Student Finance 2012/13 Charmaine Valente Student Finance Consultant Charmaine_valente@slc.co.uk
Session Contents Who are Student Finance England? General Eligibility for Student Finance Student Finance Package 2012/13 Repayment IAG Resources for 2012/13
Student Finance England Are part of the Student Loans Company Administer financial support for higher education students who normally live in England, working in partnership with UCAS and HEIs Students apply to us each year for grants (which are not paid back) and loans (which are paid back) We pay Tuition fee loans directly to the university or college and pay maintenance grant or loan to the student
General Eligibility
Personal Eligibility Settled status can live in the UK without restriction Ordinarily Resident in England on the first day of the first academic year of their course Been living in the UK for the three years immediately prior to this date Exceptions for refugees Tuition fee support only, without meeting residency requirements, for European Union/European Economic Area students
Student Finance Package
Student Finance Package Tuition Fee Loan Additional Support Student Finance Package Maintenance Support Scholarships & Bursaries
Full Time Students Tuition Fee Loan Students don t need to find the money for fees up-front, they can take a loan which does not depend on income The amount they get depends on the cost of their fees up to max 9,000 in 2012/13 ( 6,000 loan limit for private providers) Before applying for a full-time course, they should check with their university or college how much their tuition is likely to cost Student Finance England pay the fees to the HEI
Part Time Students Tuition Fee Loan From September 2012 new part-time students can apply for a non means tested tuition fee loan which replaces the existing means tested fee and study grant The maximum universities or colleges can charge for part-time courses is 6,750 a year The amount charged will depend on the intensity of their course (Minimum 25%; Maximum 75%) Before applying for a full-time course, they should check with their university or college how much their tuition is likely to cost Student Finance England pay the fees to the HEI
Maintenance Support
Maintenance Grant Comparative Maintenance Grant Levels Household Income 25,000 & under 2011/12 Starters (*) 2012/13 Starters Maintenance Support Difference 2,906 3,250 344 27,500 2,406 2,795 389 30,000 1,906 2,341 435 32,500 1,406 1,886 480 37,500 875 977 102 40,000 710 523-187 42,500 546 68-478 47,500 216 0-216 52,500 0 0 0 *Maximum Maintenance Grant for 2011/12 Starters in 2012/13 will be 2984
Maintenance Loan Overview Maintenance Support The majority of the repayable maintenance loan will be available to all eligible students (if required), with 65% of the total loan amount being Non Means Tested (Not based on household income) The amount of maintenance loan available will be linked to where a student lives and studies:
Maintenance Loan Specific Amounts Maintenance Support Full-Year Student Parental Home 65% Non Means Tested 35% Means Tested Maximum Loan 2,843 1,532 4,375 Elsewhere 3,575 1,925 5,500 London 4,988 2,685 7,675 Overseas 4,247 2,288 6,535 For students attending their course beyond 30 weeks additional means-tested loan is available for each additional week of study
Combined Support. Maintenance Support based on living away from home outside London 2012/13 Household Income 25,000 & under Maintenance Grant Maintenance Loan Total 3,250 3,875 7,125 30,000 2,341 4,330 6,671 35,000 1,432 4,784 6,216 40,000 523 5,239 5,762 45,000 0 5,288 5,288 50,000 0 4,788 4,788 55,000 0 4,288 4,288 60,000 0 3,788 3,788 62,500 & over 0 3,575 3,575
Special Support Grant Tuition Maintenance Fee Support Loan Replaces the Maintenance Grant for students who can claim income-related benefits. Some examples: - Lone (single) parent Student with a partner who is also a student and one or both are responsible for a child under 20 who is in full-time education below higher education level Student with a disability who qualifies for the Disability Premium, Severe Disability Premium or income-related Employment and Support Allowance If awarded the Special Support Grant, the student s maintenance loan entitlement will not be reduced
Scholarships & Bursaries
Scholarships & Bursaries Scholarships & Bursaries Bursaries: May link to National Scholarship Programme Depend on circumstances Vary by institution Scholarships: Academic, sport or music Subject specific or generic Vary by institution
National Scholarships (NSP) Scholarships & Bursaries Real help for students with the costs of study. Options could include: Fee waiver or discount Free foundation year Discounted accommodation or other service Scholarship/bursary capped as a cash award at 1,000.
