Transcript Finance Pkg No Gra

www.practitioners.slc.co.uk
• Student Finance Package
• Repayments
• Applications & Information
• Questions & Comments
www.practitioners.slc.co.uk
www.practitioners.slc.co.uk
• Settled status – can live in the UK without any Home Office
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.
• Tuition fee support only, without meeting residency requirements for
European Union students.
• Exceptions exist for certain groups of students.
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• If the student, their spouse, civil partner, parent/stepparent are
recognised by the government as a refugee and lived in England
since this status was awarded.
• If the student, their spouse, civil partner, parent/stepparent, have
been granted Humanitarian Protection to stay in the UK by the
Home Office, resulting from a failed asylum application and meet the
standard ‘ordinary’ and 3 year residence requirements.
• EEA /Swiss migrant workers and the children of Swiss and Turkish
workers may also qualify for tuition fee loans and additional support if
they meet the set employment or residency requirements.
!
If there is any doubt surrounding their residency status or eligibility
for funding students should call the SFE help line - 0845 300 5090.
www.practitioners.slc.co.uk
• From AY 13/14 applications received from Armed Forces Personnel or
their family members will be processed by the funding body in the UK
territory where they resided prior to enlisting.
• Unless subsequent to this they have established permanent residence in
another administration. (Practice already in place in Wales & Scotland)
• Additional requirement for the residency category ‘Children of Swiss
Nationals.’
• The parent(s) of the ‘Child of a Swiss national’ must be exercising their
free movement rights in the UK on the first day of the first academic year
of the course for the student to be eligible to apply for the full package of
support .
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Course Eligibility
Courses must be of a certain type and be leading to a recognised
higher education qualification Including:
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First degree (BSc, BA, BEd)
Foundation degree (FdA, FdSc, FdEng)
Higher National Diploma or Higher National Certificate (HND/C)
Diploma of Higher Education (DipHE)
Postgraduate Certificate of Education (PGCE)
University or College Eligibility
The HEI must be publicly funded (by UK Government) or privately
funded but running individual courses receiving public funding as
designated by the government (BIS).
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• General rule – Tuition fee loan available for full length of the
student’s first undergraduate course, plus one additional year if
needed.
• If a student has previously studied in the UK, they may still be
eligible for maintenance loan support only if they do not have an
= 4 years
support
15/16 or+areADD
14/15
13/14 or higher
equivalent
level qualification
studying
an ‘exception
course’ leading to a professional qualification.*
Example based on standard 3 year F/T Course
• Individual circumstances of the student (including any extenuating
circumstances) can affect eligibility.
!
*Medical Doctor, Dentist, Veterinary Surgeon, Architect, Social
Worker, Course attracting means tested Healthcare Bursary (NHS)
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Tuition Fee Loan
Maintenance (Living Cost) Support
Scholarships & Bursaries
Additional Support
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www.practitioners.slc.co.uk
• Universities/Colleges of HE can charge a fee level of up to £9,000
per year but need to demonstrate increased efforts in widening
participation and justification for any fee levels over £6,000.*
• The levels set will be decided by the university including if it charges
at different levels for different courses.
• The average fee level for 2012 was around £8,657 up from the initial
£7,500 expected government average level.
(Independent & Times Higher Education)
*Presented in OFFA approved Access Agreement
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• Students on Sandwich years/study years abroad will be subject to
lower fee limits.
• Current levels, up to a basic amount of £3,000 or up to a
£4,500 higher amount for students at institutions with an accepted
access agreement.
• Students at private institutions not receiving funding from HEFCE but
offering courses designated by BIS will be entitled to borrow up to
£6,000 to cover their tuition costs.
• If the private institution is charging more, the student will need
to self-fund the remainder.
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• Eligible students will not have to pay up front for their tuition.
• The non means tested tuition fee loan (not dependant on household
income) is available to cover the fee levels set by the HEI.
Up to £9,000 max for full-time courses (£6,000 at private institutions)
• The Student Loans Company will lend the requested amount and pay
the university/college directly in instalments across the academic year.
Not compulsory, Students can also*:
• Pay full fees upfront to the university/college, or
• Pay part of the fees and take tuition fee loan for the rest
* To be agreed with the institution
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Tuition Fees will be paid to a HEI at three points in the academic year.
