Transcript Finance Pkg No Gra

Welcome to our
Higher 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
STUDENT FINANCE MATTERS
Mrs Tolley
www.gov.uk/studentfinance
www.gov.uk/studentfinance
i
SESSION CONTENTS
• Student Finance England
• Section 1 – The Student Finance Package
• Section 2 – Student Loan Repayments
• Section 3 – Applications & Information
• Section 4 – Money Management
!
COMMON CONCERNS
!
COMMON CONCERNS
TUITION FEES
!
My child can’t afford to go to university, it’s far too
expensive!
i
No eligible students will have to pay their tuition
fees up-front to go to university or college
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
!
COMMON CONCERNS
REPAYMENTS
!
Debt from a student loan will be unmanageable!
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
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
GENERAL
!
If my child can’t afford to repay their loan then I’ll
have to foot the bill!?!
i
Student loans are the sole responsibility of the
student who takes them out
!
What effect will student loans have on applications
for mortgages or other loans/credit in the future?
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
i
STUDENT FINANCE ENGLAND
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)
1
THE STUDENT FINANCE PACKAGE
SUPPORT AVAILABLE TO STUDENTS INCLUDES:
Tuition Fee Loan
Maintenance (Living Cost) Support
Bursaries & Scholarships
Additional Support
Figures used in this section may change, subject to 2014/15
policy approval
1
TUITION FEES & LOANS
•
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
MAINTENANCE SUPPORT
•
Maintenance support is available to help with living costs a student
will 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 LOAN
2014/15 MAXIMUM RATES
Where Students Live & Study
Maximum Loan Available
Parental Home
£4,418
Live at home
Elsewhere
Live away from home and study outside
of London
£5,555
London
Live away from home and study in
London
Overseas
Study overseas as part of a UK course
£7,751
£6,600
Additional loan is available for each extra week of study for
students attending their course beyond 30 weeks
1
MAINTENANCE GRANT
•
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:
Household Income:
Up to £25,000
Full Grant of £3,387
Household Income:
Up to £42,620
Partial Grant
1
SUPPORTING AN APPLICATION
HOUSEHOLD INCOME
If you will be supporting a student’s application for student finance that
depends on household income, SFE will need to see details of your
household (taxable earned and unearned) income and National Insurance
number(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 APPLICATION
TAX YEAR USED FOR ASSESSMENTS
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
COMBINED MAINTENANCE SUPPORT
1
LIVING AWAY FROM HOME, OUTSIDE LONDON
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
Students can get a quick estimate of their student finance
entitlement using the calculator on gov.uk/studentfinance
1
BURSARIES & SCHOLARSHIPS
Many universities and colleges offer financial support to their students
through 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
Important to check university websites early and ask at open days
for information on available bursaries and scholarships
1
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
For more information on eligibility and applications for NHS
support go to: www.nhsbsa.nhs.uk/students
2
STUDENT LOAN REPAYMENTS
AN OVERVIEW
•
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
2
STUDENT LOAN REPAYMENTS
THE INTEREST
Interest added will vary, depending on a students circumstances:
During study until
entering repayment
Interest 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
2
STUDENT LOAN REPAYMENTS
THE FIGURES
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
More information on loan repayments and interest rates can be
found on: www.studentloanrepayment.co.uk
3
STUDENT FINANCE APPLICATIONS
RIGHT FIRST TIME - KEY MESSAGES
•
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
3
STUDENT FINANCE APPLICATIONS
RIGHT FIRST TIME - COMPLETING AN APPLICATION
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’s
If you can’t submit your income details online, send a photocopy
of evidence including: P60, Pay slips, Tax return, or Pensions
3
GOV.UK
FOR MORE INFORMATION & TO APPLY
www.gov.uk/studentfinance
3
UNISTATS
COMPARE UNI’S COURSES AND FEES
www.unistats.direct.gov.uk
SECTION 4
MONEY MANAGEMENT
4
MONEY MANAGEMENT
CONSIDER THE COSTS
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
?
Q
MONEY MANAGEMENT
HOW MUCH?
How much does this textbook
cost?
£35.95 New
£16.00 Used
(Amazon)
Q
How much is a 16-25 Railcard?
£30 for 1 yr
£70 for 3 yrs
Studying in London? An 18+ Student Oyster card can
save you 30% on Bus, Tram & Travelcard prices
?
MONEY MANAGEMENT
HOW MUCH?
Q
What is the average weekly cost
of student accommodation?
£117
per week*
Q
How much are these ‘delicious’
noodles?
11p
*Approximate figures from NUS & The Guardian, based
on university owned accommodation
4
MONEY MANAGEMENT
HINTS & TIPS TO CONSIDER
•
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
i
NEED MORE INFORMATION?
For 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
www.gov.uk/studentfinance