Transcript Finance Pkg No Gra

STUDENT FINANCE MATTERS
www.gov.uk/studentfinance
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SESSION CONTENTS
• Student Finance England
• Section 1 – The Student Finance Package
• Section 2 – Student Loan Repayments
• Section 3 – Applications & Information
• Section 4 – Money Management
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COMMON CONCERNS
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COMMON CONCERNS
TUITION FEES
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My child can’t afford to go to university, it’s far too
expensive!
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No eligible students will have to pay their tuition
fees up-front to go to university or college.
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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.
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COMMON CONCERNS
REPAYMENTS
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Debt from a student loan will be unmanageable!
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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.
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The amount they repay will only increase with
their earnings as repayments are based on their
income, not how much they’ve borrowed.
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COMMON CONCERNS
GENERAL
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If my child can’t afford to repay their loan then I’ll
have to foot the bill!?!
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Student loans are the sole responsibility of the
student who takes them out.
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Student loans will have an affect on applications
for mortgages or other loans/credit in the future?
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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.
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STUDENT FINANCE ENGLAND
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STUDENT FINANCE ENGLAND
Student Finance England (SFE) provide financial support on behalf of the UK
Government to students from England entering higher education in the UK:
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The two main costs full-time students will have while studying are
tuition fees and living costs.
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SFE make finance available to help students with both.
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Depending on their circumstances, course and where they study,
students may be able to get a range of financial help and support.
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This includes grants and bursaries (which don’t have to be paid back)
and loans (which do).
SECTION 1
THE STUDENT FINANCE
PACKAGE
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THE STUDENT FINANCE PACKAGE
SUPPORT AVAILABLE TO STUDENTS INCLUDES:
Tuition Fee Loan
Maintenance (Living Cost) Support
Bursaries & Scholarships
Additional Support
SECTION 1
TUITION FEES & LOANS
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TUITION FEES & LOANS
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Universities and colleges* can charge new full-time students up to
£9,000 per year (£6,750 part-time) for tuition fees.
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Eligible students won’t have to pay any tuition fees up front.
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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 HEIs).
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Tuition Fee Loan doesn’t depend on household income.
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SLC pay any Tuition Fee Loan directly to a university or college.
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The loan is repayable, but only when the student’s income is
over £21,000 a year.
*Publicly funded
SECTION 1
MAINTENANCE SUPPORT
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MAINTENANCE SUPPORT
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Maintenance support is available to help with living costs a student
will face while in higher education.
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Two main types of support are available, Maintenance Loan and
Maintenance Grant.
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The Maintenance Loan is repayable and all eligible students are
entitled to get some funding.
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The amount of loan available will depend on where a student lives
and studies.
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Maintenance support is paid directly into the student’s bank account
each term.
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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.
MAINTENANCE LOAN
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MEANS TESTING
Full-Year
Student*
65% Non Means
Tested
35% Means
Tested
Maximum Loan
Parental Home
£2,871
£1,547
£4,418
Elsewhere
£3,610
£1,945
£5,555
London
£5,038
£2,713
£7,751
Overseas
£4,290
£2,310
£6,600
*Slightly lower rates of support apply to final year students
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MAINTENANCE GRANT
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The Maintenance Grant doesn’t have to be repaid.
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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
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SUPPORTING AN APPLICATION
HOUSEHOLD INCOME
If you’ll 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
(NI) 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, SFE verify income from your NI number
with no need to send any documents, unless we ask for them
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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.
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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 get additional support.
Submitting a Current Year Income (CYI) 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
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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
SECTION 1
BURSARIES & SCHOLARSHIPS
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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.
SECTION 1
ADDITIONAL SUPPORT
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ADDITIONAL SUPPORT
Extra support may be available to students who:
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have a child or an adult who depends on them financially
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have a disability, long-term health condition, mental-health condition
or specific learning difficulty
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study an NHS or Social Work course
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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
SECTION 2
STUDENT LOAN REPAYMENTS
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STUDENT LOAN REPAYMENTS
AN OVERVIEW
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Students won’t make repayments until their income is over £21,000
a year gross (before tax).