Additional Support
Disabled Students Allowance Additional Support Help towards the additional costs that a student may face as a result of their impairment, health condition or specific learning difficulty In addition to the standard student finance package Does not have to be repaid Is not affected by the household income Looks at the specific needs of the individual in relation to their studies
Disabled Students Allowance DSA Allowance rates 2012/13 Additional Support Allowance Part-time maximum support Full-time maximum Support Frequency of Payment Non-medical personal helper 15,390 20,520 Annual Specialist equipment 5,161 5,161 Duration of course Other disability-related expenditure 1,293 1,724 Annual Disability-related travel No Limit reasonable spending can be claimed Full and part-time disabled postgraduate students can receive up to 10,260 a year
Dependants Grants Childcare Grant Additional Support Based on 85% of actual childcare costs up to maximum of: 148.75 per week for one child 255 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 1,508. Adult Dependants Grant For students with a partner or another adult who is financially dependent on them (cannot be an adult child). Maximum grant 2,642. The amount the student receives will depend on net household income in the academic year of the course.
Additional Finance Additional Support Access to Learning Fund: Additional source of funding available to students through their HEI if facing financial hardship, need extra support with course/living costs or considering leaving higher education due to financial problems Trusts, charities, employer sponsorship Mum, Dad, other family!
Student Loan Repayment
Student Loan Repayment You are eligible for repayment: the April after you leave/graduate if full-time the April 3 years after starting if part-time (TBC) No repayments until earning over 21,000 pa ( 1,750 per month) gross Repayments collected by HMRC, at a rate of 9% of what you earn above 21,000 Any outstanding debt written off after 30 years Interest added at a rate of RPI plus 3% whilst you are on the course and up to entering repayment
Student Loan Repayment Comparison Income each year before tax Approximate monthly repayment Current Students Future Students 15,000 0 0 16,000 8 0 18,000 23 0 21,000 45 0 24,000 68 23 27,000 90 45 30,000 113 68 33,000 135 90 36,000 158 113 40,000 188 143
Student Loan Interest Rates Once Earning The government s plans are that: Interest on your loan will be applied at inflation (RPI Retail Price Index) plus 3% while you are studying, and up until the April after you leave university or college. From the April after you leave university or college if you are earning below 21,000, interest will be applied at the rate of inflation. For graduates earning between 21,000 and 41,000 interest will be applied between RPI and RPI + 3% on a gradual scale depending on income. For graduates earning above 41,000, interest will be applied at RPI + 3%.
Additional Information A student loan is very unlikely to affect your ability to get a mortgage (The Council for Mortgage Lenders ) Mortgage lenders are most interested in your monthly income ( ability to repay ) Under the new system monthly repayments lower = greater monthly income
Repayment thresholds will be modified: Current 15,000 earnings threshold to be uprated annually in line with inflation from 2012 (This change will help existing students/graduates) New 21,000 earnings threshold to be uprated annually in line with earnings from 2016 (When first new system graduates start repayments)
IAG Resources 2012/13
IAG Resources 2012/13 Student & Sponsor Resources Direct.gov site Yourfuture site Social media Customer helpline Practitioner Resources BIS student finance pages Practitioner site Downloadable materials Practitioner helpline
Student & Sponsor Resources
http://www.direct.gov.uk/studentfinance
http://yourfuture.direct.gov.uk
http://www.facebook.com/sfengland Ask Questions/Q&A Forums Fun Applications Information & Support Link to Help Videos
http://www.twitter.com/sf_england
Customer Helpline (for students & sponsors) Help with applications Info on student finance But check website first! 8am to 8pm Monday to Friday 9:30am to 5pm Saturday & Sunday 0845 300 5090
Further Research Course information Individual university websites http://www.ucas.com Student finance news, views & advice http://www.bbc.co.uk/news/education http://www.guardian.co.uk/education http://www.timeshighereducation.co.uk http://www.moneysavingexpert.com
Practitioner Resources
http://www.bis.gov.uk/studentfinance
http://practitioners.studentfinanceengland.co.uk
http://practitioners.studentfinanceengland.co.uk Application Process Regional Support Finance Packages Downloadable Resources
Practitioner Pack Resource pack containing fact sheets covering all aspects of student finance, fully updated for 12/13
Materials linked to IAG Quality Standards Two fully scripted 45 minute lesson plans Developed & trialled with IAG partners, updated for 12/13 Interactive & encourage research Fully mapped to IAG Quality Standards
Resources for use with parents Developed following partner survey & consultation Suite of resources including myth buster, FAQ & video
New Practitioner Website (Due October 2011)
Practitioner Helpline Team Regulations Complex Queries Designated Courses Expert Advice 10am to 4pm Monday to Friday 0845 602 0583 or ssin_queries@slc.co.uk
Student Finance Consultants Cover all of England Raise Profile of SFE Locally Encourage Use of Resources Support IAG Delivery Partners
Any Questions?