First day of Term 1*
First day of Term 2
% of Tuition Fee loan
student will be liable for
25%
25%
First day of Term 3
50%
Liability date
*Two weeks after Term 1 start date for part-time courses
!
Interest on the loan will be charged from the day payment is
made to the university/college, not from the liability date.
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• From September 2012 new part-time students can apply for a non
means tested tuition fee loan which replaces the means tested fee
and course grant. (Continuing students can still apply for these grants)
• The maximum universities or colleges can charge for part-time courses
is £6,750 a year.
• Students starting designated P/T courses provided wholly by a private
institution can apply for up to £4,500 in tuition fee loan.
• The amount charged will depend on the intensity of their course.
(Minimum 25% Maximum 75%) Students must complete their part-time
course in no more than 16 years.
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• Part-time students will not be entitled to a loan or grant towards living
costs but can access Disabled Students Allowance. (DSA)
• Part-time students from a low-income household may get support
through the National Scholarship Programme and should look into
other bursaries/scholarships offered by universities/colleges.
Part-Time study & benefits
• Part-time students can usually still claim benefits that depend on
household income (means-tested benefits) such as;
Income-based Jobseekers Allowance, Housing Benefit, and Council
Tax Benefit if unemployed.
!
Given the complexity of benefits, students should always contact
their local Jobcentre Plus for on-going eligibility assessment.
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www.practitioners.slc.co.uk
• The majority of the repayable maintenance loan will be available to
all eligible students. 65% of the total loan is Non Means Tested.
(Not based on household income)
• The amount of maintenance loan available will be linked to where
a student lives and studies while in higher education.
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Full-Year
Student
65% Non
Means Tested
35% Means
Tested
Maximum Loan
Parental Home
£2,843
£1,532
£4,375
Elsewhere
£3,575
£1,925
£5,500
London
£4,988
£2,687
£7,675
Overseas
£4,247
£2,288
£6,535
!
Additional means tested loan is available for each extra week of
study for students attending their course beyond 30 weeks.
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• The maximum non repayable maintenance grant level in 2013 is
£3,354.
• Unlike 100% of the tuition fee loan and up to 65% of the maintenance
loan, the grant a student receives is solely dependant on household
income levels. (100% Means Tested)
Household Income Thresholds:
• Students from households with income of up to £25,000 will be entitled
to the maximum grant of £3,354.
• Students from households with incomes of up to £42,611 will be
entitled to a partial grant.
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Student living away from home, outside London 2013/14
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
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www.practitioners.slc.co.uk
Bursaries:
• May link to National Scholarship Programme.
• Linked to personal circumstance and often, income level.
• Vary by institution.
Scholarships:
• Linked to academic results or ability in sport, music etc..
• Subject specific or generic.
• Limited in numbers.
!
Students should check university websites and ask at open days
for information on bursaries and scholarships – what is available
and how/when to apply.
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www.practitioners.slc.co.uk
• Help towards the additional costs that a student may face as a
result of their disability, mental-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
circumstances and studies.
!
Students need to be aware the DSA application process can take
up to 14 weeks!
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DSA Allowance rates 2013/14
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
For both full-time and part-time postgraduate students there is a
single allowance of up to £10,260 a year.
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Childcare Grant
Based on 85% of actual registered/approved 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
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: £2,642.
!
Dependants grants are income related. Universities may offer
additional support to students with childcare/caring responsibilities.
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www.practitioners.slc.co.uk
• Learners aged over 24 in further education (FE) and training will be able
to access finance on the same basis as in higher education (HE).
• Learners can apply for a loan to meet the upfront contribution costs of
their course, which will be paid directly to their college or training
organisation on their behalf.
• Loans available for Level 3 courses and above, this will include;
• A-Levels, Access to HE, Level 3+ Apprenticeships and other academic
qualifications eligible for public funding (provided they are funded at least
to the level of a QCF Certificate)
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• SLC will be responsible for the loan application, assessment,
payment (direct to the college/training organisation) and work
with HMRC on repayment.
