Transcript Document

14th December 2012
Birkbeck University
Maggie Roy – Skills Funding Agency
1
Little public awareness
• Ground breaking reform being introduced
• No Grant funding for 24+ doing L3+ from
1st August 2013
• Applications for Loans open 1st April 2013
• Anyone starting before 1st August, continue to
be funded to complete
Policy Rationale
• Comprehensive Spending Review – greater pressure on resource
• Focus available funding on young people, those without basic skills,
those seeking work
• Maintain access to learning for those outside these groups by providing
finance. This enables learners to continue to participate by putting the
purchasing power in their hands, but at the same time removing the
upfront costs
3
Key Facts
•
Loans available for learners:
• aged 24 and above at the start of the course
• studying at advanced or higher levels
•
Loans are not means-tested and not subject to credit checks
•
The Student Loans Company will lend the requested amount and pay the
university/college directly in monthly instalments not via the learner.
•
Individuals who progress from an Access to HE Diploma course to complete
an HE programme can have their outstanding 24+ Advanced Learning Loan
for the Access course written off. (Ministerial statement 12th July 2012)
Loans are 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
4
Learner Eligibility
To be eligible for a Loan the learner must:
• Be aged 24 years and above on the first day of their learning aim
• Satisfy the nationality and residency criteria in line with the regulations
• Be studying:– Agency-approved learning aims in England
– At an Agency-approved provider in England in receipt of Adult Skills
Budget funding
• Previous educational study will not affect a learner’s entitlement to their
first Loan. For example graduates will be entitled to a Loan for an
Apprenticeship.
• The SLC will be responsible for determining a learner’s eligibility for a Loan
and for making Loans payments on behalf of learners to providers
5
Qualifications
• Loans may be used to fund the following types of further education provision
regardless of the mode of study:
–
–
–
–
–
–
–
–
A Levels (including A2s and AS levels) – up to 4 at 1 time
QAA Access to HE Diploma
QCF Level 3 Certificate
QCF Level 3 Diploma
QCF Level 4 Certificate
QCF Level 4 Diploma
Advanced Apprenticeships
Higher Apprenticeships
• 1 loan of each type/level, MAX 4 loans
6
Number of Loans
• An individual can only access one 24+ Advanced Learning Loan at a time and
may only take out one Loan for each qualification type.
• A single Loan application may include a programme of up to 4 A-Levels or
AS/A2s.
• One Loan application is required for the components of an Apprenticeship
Framework.
• Individuals can have up to a maximum of four Loans, this may be extended
should there be compelling personal reasons (see cases for 5th Application
– e.g. Stephanie following)
Number of Loans - Examples
Learner
Application 1
Application 2
Application 3
Application 4
Brian
QCF L4 Certificate
in Engineering
Access to HE
QCF L3 Diploma in
Electrical
Engineering
QCF L4 Diploma in
Engineering
Sam
Advanced
Apprenticeship in
Plumbing
QCF L3 Certificate
in Business
Administration
QCF L3 Diploma in
Starting your own
Business
Higher
Apprenticeship in
Plumbing
Laura
Advanced
Apprenticeship in
Creative Design
QCF L3 Diploma in
Graphic Design
QCF L3 Diploma in
Design
Management
QCF L3 Certificate
in Management
Jacob
Higher
Apprenticeship in
Hairdressing
A programme of ALevels
Maths
French
QCF L3 Diploma in
Beauty
A programme of Alevels
English
Stephanie
QCF L4 Certificate
in Tourism Services
QCF L4 Diploma in
Business Studies
QCF L3 Diploma in
Construction
Access to HE
Diploma




















Brian – 5th application
Application 1
Application 2
Application 3
Application 4
Application 5
QCF L4 Certificate
in Engineering
Access to HE
QCF L3 Diploma
in Electrical
Engineering
QCF L4 Diploma
in Engineering
Programme of Alevels





•Having successfully accessed four loans Brian applies for a fifth to complete a
programme of A-levels.
•Brian has accessed his maximum entitlement of four loans and the application
is therefore declined.
Sam – 5th application

Application 4
Application 5
Higher Apprenticeship in Plumbing
Higher Apprenticeship in Plumbing

•Sam is made redundant before the completion of his Higher Apprenticeship in Plumbing
and cannot find a job to complete his framework.
•The loan is suspended for 12 months and payments to the provider stopped.
•After 12months Sam has not found suitable employment, the learning is assumed to be
terminated and the loan moves into repayment.
•Sam is liable for the loan payments made to date.
•18 months later Sam gains employment with another organisation who will support the
completion of his Higher Apprenticeship.
•Under compelling personal reasons and subject to suitable evidence the SLC will
approve another Loan for the continuation of the same framework.
Stephanie – 5th application
Application 1
Application 2
Application 3
Application 4
Application 5
QCF L4 Certificate
in Tourism Services
QCF L4 Diploma in
Business Studies
QCF L3 Diploma in
Construction
Access to HE
Diploma
A programme of ALevels
Maths
French





•
After 8 weeks of starting the Access to HE Diploma Stephanie decides she has made
a mistake and chosen the wrong course.
•
Stephanie chooses to withdraw from the learning and the Loan payments to the
provider are stopped.
•
Stephanie is liable for the Loan payments made to date.
•
In discussion with the college Stephanie identifies a programme of A-Levels would be
more suitable for her needs.
•
Stephanie is able to use a fifth and final loan to support her completion of a
programme of A-levels.
Loan Amounts
• The minimum Loan a learner can apply for is £300
• The maximum Loan value a learner can apply for is the funding rate
published on LARA
– For Apprenticeships the maximum Loan rate is 50% of the rate for
the relevant framework pathway
• It is the individual’s choice how much of the provider fee is funded via a
Loan or other means.
• 2 weeks ‘cooling off’ period
• Where Higher Apprenticeships contain HEFCE funded qualifications, the
learner will be able to apply for both an 24+ Advanced Learning Loan and a
HE Loan
12
Fees
• It is the provider’s decision as to what they charge for a particular learning
aim however, it is not expected that the provider would need to charge more
than the maximum amount.
• SFA will confirm rates/issue in January 2013
• If the fee charged, as detailed on the application form, is lower than the Loan
value requested, the Loan value agreed will be reduced to reflect the fee.
• Providers will need to understand how the current VAT rules apply to them
and whether they will need to charge VAT on their fees to learners.
13
Simplification – Rates matrix
14
Loans Bursary Fund
•
The Minister confirmed in a statement on 12 July 2012:
‘A £50 million bursary fund over two years, disbursed by colleges and training
organisations. This will help vulnerable [Loans] learners such as those with
learning difficulties or disabilities, parents who need help with childcare, and
ex-military personnel. The level of the bursary fund will be kept under review
so we continue to provide the right level of support for those who need it’.
•
A single flexible budget to provide of support for disadvantaged and
vulnerable learners.
•
Providers have discretion on how funding is allocated to their learners.
•
The Bursary fund is intended to remove the barriers to Loans learners to
encourage them to begin or continue on their course.
•
However this fund cannot be used to pay fees
The HE vs FE Loan system
HE Loans
24+ ALLs
Fees
Regulated
Unregulated
Loan amount
Cover 100% of Fee
Only up to Maximum set by
SFA matrix
Course
Degree-level but set by
institution
Approved L3 or L4 qual on SFA
database
Application
Direct to SLC with UCAS help
Direct to SLC
Loan
distribution
Headcount
control
Cash quota
(fee/ student trade-off)
Key Facts – Repayment
•
Loan repayments mirror the Higher Education policy
•
Repayment will only start once the learner has finished their qualification
and is earning more than £21,000
•
Repayment of Loans is through the tax system; first repayments commence in
April 2016 in line with changes to HE repayment
•
Mechanism for voluntary repayments payable to the SLC (from individuals
and employers) this can happen at any stage
•
Repayments are at 9% of income above £21,000 – irrespective of the
amount of Loan taken out
•
Interest rates are variable based on income up to maximum of RPI+3% for
incomes above £41,000
•
Outstanding Loan balances written off after 30 years
17
Repayment
Example monthly repayment amounts, income each year before tax:
Up to £21,000
Repay £0
£22,000
Repay £7
£25,000
Repay £30
£30,000
Repay £67
£35,000
Repay £105
£40,000
Repay £142
•These repayments will be linked to earnings rather than Loan amount, so
regardless of how much a learner owes, the payments will be the same.
•If annual earnings fall below £21,000 repayments will stop and only re-start
when earnings increase to more than £21,000.
18
Learning and Funding
Information Letter
•
This document must be completed and issued to the learner, by the
college or training organisation, along with the published material on
Loans when the learner is considering applying for a Loan.
•
This gives the learner:
– the information they need to consider their funding options.
– the essential information they need to complete an application, should
they decide to apply for a Loan.
•
It can also:
– support the management of learner places, particularly when
considering the availability of Loans facilities.
– place some distance between the college or training organisation and
the learner’s funding choice.
– See draft letters on the Agency website here
19
Loans Materials – Available now
Learner Information:
•
Learner Fact sheet
•
Learner Frequently Asked
Questions
•
Learner journey storyboards
•
Independent financial advice
Where to access:
SLC practitioner site
www.practitioners.slc.co.uk/further-education.aspx
The Money Advice Service
https://www.moneyadviceservice.org.uk/en/articles/
24-advanced-learning-loans-to-replace-govtgrants
Employer Information
Where to access:
•
SLC practitioner site
www.practitioners.slc.co.uk/further-education.aspx
Lines to take and FAQs when
speaking to employers
20
Thank you &
Any Questions?
21