Sixth Sense Blair Campbell Student Finance IAG Team 13 May 2013.
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Transcript of Sixth Sense Blair Campbell Student Finance IAG Team 13 May 2013.
Sixth Sense
Blair Campbell
Student Finance IAG Team
13 May 2013
Objectives
• Changes this year, full-time and part-time
• A strong grasp of repayment
• Where to get further information
• Discussion common areas of uncertainty and difficult questions
But first...
Q: How much does
this textbook
cost?
A: £46.99
(Pearson education)
Q: How much do these
noodles cost?
A: 11p
Q: How much does a 16-25
railcard cost?
A: £28 for 1 year,
£65 for 3 years
Q: What is the average cost
of one of these?
A: £3.21
(£3.03 for Ale)
(Source: CAMRA)
Q: What is the approx average
cost of accommodation?
A: £117.67
per week
(NUS 2012)
Why is this important?
“We did a YouGov poll of 1,000 school-age students in Clearing and 44% thought they had to pay their fees upfront. That is terrifying”
Student Finance in 2014/15
Key Points for 2014/15
• Tuition Fees remain at £9,000 max
• Small (1%) increase in maintenance support – e.g. grant up from £3,354 to £3,387 max
• Continued transition to Gov.uk
www.practitioners.slc.co.uk
14/15 APPLICATION INFORMATION
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www.practitioners.slc.co.uk
14/15
• Apply as soon as possible – deadline is 31 May
• Don’t need a confirmed offer, apply with first choice university/college
• Apply online through GOV.UK
• Only supply additional finance/ID evidence if we ask for it
• Details can be changed online if necessary (Change of course etc)
• If unsure of tuition fee amount needed, select maximum
APPLICATIONS – KEY MESSAGES
www.practitioners.slc.co.uk
FOR MORE INFORMATION AND TO APPLY
www.gov.uk/studentfinance
www.practitioners.slc.co.uk
THE STUDENT ROOM - FOR FURTHER INFORMATION
www.thestudentroom.co.uk/studentfinance
www.practitioners.slc.co.uk
14/15
Scholarships & Bursaries
STUDENT FINANCE PACKAGE
Tuition Fee Loan
Maintenance (Living Cost) Support
Additional Support
The
Student Finance
Package
! *Figures used in this section are subject to final 2014/15 policy approval and may change
www.practitioners.slc.co.uk
14/15 TUITION FEES & LOANS
www.practitioners.slc.co.uk
• Up to £9,000 per year (£6,750 part time)
• Maximum loan depends on fee charged
• Optional - take all, part or none of fee loan
• Average fee in 2012 was around £8,500
• Higher fees ≠ higher cost
TUITION FEE LOAN – FULL TIME
www.practitioners.slc.co.uk
14/15 MAINTENANCE SUPPORT
www.practitioners.slc.co.uk
Where Students Live & Study Maximum Loan Available
Parental HomeLive at home £4,418
ElsewhereLive away from home and study
outside of London£5,555
LondonLive away from home and study in
London£7,751
OverseasStudy overseas as part of a UK course £6,600
MAINTENANCE LOAN – 2014/2015 RATES*
Additional loan is available for each extra week of study for studentsattending their course beyond 30 weeks!
www.practitioners.slc.co.uk
14/15
• The Maintenance Grant doesn’t have to be repaid
• How much you get depends on household income (100% means tested)
Household income thresholds for 2014/2015:
• Up to £25,000 can - maximum grant of £3,387*
• Up to £42,611 - partial grant
*Pending final policy approval
MAINTENANCE GRANT
www.practitioners.slc.co.uk
Household Income £
Maintenance Grant
Maintenance Loan
Total
£25,000 & under
£3,354 £3,823 £7,177
£30,000 £2,416 £4,292 £6,708
£35,000 £1,478 £4,761 £6,239
£40,000 £540 £5,230 £5,770
£42,611 £50 £5,475 £5,525
£42,875 £0 £5,500 £5,500
£50,000 £0 £4,788 £4,788
£60,000 £0 £3,788 £3,788
£62,125 & over £0 £3,575 £3,575
Student living away from home, outside London 2013/14
COMBINED LOAN AND GRANT EXAMPLE
www.practitioners.slc.co.uk
14/15 SCHOLARSHIPS & BURSARIES
www.practitioners.slc.co.uk
14/15
Bursaries:• Could be available through National Scholarship Programme• Linked to personal circumstance and often, household income• Vary by university or college
Scholarships:• Can be linked to academic results or ability in sport, music etc..• Subject specific or generic• Limited in numbers
SCHOLARSHIPS & BURSARIES
!Students should check university websites and ask at open daysfor information on bursaries and scholarships – what is availableand how/when to apply
www.practitioners.slc.co.uk
• Household income under £25k - assessed by SLC • Ordinary resident in England• Applied for means tested maintenance support• Application automatic via information supplied to SLC
Year 1 - Fee Waiver £3,500 Accommodation Bursary £1,000Year 2+ - Income related university bursary up to £2,000
Up to 374 Awards Over 550 Awards
Year 1 Only – Fee Waiver £7,000Cash Bursary £1,000 & £1,000 on ‘university account’ for use on other costs (accommodation, books etc..)
• On full-time undergraduate course with £9,000 fee• Ordinary resident in England, household income under £42k• Household in low participation region as identified by HEFCE• Eligibility checked via UCAS and student finance application
Up to 504 AwardsHOW
MANY
£9,000 over three years£3,000 can be taken cash, Example - £2,000 fee waiver & £1,000 cash or accommodation discount per year
THE
OFFER
• SLC assessed household income under £25k• Have made university firm choice through UCAS• Meet one of the universities set under represented criteria• Application to be made direct to university
TO
QUALIFY
NATIONAL SCHOLARSHIP OFFERS – 13/14 EXAMPLES
www.practitioners.slc.co.uk
14/15 ADDITIONAL SUPPORT
www.practitioners.slc.co.uk
14/15 ADDITIONAL SUPPORT
Extra money or support may be available to students if they;
• Have children or adults dependent on them
• Have a disability, long-term health condition, mental-health condition or specific learning difficulty
• Studying an NHS or Social Work course
• NHS courses include;Nursing, midwifery, physiotherapy, chiropody, dietetics, radiography, occupational therapy, the later stages of medicine and dentistry
! For further information and applications students should visit:www.nhsbsa.nhs.uk/students
www.practitioners.slc.co.uk
14/15STUDENT LOAN REPAYMENT –
THE REAL COST
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www.practitioners.slc.co.uk
14/15
• Nothing to pay until income is over £21,000 a year (£1,750 pm) gross - threshold will rise annually in line with average earnings increase
• Full time students will repay from April after graduating from/leaving their HE course (from April 2016 at the earliest)
• Part time students will repay from April 4 years after they started their course, or April after they leave their course (from April 2016 at the earliest, if income is over £21,000)
• Repayments are 9% of income earned over £21,000
• If income falls to £21,000 or below repayments will stop
STUDENT LOAN REPAYMENTS
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www.practitioners.slc.co.uk
14/15
• Any remaining balance cleared 30 years after entering repayment process
• No penalties for early repayments
• ‘A student loan is very unlikely to affect your ability to get a mortgage’
(The Council for Mortgage Lenders)
• Mortgage lenders are more interested in your spare monthly income (‘ability to repay’)
STUDENT LOAN REPAYMENTS
www.practitioners.slc.co.uk
Income each year before tax
Income from which 9% will be deducted
Approximate Monthly
Repayment
£21,000 £0 £0
£25,000 £4,000 £30
£30,000 £9,000 £67
£35,000 £14,000 £105
£40,000 £19,000 £142
£45,000 £24,000 £180
£50,000 £29,000 £217
£60,000 £39,000 £292
STUDENT LOAN REPAYMENT – THE FIGURES
! Any outstanding loan balance will be cleared 30 years afterentering repayment.
www.practitioners.slc.co.uk
Example 1 Old System Student
• 3 year course, £3,000 a year fees• £4,000 a year maintenance loan
• 25 year write off period
Owes £23,000 at end of studies, including interest
Starting Salary of £24,000
Total Repayments = £35,500
Repay full balance in 24.5 years
STUDENT LOAN REPAYMENT – COMPARISON
! Assumptions: 2% salary growth, 3% average inflation. Based on a report by HEPI on the Government White Paper, available here.
Example 2 New System Student
• 3 year course, £9,000 a year fees• £4,300 a year maintenance loan
• 30 year write off period
Owes £45,000 at end of studies,including interest
Starting Salary of £24,000
Total Repayments = £22,000
Balance written off after 30 years
www.practitioners.slc.co.uk
Gross IncomeOld System
Monthly RepaymentNew System
Monthly Repayment
£16,000 £1 £0
£18,000 £16 £0
£21,000 £39 £0
£24,000 £61 £23
£27,000 £84 £45
£30,000 £106 £68
£33,000 £129 £90
£36,000 £151 £113
STUDENT LOAN REPAYMENT – COMPARISON
! This year will see the first earnings linked rise in repayment thresholds for existing students. Up from £15,000 to £15,795.
www.practitioners.slc.co.uk
www.studentloanrepayment.co.uk
STUDENT LOAN REPAYMENT – DEDICATED WEBSITE
www.practitioners.slc.co.uk
14/15 RESOURCES AND FURTHER INFO
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www.practitioners.slc.co.uk
14/15
www.practitioners.slc.co.uk
PRACTITIONERS WEBSITE
www.practitioners.slc.co.uk
APPLICATION DEMO – ASSIST AND SUPPORT STUDENTS
www.practitioners.slc.co.uk
FACT SHEETS
Comprehensive suite of factsheets covering key areas of student finance, including: • Full-Time and Part-Time Support
• Eligibility, Applications and Repayments
• Disabled Students’ Allowances
• Care Leavers, Study Abroad and Other Support
• Students with Dependants
• Information for Parents of Students
www.practitioners.slc.co.uk
• How and when to apply
• Disabled Students’ Allowances (DSAs) Key Steps
• Dependants Grants
• What, how and when to repay
• Student finance explained: For parents of students
QUICK GUIDE SERIES – DOWNLOAD OR ORDER