Student Finance 2016/2017 Question: Should student loans be renamed graduate contributions?

LoanGrantBursaries FeesScholarships

Summer Budget 2015 Chancellor announced … 2016/17 all means tested student maintenance grants will be replaced with loans. maintenance support loans will increase to £8,200 for those studying away from home outside London and to £10,702 for those in London tuition fee loans for 2016/17 remain the same. university will remain free at the point of entry – no one has to pay up front, and graduates only have to repay their loans when they are earning over £21,000. the government will consult on freezing the student loan repayment threshold at the current level of £21,000. from 2017/18 institutions offering high quality teaching will be allowed to increase tuition fees in line with inflation.

Universities and colleges* can charge new full-time students up to £9,000 per year in 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 a university or college** A Tuition Fee Loan doesn’t depend on household income SFE pay any Tuition Fee Loan directly to a university or college The loan is repayable, but only when a student’s income is over £21,000 TUITION FEES AND LOANS AN OVERVIEW

Maintenance Loan for Living costs

Away From Home

At Home

In London

Student A. – Maintenance Loan £8,200 2,733 Accommodation? Weekly living expenses? Mobile phone? Travel? Food? Social Life? Accommodation charge per academic year. 40 weeks

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 discounted tuition fees, accommodation or cash Scholarships: Linked to academic results or ability in an area such as sport or music Can be subject specific and are usually limited in numbers EXTRA SUPPORT BURSARIES AND SCHOLARSHIPS Students should check university/college websites and ask at open days to see what they offer and how/when apply i

Each year thousands of students apply late for their finance and have no way to pay for their course or accommodation, some even have to drop out! Please encourage the students you work with to apply on time! It will take at least six weeks to process an application so apply early The easiest way to apply is online at gov.uk/studentfinance* Students don’t need a confirmed place at university or college to apply Apply with their first choice, they can change details later if necessary STUDENT FINANCE APPLICATIONS KEY MESSAGE – APPLY EARLY from Deadline May i *Students wishing to study at alternative providers may need to wait until HEFCE approve the course designation before applying

Student Loan Company’s Top Tips 1.7 million student finance applicants. When completing the online application form it is best to have your National Insurance Number and Passport details to hand as you will be asked for this information as part of the application process. Keep a note of the address you use when applying for student finance and make sure you choose a password that you’ll remember. The most common calls to the Student Loans Company are from students who have forgotten their password. If you’re applying for funding based on household income, you and your sponsor (normally parent or partner) must provide the correct financial and personal information. Your funding can be removed if you are found to have provided incorrect details.

Student Finance Calculator

Students won’t make repayments until their income is over £21,000 a year gross (before tax) If they study a full-time course, they will be due to start repaying in the April after graduating from/leaving higher education They’ll repay 9% of their income over £21,000 and if employed, deductions will be made from their pay through the HMRC tax system* If their income falls to £21,000 or below their repayments will stop Any outstanding loan balance will be written off 30 years after entering repayment STUDENT LOAN REPAYMENTS AN OVERVIEW *If they move/work overseas, repayments will be 9% of any earnings over the threshold for the country they are living in i

£30 Monthly Repayment? £4,000 9% Deducted from? Income each year before tax 9% will be deducted from Monthly Repayment (Approx) £21,000£0 £30,000£9,000£67 £40,000£19,000£142 £50,000£29,000£217 £60,000£39,000£292 Income £25,000 STUDENT LOAN REPAYMENTS THE FIGURES Early repayments can be made at any time (with no penalty) if a student wants to reduce their loan balance early i

Interest levels will depend on a students income and circumstances: Interest rate is: Set at RPI Only Interest Rate: RPI Only During study until entering repayment Income: Under £21,000 Interest Rate: Retail Price Index +3% i The interest rate is updated once a year using the RPI figure from March which is carried forward and applied in September Income: £21,000 to £41,000 Income: Over £41,000 Interest Rate: RPI + up to 3% Interest Rate: RPI +3% STUDENT LOAN REPAYMENTS THE INTEREST

You may never repay it …

Sharia-compliant student finance

What next … 1.Use student calculator to work out how much grant you are eligible for. 2.Work out how much accommodation costs at your firm and insurance. 3. How much will you have left over.