Welcome to ourHigher Education Parents Information Evening

• 6.00 Mrs Tolley - Welcome and Introduction

• 6.05 Philip Smith - Coventry University on choosing universities and courses, widening degree courses and being ambitious but realistic.

• 6.25 Q&A

• 6.35 Mrs Tolley - Introduction to student finance.

• 6.50 Mr Bannister - Introduction to UCAS Apply and our systems.

• 7.10 Mr Preston - Five Ways students’ recent experiences with Higher Education and Careers guidance, MFAP

www.gov.uk/studentfinance

STUDENT FINANCE MATTERSMrs Tolley

www.gov.uk/studentfinance

SESSION CONTENTSi• Student Finance England

• Section 1 – The Student Finance Package

• Section 2 – Student Loan Repayments

• Section 3 – Applications & Information

• Section 4 – Money Management

COMMON CONCERNS!

! My child can’t afford to go to university, it’s far too expensive!

i 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

i No eligible students will have to pay their tuitionfees up-front to go to university or college

! COMMON CONCERNSTUITION FEES

i 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

! Debt from a student loan will be unmanageable!

i The amount they repay will only increase with their earnings as repayments are based on their income, not how much they’ve borrowed

COMMON CONCERNS! COMMON CONCERNSREPAYMENTS

i Student loans are the sole responsibility of the student who takes them out

i 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

! What effect will student loans have on applications for mortgages or other loans/credit in the future?

! If my child can’t afford to repay their loan then I’ll have to foot the bill!?!

COMMON CONCERNS! COMMON CONCERNSGENERAL

Student Finance England 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)

i STUDENT FINANCE ENGLAND

Bursaries & Scholarships

Tuition Fee Loan

Maintenance (Living Cost) Support

Additional Support

The

Student Finance

Package

Figures used in this section may change, subject to 2014/15policy approval

1 THE STUDENT FINANCE PACKAGESUPPORT AVAILABLE TO STUDENTS INCLUDES:

• 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 HEI’s)

• 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 institutions

1 TUITION FEES & LOANS

• Maintenance support is available to help with living costs a studentwill 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 receive 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

1 MAINTENANCE SUPPORT

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 LOAN2014/15 MAXIMUM RATES

Additional loan is available for each extra week of study forstudents attending their course beyond 30 weeks

1

• 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:

MAINTENANCE SUPPORT

Household Income:Up to £25,000

Household Income:Up to £42,620

Full Grant of £3,387

Partial Grant

MAINTENANCE GRANT1

If you will be supporting a student’s application for student finance thatdepends on household income, SFE will need to see details of your household (taxable earned and unearned) income and National Insurancenumber(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, SLC verify income from these NI numbers with no need to send any documents, unless we ask for them

1 SUPPORTING AN APPLICATIONHOUSEHOLD INCOME

Please give financial information for the tax year prior to when the student will start in higher education

• Eg, 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 receive additional support

Submitting a Current Year Income 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

SUPPORTING AN APPLICATIONTAX YEAR USED FOR ASSESSMENTS1

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

£40,000 £547 £5,282 £5,829

£42,620 £50 £5,530 £5,580

£42,875 £0 £5,555 £5,555

£50,000 £0 £4,836 £4,836

£62,132 & over £0 £3,610 £3,610

COMBINED MAINTENANCE SUPPORTLIVING AWAY FROM HOME, OUTSIDE LONDON1

Students can get a quick estimate of their student finance entitlement using the calculator on gov.uk/studentfinance

Many universities and colleges offer financial support to their studentsthrough 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

BURSARIES & SCHOLARSHIPSBURSARIES & SCHOLARSHIPS1

Important to check university websites early and ask at open days for information on available bursaries and scholarships

ADDITIONAL SUPPORT

Extra support may be available to students who:

• Have children or adults dependent on them

• 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

ADDITIONAL SUPPORT

For more information on eligibility and applications for NHSsupport go to: www.nhsbsa.nhs.uk/students

1

STUDENT LOAN REPAYMENTSTUDENT LOAN REPAYMENTSAN OVERVIEW2

• 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

Interest added will vary, depending on a students circumstances:

During study until

entering repaymentInterest rate is:

Retail Price Index (RPI) +3%

Income:

Below £21,000

Interest rate is: Set at RPI Only

Income:

£21,000 to £41,000

Interest rate is:RPI plus up to 3%

Income:

Above £41,000

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

STUDENT LOAN REPAYMENTSTHE INTEREST2

Income each year before tax

Income from which 9% is deducted

Monthly Repayment

(Approx)

£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 REPAYMENTSTHE FIGURES2

More information on loan repayments and interest rates can be found on: www.studentloanrepayment.co.uk

STUDENT LOAN APPLICATIONSSTUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - KEY MESSAGES3

• Apply online at gov.uk/studentfinance as soon as possible to make sure their student finance is in place for the start of their course

• Make a note of their account log-in details & keep them safe

• Students do not need a confirmed place at university or college to apply for student finance

• They can change most details online before starting their course

• Agree to share information from their application, this helps apply for many bursaries and some scholarships

STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - COMPLETING AN APPLICATION3

Before starting the application, students should have the following to hand:

• Passport - SLC 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 students application you will need to set up your own account on GOV.UK and provide information including:

• National Insurance number(s), household income, details of other

child dependent’sIf you can’t submit your income details online, send a photocopy of evidence including: P60, Pay slips, Tax return, or Pensions

www.gov.uk/studentfinance

GOV.UKFOR MORE INFORMATION & TO APPLY3

UNISTATSCOMPARE UNI’S COURSES AND FEES3

www.unistats.direct.gov.uk

MONEY MANAGEMENTSECTION 4

MONEY MANAGEMENTCONSIDER THE COSTS4

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

HOW MUCH?

Studying in London? An 18+ Student Oyster card can save you 30% on Bus, Tram & Travelcard prices

£35.95 New

£16.00 Used(Amazon)

£30 for 1

yr

£70 for 3

yrs

Q How much does this textbookcost?

Q How much is a 16-25 Railcard?

MONEY MANAGEMENTHOW MUCH??

Q What is the average weekly cost of student accommodation?

*Approximate figures from NUS & The Guardian, based on university owned accommodation

HOW MUCH?

11

p

Q How much are these ‘delicious’ noodles?

MONEY MANAGEMENTHOW MUCH??

MONEY MANAGEMENTHINTS & TIPS TO CONSIDER4

• 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

www.gov.uk/studentfinance

NEED MORE INFORMATION?iiFor further Information on student finance and

applications go to:www.gov.uk/studentfinance

For a range of helpful tools and guidance, visit:

www.thestudentroom.co.uk/studentfinance