• The repayment of FE loans will operate on the same, income
contingent basis as loans in HE. (based on 9% of income earned
above £21,000)
• Amount of loan available will reflect funding rate for course.
Maximum amount of loan will be equal to the fully funded rate for a
level 3 or Level 4 course. (Up to £4,000 TBC)
• Learners who have taken out a loan for FE and training will still be able
to take out a loan for HE.(If no previous HE study exists)
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• Loans available to those aged 24 and over at beginning of course
and meeting standard residency requirements.
Maximum period allowable for loan support:
• 2 years for a Level 3 or 4 Certificate, 3 years for a Level 3 or 4 Diploma
• 2 years for Advanced (Lev 3 ) Apprenticeship
• Higher Level Apprenticeships TBC
Individuals taking Access to HE courses:
• On completion of their Higher Education course, the SLC will write
off the amount outstanding on the loan for the Access course.
!
‘Access courses are designed to help those with low qualifications
but high ambitions progress into Higher Education, so it is right
that we should support those learners.’
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July 2012
Regulations laid before Parliament (to come into force on 1 September
2012) on implementation of 24+ Advanced Learning Loans.
September 2012
Communications to learners begin, with materials being made available to
support discussions and communications with potential learners.
December 2012
Final confirmation of “Loans facility” to colleges and training organisations for
2013/14 academic year.
April 2013
Learners can begin to apply for a 24+ Advanced Learning Loan for courses
starting in the 2013/14 academic year.
August 2013
First cohort of 24+ Advanced Learning Loan students commence study.
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For further information on the 24+ Advanced Learning Loan
policy see:
www.skillsfundingagency.bis.gov.uk
www.bis.gov.uk/policies/further-education-skills/24-plus-advanced-learningloans
Providers of FE can find more details at:
www.lpservices.slc.co.uk
If colleges or training organisations have any questions about the 24+
Advanced Learning Loan implementation, please email the Skills
Funding Agency:
[email protected]
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www.practitioners.slc.co.uk
• Graduates will not make repayment contributions until they are
earning at least £21,000 (£1,750 pm) gross.
(On entering repayment, his threshold will rise annually in line with
inflation/earnings)
• Full time students will begin to repay in the April after graduating
from/leaving their HE course. (After 2016)
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• Part time students can begin to repay in the April 4 years after
they have started their course. (If earning over £21,000)
• Repayments will be a basic 9% of income over £21,000 and will
be deducted automatically from pay through the HMRC tax system
for most students.
• If income falls to £21,000 or below repayments will be suspended.
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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
!
Any outstanding loan balance will be cleared 30 years after
entering repayment.
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There will be a variation in the interest rate attached to a students loan
during study and when earning following graduation:
During study until
entering repayment
Earnings:
Below £21,000
!
Interest rate is:
Retail Price Index (RPI) +3%
Interest rate is:
Set at RPI Only
Earnings Between:
£21,000 - £41,000
RPI plus some amount
between 0% and 3%
Earnings:
Above £41,000
Interest rate is:
Retail Price Index (RPI) +3%
No penalties will be placed on students making early repayments.
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!
Gross Income
Old System
Monthly Repayment
New 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
£67
£33,000
£129
£90
£36,000
£151
£113
The first earnings linked rise in repayment thresholds for existing
ICR students occurred in April 2012. Up from £15,000 to £15,795.
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Example 1
Old System Student
• 3 year course, £3,000 a year fees
• £4,000 a year maintenance loan
• 25 year write off period
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 £23,000 at end of studies,
including interest
Owes £45,000 at end of studies,
including interest
Starting Salary of £24,000
Starting Salary of £24,000
Total Repayments = £35,500
Total Repayments = £22,000
Repay full balance in 24.5 years
Balance written off after 30 years
!
Assumptions: 2% salary growth, 3% average inflation. Based on a
report by HEPI on the Government White Paper.
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www.studentloanrepayment.co.uk
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Students &
Parents/Sponsors
Customer Helpline
0845 300 5090
Expert Advice
for Practitioners
Practitioner
Helpline
0845 602 0583
Practitioner Team Email
[email protected]
Local Support
for Practitioners
Ben Rutter
075544 58871
Local SFA
[email protected]
Customer Website
www.direct.gov.uk/studentfinance
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