING COSTS Courses of up to 30 weeks and 3 days 2015/16 figures: Non meanstested Grant Means tested Bursary Non means-tested Loan London 1,000 3,191 3,263 Not London 1,000 2,643 2,324 With Parents 1,000 2,207 1,744 Courses of up to 30 weeks and 3 days figures: Non meanstested Grant Means tested Bursary Non means-tested Loan London To be announced To be announced 3,263 Not London To be announced To be announced 2,324 With Parents To be announced To be announced 1,744

27 SECTION 3 STUDENT LOAN REPAYMENTS OVERVIEW 2015/16

28 SECTION 3 STUDENT LOAN REPAYMENTS BALANCE WRITE-OFF FOR 24+ LOANS Completion of HE Qualification: When the student completes their HE qualification, SFE will identify if the student had previously completed a QAA Access to HE Diploma A student will be regarded as completing their HE course when they have not withdrawn and all payments have been made SFE will contact eligible students, to advise them their outstanding QAA Access to HE Diploma loan balance will be written off There is no financial limit to the amount of loan SFE will write off, therefore the full outstanding balance of QAA Access to HE Diploma loan(s) can be written off

29 SECTION 3 STUDENT LOAN REPAYMENTS STUDENT LOANS AND MORTGAGES The Financial Conduct Authority has confirmed in it s Mortgage Market Review that student loan repayments have to be included as committed expenditure in mortgage applications While this may effect how much a graduate can borrow, it does not mean they can t or won t be able to successfully secure a mortgage Quote from the Council of Mortgage Lenders: Student loan debt is treated in the same way as other types of debt, and regular repayments will reduce the disposable income, which is used in the income multiple/affordability calculation

30 SECTION 3 STUDENT LOAN REPAYMENTS THE INTEREST FULL-TIME Interest levels will depend on a students income and circumstances: During study until entering repayment % Interest Rate: Retail Price Index +3% Income: Under 21,000 % Interest rate is: Set at RPI Only Interest Rate: RPI Only Income: 21,000 to 41,000 % Interest Rate: RPI + up to 3% Income: Over 41,000 % Interest Rate: RPI +3% i The interest rate is updated once a year using the RPI figure from March which is carried forward and applied in September (currently 0.9%)

31 SECTION 3 STUDENT LOAN REPAYMENTS NEW REPAYMENT RESOURCES First cohort of students who took out loans to pay 9000 fees will enter repayment in April 2016: We want to ensure students understand what this means for them, and how much they are likely to repay Dedicated resource to support this strategy Animated elements App-like menus - Button link pack will allow it to be easily embedded on your website

32 SECTION 3 STUDENT LOAN REPAYMENTS NEW REPAYMENT RESOURCES Info-graphics A sliding scale break tool will down help complex customers information estimate into how easy much to understand interest they are being charged and what their monthly repayment will be, based on detail, helping customers understand the realities of their repayments: potential earnings:

33 SECTION 4 STUDENT FINANCE KEY MESSAGES & RESOURCES

34 SECTION 5 HELP EMBED KEY MESSAGES IF YOU RE IN A POSITION TO INFLUENCE The easiest way to apply is online at gov.uk/studentfinance It can take up to least six weeks to process an application so apply early Do not wait for a confirmed offer to apply for student finance Apply with preferred choice, details can be changed later if needed Monitor and make any changes yourself to your online account Re-apply each year Parents/partner can submit details online too no evidence needed Apply by the relevant deadline: 27 May 2016 for new full-time students 24 June 2016 for continuing full-time students

35 SECTION 5 SFE RESOURCES DEDICATED PRACTITIONER WEBSITE

36 SECTION 5 RESOURCES IAG MATERIALS NEW FOR A range of student finance resources are now available for academic year Quick Start Guides available to order in hard copy - SFE Quick Guides Full suite of fact sheets Presentations Student Finance films Exchange, the Practitioners E-Mag

37 SECTION 5 ONGOING SUPPORT Practitioner Helpline: The SFE Practitioner Helpline and box is for detailed or complex regulatory advice (not an alternative to the Customer Helpline) SSIN_queries@slc.co.uk Phone: (Monday to Friday 10am to 4pm) Regional IAG Partner Account Manager: For further advice and support with SFE resources, policy and processes Katy Barge West Midlands katy_barge@slc.co.uk Phone: