Student Finance 2014/15
Please note, the information in these slides has been put together by the University of Portsmouth, and is correct at the time of the presentation delivery. If you are looking at these slides later we recommend that you also visit www.port.ac.uk for the most upto-date information.
Some initial questions... Do you think that university is too expensive for you / your son or daughter? Are you concerned about how you / your son or daughter will pay for university?
Tuition fees and tuition fee loans Loans and grants for living costs University bursaries and scholarships Costs of living Loan repayments For students currently living in England. Different support arrangements are in place for students from Scotland, Wales and Northern Ireland.
Tuition Fees Tuition fees vary from course to course, the maximum is 9,000 per year. Fees may rise each year in line with inflation Fees at the University of Portsmouth will be 9,000 for full-time courses
Tuition Fee Loans Tuition fees do not have to be paid upfront. Eligible Home (UK) and EU students can apply for a loan to cover these costs, whether they study part or full time. Eligibility depends on residency status in the UK, and any previous study students may have done (either in the UK or elsewhere). Loans are repaid after graduation, depending on income.
Maintenance Loans Maintenance loans (for living costs) are available to all full-time students from England. These loans are partially income-assessed. The repayment terms are exactly the same as the tuition fee loan. The amount of loan available depends on: o Where the student lives o Household income o Whether they receive a maintenance grant
Minimum loan Maximum loan Living in parental home 2,725 4,418 Living away from home in the rest of the UK Living away from home in London 3,610 5,555 4,038 7,751 Loans are paid directly to the student, in three termly instalments
Maintenance Grants Maintenance grants (for living costs) are available to some full-time students from England. These grants are income-assessed, and do not have to be repaid. Household Income Up to 25,000 3,387 Maintenance Grant From 25,001-42,620 Partial grant 42,620+ No grant payable
University Bursaries & Scholarships Each institution will have its own bursary and / or scholarship scheme. Usually bursaries depend on household income and scholarships depend on achievement. May be discounts on tuition fees, money towards living costs or other benefits. Check university websites for what s on offer, eligibility criteria and application processes.
University of Portsmouth Bursary For full-time students from England No limit on numbers Household Income Award in year one Award in subsequent years 25,000 or less 2,000 tuition fee or accommodation discount* and 1,000 bursary 1,060 bursary each year From 25,001-32,000 1,000 bursary 1,060 bursary each year From 32,001-42,620 500 bursary 530 bursary each year Over 42,620 - - *Accommodation discount is only available to students in halls of residence and is subject to availability
Summary of support Students living away from home studying at Portsmouth Household income Tuition Fee Loan Maintenance Grant Maintenance Loan University of Portsmouth Bursary Up to 25,000 7,000* 3,387 3,862 1000 Up to 30,000 9,000 2,441 4,330 1,000 Up to 35,000 9,000 1,478 4,784 500 Up to 40,000 9,000 540 5,239 500 Up to 50,000 9,000-4,288 - Up to 60,000 9,000-3,788 - Above 62,125 9,000-3,575 - * If tuition fee discount chosen, 9,000 if accommodation discount chosen
Summary of support 9,000 Maintenance loan Maintenance grant UoP Bursary 8,000 7,000 Total towadrs living costs 6,000 5,000 4,000 3,000 2,000 1,000 0 25,000 30,000 35,000 40,000 42,620 45,000 50,000 55,000 60,000 Over 62,132 Household income
Studying outside England Wales o Tuition fees up to 9,000 depending on institution (loan available) o Maintenance loan and grant available from SFE (if eligible) o Institutional support / bursaries unlikely Scotland o Tuition fees up to 9,000 depending on institution (loan available) o Maintenance loan and grant available from SFE (if eligible) o Institutional support / bursaries unlikely Northern Ireland o Tuition fees up to 9,000 depending on institution (loan available) o Maintenance loan and grant available from SFE (if eligible) o Institutional support / bursaries unlikely
Studying outside England Other EU countries o Tuition fees that match students from that country i.e. if no fee charged to them, no fee charged to UK student o No living costs support from either country Rest of the world (US, Australia) o No support for either fees or living costs
Extra help students with disabilities Disabled Students Allowance o Up to 20,725 for a non-medical helper o Up to 5,212 for equipment o Up to 1,741 for general costs o DSA is non income-assessed and based on the specific needs of the student.
Extra help students with dependants Parents Learning Allowance o For students with children o Income assessed, up to 1,523 Childcare Grant o Income assessed, up to 85% of the costs of registered childcare (subject to a maximum cap) Adult Dependants Grant o For students with a partner who has no income o Income assessed, up to 2,668
Extra help for all students Access to Learning Fund / University Support funds o For students experiencing financial difficulty o Distributed by institutions Care Leavers and Foyer Residents Care Leavers and Foyer Residents bursaries o 1,600 per year at the University of Portsmouth
What counts as household income? Students under 25 years old are classed as dependent o The total taxable income of both parents will be used for the assessment (2012/13 tax year) o If parents have separated, the income of the parent that the student normally lives with will be used o If that parent lives with a partner then their income will also be included.
What counts as household income? Students over 25 years old are classed as independent o The total taxable income of any spouse or co-habiting partner will be used for the assessment (2012/13 tax year) Students under 25 may be treated as independent if they: o Are or have been married or in a civil partnership o Have a dependant child or children o Have spent time in local authority care o Are estranged from their parents or o Have supported themselves financially for at least three years
NHS funded courses BSc Radiography BSc Dental Hygiene & Therapy DipHE Operating Department Practice (Based on 2012/13 rates) Some or all tuition fees will be paid by the NHS Some or all tuition fees will be paid by the NHS Students can apply for: o A non income-assessed maintenance loan of 2,324 o A non income-assessed NHS grant of 1,000 o An income-assessed NHS Bursary of up to 4,395 depending on household income and number of weeks studied.
BSc Social Work Students can apply for the same package as other undergraduates: o Tuition fee loan to cover fees o Maintenance loan towards living costs o Maintenance grant towards living costs (income-assessed) o University bursaries and / or scholarships A non income-assessed Social Work bursary of 4,575 may be available in the second and third years of the course
Case Studies 1. Josh Studies History Household income of 24,000 Tuition fee loan Maintenance loan Maintenance grant UoP Bursary Total for living costs Year 1 7,000 3,862 3,387 1,000 8,249 Year 2 9,000 3,862 3, 387 1,060 8,309 Year 3 9,000 3,862 3, 387 1,060 8,309 Both fees and living costs support may rise each year in line with inflation Support levels are assuming there is no change in household income
Case Studies 2. Becky Studies Web Design Household income of 30,000 Tuition fee loan Maintenance loan Maintenance grant UoP Bursary Total for living costs Year 1 9,000 4,335 2,441 1,000 7,776 Year 2 9,000 4,335 2,441 1,060 7,836 Year 3 9,000 4,335 2,441 1,060 7,836 Both fees and living costs support may rise each year in line with inflation Support levels are assuming there is no change in household income
Case Studies 3. Paul Studies Business Studies with a placement year Household income of 45,000 Tuition fee loan Maintenance loan Maintenance grant UoP Bursary Total for living costs Year 1 9,000 5,341 - - 5,341 Year 2 9,000 5,341 - - 5,341 Placement year 900 2,347 - - 2,347 Year 3 9,000 5,341 - - 5,341 Both fees and living costs support may rise each year in line with inflation Support levels are assuming there is no change in household income
Weekly living costs Halls of residence 79-124 Private accommodation 75-85 Food and housekeeping 35-40 Utility bills 15-20 Other variable costs include: Travel 5-10 Phone 5-10 Contents insurance 2-3 Books and study equipment 400 (average per year) TV Licence 145.50 (per year) Social and leisure costs 30-40 You will also need to pay towards your accommodation before Total (39 you week get academic your student year) funding Roughly paid. 6,500 This - could 9,500be 250 advance rent for a room in halls, or a deposit and first month s rent plus possible fees for a room in a shared house, so try and save over the summer
When and how to apply One online application to Student Finance England covers loans, grants and usually bursaries www.gov.uk/studentfinance Apply from early 2014 Deadline is 31 st May 2014
Loan repayments Loan repayments start the April after the student has left the course, only if they are earning over 21,000 (gross). Graduates repay 9% of their income over 21,000. The repayment threshold will increase from 2017 in line with average wages. Any outstanding balance is written off 30 years after entering repayment. Repayments still have to be made if the graduate lives abroad, but there may be different thresholds.
Gross annual salary Monthly pay after tax and NI Monthly student loan repayment 20,000 1,368 0 25,000 1,651 30 30,000 1,935 67.50 35,000 2,218 105 Repayments are only based on graduate s income (and are taken directly from salary through PAYE) Interest accrued will vary based on income level maximum = RPI + 3%
Case Studies 1. Josh Josh starts work as an administrator in London on a starting salary of 25,000 His take home pay is 1,651 a month His initial repayments are 30 a month He receives an annual pay rise of 4% 29 years after graduation his salary is 77,966 and his monthly repayments are 214 After 30 years his outstanding balance is written off The total Josh has repaid is 36,274 The total Josh borrowed was 36,568 Based on RPI and annual repayment threshold increase at 3% throughout. Please note these figures are hypothetical examples only and real repayments may differ depending on the student s situation.
Case Studies 2. Becky Becky starts work as a web designer on a starting salary of 35,000 Her take home pay is 2,218 a month Her initial repayments are 105 a month She receives an annual pay rise of 5% After 20 years her salary is 105,896 and her monthly payments are 518 After 24 years she pays the full loan and interest off The total Becky has repaid is 90,629 The total Becky borrowed was 40,005 Becky could have made additional payments if she wanted to clear the loan earlier and pay less interest. Based on RPI and annual repayment threshold increase at 3% throughout. Please note these figures are hypothetical examples only and real repayments may differ depending on the student s situation.
Case Studies 3. Paul Paul starts work on a salary of 19,000 so he doesn t make repayments initially. After 4 years his salary rises to 23,520 so he starts to make repayments at 4 a month After 3 more years he takes an unpaid job at a charity so his repayments stop He goes back to employment 17 years after graduation, on a part-time basis. He earns 23,520 so still doesn t have to make repayments When Paul is 42 he starts working full-time again, with a salary of 38,480, making his payments 4 a month After 30 years his outstanding balance is written off The total Paul has repaid is 2,671 The total Paul borrowed was 46,270 Based on RPI and annual repayment threshold increase at 3% throughout. Please note these figures are hypothetical examples only and real repayments may differ depending on the student s situation.
Further information www.gov.uk/studentfinance www.gov.uk/student-financecalculator www.moneysavingexpert.com
Contact us Drop in: Second Floor, Nuffield Centre, St Michael s Road Phone: (023) 9284 3014 Email us: student.finance@port.ac.uk
www.port.ac.uk/money
A final question... Do you feel more positive about (your son or daughter) coming to university now you know the facts about student finance?
Any questions?