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Full-time students will be due to start repaying in the April after
graduating from/leaving their course.
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Repayments will be 9% of income over £21,000 and when employed
deductions will be made from their pay through the HMRC tax system.
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If their income falls to £21,000 or below, repayments will stop.
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Early repayments can be made at any time, but any outstanding
loan balance will be written off 30 years after entering repayment.
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STUDENT LOAN REPAYMENTS
THE INTEREST
Interest added will vary, depending on a student’s 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.
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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 at www.studentloanrepayment.co.uk
SECTION 3
APPLICATIONS & INFORMATION
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STUDENT FINANCE APPLICATIONS
KEY MESSAGES FOR STUDENTS – APPLY EARLY
Each year thousands of students apply late for their finance and
have no way to pay for their course or halls, some even have to drop out..
...don’t let that be your son or daughter!
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It'll take at least six weeks* to process an application so apply early!
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Apply online now at gov.uk/studentfinance to make sure that student
finance is in place for the start of their course
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Students don’t need a confirmed place at university or college to apply
for student finance.
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Apply with their first choice, they can change details later if they need to.
*SFE handle over 1 million applications a year, most involve
interactions with other government departments, eg HMRC
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STUDENT FINANCE APPLICATIONS
APPLICATION DATES for students applyingfor 2014/5
Jan
20th
May
30th
Student finance applications can be made
from
20 January 2014*
The application deadline for new students
is
30 May 2014
*Returning students should wait to hear from SFE before
re-applying for their finance.
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GOV.UK
FOR MORE INFORMATION & TO APPLY
www.gov.uk/studentfinance
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STUDENT FINANCE APPLICATIONS
GET IT RIGHT FIRST TIME
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Make a note of their account log-in details and keep them safe.
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Agree to share information from your application, this helps apply
for many bursaries and some scholarships.
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Make sure any evidence and information needed to support an
application is supplied first time (students and parent/partners’).
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Submit an application even if there’s a delay in getting income details
from parent/sponsors so some funding (Tuition and Maintenance Loan)
will be available when they start their course.
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If SFE request any additional evidence or documents to support the
application use recorded delivery!
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STUDENT FINANCE APPLICATIONS
RIGHT FIRST TIME - COMPLETING AN APPLICATION
Before starting the application, students should have the following to hand:
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passport - SFE can check identity using valid UK passport details
for most students
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university and course details
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bank account details and National Insurance number
If you will be supporting a student’s application you will need to set up
your own account on GOV.UK and provide information including:
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National Insurance number(s), household income (from prior tax year)
and details of other child dependent’s
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THE STUDENT ROOM
FOR FURTHER INFORMATION & RESOURCES
www.thestudentroom.co.uk/studentfinance
SECTION 4
MONEY MANAGEMENT
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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:
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books and other study materials
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accommodation, food and drink
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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.
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MONEY MANAGEMENT
HOW MUCH?
How much does this textbook
cost?
£35.95 New
£16.00 Used
(Amazon)
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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.
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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
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MONEY MANAGEMENT
HINTS & TIPS TO CONSIDER
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Plan a budget – and (try to) stick to it!
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Ask questions and get any advice they need – from teachers or
advisers, current students, university or college staff.
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Check out student bank accounts and NUS Extra cards.
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Try to avoid taking credit cards, store cards or pay day loans!!
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Be aware of phishing scams – protect their information!!
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If they should need financial support and advice once at university
or college, staff there will be able to help.
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KEY MESSAGES
POINTS TO BE CLEAR ON
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Important to make the right university/college and course choice!!
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Tuition Fee Loans are available to all eligible students and future
repayments are linked to a students income, not what they owe
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Research all finance available – especially bursaries & scholarships
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Apply on-line & on time – no need to wait for a confirmed place
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Application deadline for new students 30th May 2014!!
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Check all details are correct before submitting an application
And remember that....
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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