Finance Pkg No Gra - Practitioners

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Transcript Finance Pkg No Gra - Practitioners

• General eligibility • The student finance package • Repayments • SFE practitioner resources • Application information

• 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 for European Union students who don’t meet the residency requirements • Exceptions exist for certain groups of students

• If the student, their spouse, civil partner or parent/step-parent are recognised by the government as a refugee and have lived in England since this status was awarded • If the student, their spouse, civil partner or parent/step-parent 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’s any doubt surrounding their residency status or eligibility for funding, students should call the SFE helpline - 0845 300 5090.

• From AY 13/14 applications from Armed Forces personnel or their family members will be processed by the funding body in the UK territory where they lived 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

Course eligibility

Courses must be of a certain type and be lead to a recognised higher-education qualification including: • • • • •

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 the UK government) or privately funded but running individual courses that get public funding from the government.

• General rule – Tuition Fee Loan available for full length of the student’s first undergraduate course, plus one additional year if needed e.g. if the student changes course • If a student has previously studied in the UK, they may still be eligible for a Maintenance Loan if they don’t have an equivalent or higher-level qualification or they’re studying an ‘exception course’ leading to a professional qualification


• Individual circumstances (including any extenuating circumstances) can affect eligibility


*Medical Doctor, dentist, veterinary surgeon, architect, social worker, course attracting means tested Healthcare Bursary (NHS)

Tuition Fee Loan Maintenance (living cost) Support Scholarships & Bursaries Additional Support

• Universities/colleges can charge a tuition fee of up to


a year but need to demonstrate increased efforts in widening participation and justification for any tuition fees over


• The tuition fees set will be decided by the university, including whether it charges different tuition fees for different courses • The average tuition fee 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

• Students on sandwich years/study years abroad will be subject to lower tuition 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 getting funding from HEFCE but offering courses designated by BIS will be entitled to borrow up to £6,000 to cover their tuition fee costs •

If the private institution is charging more, the student will need to self-fund the remainder

• Eligible students


have to pay for their tuition fees up front • The non-means tested Tuition Fee Loan

(doesn’t depend on household income)

is available to cover the tuition fee set by the HEI up to £9,000 max for full-time courses (£6,000 at private institutions) • The Student Loans Company will pay the university or college directly in instalments across the academic year

Not compulsory - students can also*:

• Pay full tuition fees upfront to their university or college, or • Pay part of the tuition fees and take Tuition Fee Loan for the rest

* To be agreed with the university or college

Tuition Fees will be paid to a university or college at three points in the academic year.

Liability date

First day of Term 1* First day of Term 2 First day of Term 3

% of Tuition Fee Loan student will be liable for

25% 25% 50%

*Two weeks after Term 1 start date for part-time courses


Interest on the loan will be charged from day payment is made to the university or college, not from the liability date.

• From September 2012


part-time students can apply for a

non means tested

Tuition Fee Loan which replaces the means tested Fee Grant and Course Grant (


students can still apply for these grants) • The maximum universities or colleges can charge for new students on part time courses is £6,750 a year • Students starting designated part-time courses provided wholly by a private institution can apply for a Tuition Fee Loan of up to £4,500 • The amount charged will depend on their course intensity. (Minimum 25% Maximum 75%) Students must complete their part-time course in no more than 16 years

• Part-time students won’t be entitled to a loan or grant towards living costs but can apply for Disabled Students’ Allowances (DSAs) • 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 or 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 eligibility assessment.

The majority of the repayable Maintenance Loan

will be available to all eligible students.


of the total loan is 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.

Full-year Student

Parental home Elsewhere London Overseas

65% not based on household income


35% based on household income


Maximum Loan

£4,375 £3,575 £4,988 £4,247 £1,925 £2,687 £2,288 £5,500 £7,675 £6,535


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

• The maximum

non repayable

Maintenance Grant in 2013/14 is £3,354 • The grant a student gets is solely dependent on household income

Household income thresholds:

• Students from households with an 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

Student living away from home, outside London 2013/14

Household Income £

£25,000 & under £30,000 £35,000 £40,000

£42,611 £42,875

£50,000 £60,000 £62,125 & over

Maintenance Grant

£3,354 £2,416 £1,478 £540

£50 £0

£0 £0 £0

Maintenance Loan

£3,823 £4,292 £4,761 £5,230

£5,475 £5,500

£4,788 £3,788 £3,575


£7,177 £6,708 £6,239 £5,770

£5,525 £5,500

£4,788 £3,788 £3,575


• May be eligible for National Scholarship Programme • Linked to personal circumstance and often, income level • Vary by institution


• Linked to academic results or ability • Can be subject specific • Limited in numbers


Students should check university websites and ask at open days for information on bursaries and scholarships – what’s available as well as how and when to apply.

• Helps towards the additional costs a student may face as a result of their disability, long-term health condition, mental-health condition or specific learning difficulty • In addition to the standard student finance package • Don’t have to be repaid • Don’t depend on household income • Looks at the specific needs of the individual in relation to their circumstances and studies


Students need to be aware the DSAs application process can take up to 14 weeks so they should apply early!

Students may be eligible for DSAs if they have any of the following*: • A mental-health condition, such as anxiety or depression • A specific learning difficulty, such as dyslexia or dyspraxia • A developmental disorder, such as autism, ADHD/ADD • A long-term health condition or progressive medical condition such as Multiple Sclerosis, Cancer or HIV • A sensory impairment which could affect the ability to see or hear


*Other conditions not mentioned on this list may also be covered by Disabled Students’ Allowances.

Students can get DSAs if they: • are on a full-time or part-time undergraduate course including Open University and other distance-learning courses; or • are on an eligible full-time or part- time postgraduate course including Open University and other distance-learning courses; and • have a disability, long-term health condition, mental-health condition or a specific learning difficulty which affects their ability to study.


Generally, any previous study won’t affect eligibility for DSAs, even if students have received financial support.

DSAs rates 2013/14

Allowance Non-medical personal helper Part-time maximum support £15,390 Full-time maximum Support £20,520 Frequency of payment Annual Specialist equipment Other disability-related expenditure Disability-related travel £5,161 £5,161 Duration of course £1,293 £1,724 Annual No limit – reasonable spending can be claimed !

For both full-time and part time postgraduate students there’s a single allowance of up to £10,260 a year.

Childcare Grant

Based on 85% of actual registered/approved childcare costs up to maximum of:


per week for one child


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 isn’t 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.

• Making use of the same income information for the core assessment and the targeted assessment • Using the residual prior financial year income for partners and other adult dependants and the net income from the prior financial year for dependent children • No longer use applicant’s estimates of ‘recurring financial obligations’ in the financial assessment and instead use standard disregards (applies to students starting a new course from September 2013) • Existing disregards are to be increased, to help mitigate the impact of this change • Further information can be found on:

• All new and returning students in AY 13/14 are subject to the prior financial year income change and only new students in AY 13/14 are subject to the new standard disregards • Returning students in AY 13/14 will continue to provide their estimates of their recurring financial obligations • From AY 13/14 a cap is to be applied to the amount of Childcare Grant payable in the first payment period of an academic year where an applicant does not provide details of a childcare provider.

(£115 per week, or 85% of estimated costs, whichever is less) • Once the applicant has supplied childcare provider details, a reassessment will be carried out and any additional Childcare Grant entitlement will be paid to the student

• Repayments won’t start until the students income is over

£21,000 (£1,750 a month).

a year (On entering repayment, this threshold will scale annually in line with earnings) •

Full-time students

will begin to repay in the April after graduating from/leaving their course

(From 2016)

Part-time students

can begin to repay in the April

4 years

after they’ve started their course

(If income is over £21,000)

• Repayments will be 9% of income over £21,000 and if in employment will be deducted automatically from salary through the HMRC tax system for most students • If income falls below £21,000 repayments will stop

Income each year before tax £21,000 £25,000 £30,000 £35,000 £40,000 £45,000 £50,000 £60,000 Income from which 9% will be deducted £0 £4,000 £9,000 £14,000 £19,000 £24,000 £29,000 £39,000 Approximate monthly repayment £0 £30 £67 £105 £142 £180 £217 £292 !

Any outstanding loan balance will be written off 30 years after entering repayment.

The interest charged will vary during study and depending on earnings after graduation.

During study until entering repayment

Interest rate: Retail Price Index (RPI) +3%

Income: Below £21,000

Interest rate: RPI Only

Income between: £21,000 - £41,000

RPI plus some amount between 0% and 3%

Income: Above £41,000

Interest rate: Retail Price Index (RPI) +3%


Students can make extra voluntary repayments at any time.

Gross income

£16,000 £18,000 £21,000 £24,000 £27,000 £30,000 £33,000 £36,000

Old System monthly repayment

£1 £16 £39 £61 £84 £106 £129 £151

New System monthly repayment

£0 £0 £0 £23 £45 £67 £90 £113


The first earnings-linked rise in repayment thresholds for existing students occurred in 2012. Up from £15,000 to £15,795.

• •

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

• •

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 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.

Since launching the SFE service we have produced a range of resources each academic year, aiming to: • Provide practitioners clear policy based information, both for their own knowledge and for assisting students make informed decisions on HE funding.

• Engage with and communicate key messages to students and their families.

Academic Year 2010/11 Academic Year 2011/12

Out with the old……..

• Fact Sheets & Quick Guides • Range of Videos • Application Demonstration • Website Resources

Available for download and print pre-order: • How and when to apply • Disabled Students’ Allowances (DSAs) Key Steps • What, how and when to repay •


Student finance explained: For parents of students

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 • Dependants’ Grants • Information for parents of students

New animation:

• Student Finance Explained, with your host Bob Bamboo! • (Featuring prospective students’ views and concerns, with information on student finance)

Teacher’s Pets:

• An interactive learning tool that teaches students the basics of student finance.

Play online at:

• Applications should be made as soon as possible to ensure payments can be made at start of the academic year • Applying online is the quickest and easiest way for students and parents/sponsors • Only supply additional evidence to support an application if we ask for it

In the first instance:

• Student identity is checked using passport number supplied online and verified through IPS • Household income is verified through submitted National Insurance numbers via HMRC

• Students don’t need to wait for a confirmed offer: they should apply with their first choice of university/college • Details can be changed online if necessary (change of course etc.) • Consent to share information (helps with scholarship/bursary provision) • Students will be assessed for non-means tested support if there are any delays in getting household income information • If unsure of fee amount needed, students should select the maximum. The fee loan paid will never exceed the actual level charged by the HEI

• Important they make the right university and course choice, not letting fee levels affect their decision. Future repayments are linked to a student’s income, not what they borrow • Research all finance available – especially bursaries & scholarships • Apply online & on time – no need to wait for a confirmed place • Apply for DSAs or other additional support as soon as possible • Ensure all details are correct before submitting an application, and let us know of any changes • Check and update account online where possible.