STUDENT FINANCE 2017/18 A PARENT’S INTRODUCTION

SESSION CONTENTS • Common concerns • Student Finance Wales The student finance package Student Loan repayment Applications and information Money management

COMMON CONCERNS

! i i 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 & Fee Grant to help with the cost of fees, and a Maintenance Loan to help with their living costs. *Eligible Welsh domiciled students studying at a publicly funded university or college

! i i 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 only repay 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 borrowed.

STUDENT FINANCE WALES

STUDENT FINANCE WALES OVERVIEW Student Finance Wales (SFW) provides financial support on behalf of the Welsh Government to students from Wales entering higher education in the UK: The two main costs full-time students will have while studying are tuition fees and living costs. SFW makes 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).

THE STUDENT FINANCE PACKAGE 2017/18

THE STUDENT FINANCE PACKAGE SUPPORT AVAILABLE TO STUDENTS INCLUDES: Bursaries, scholarships & part time Tuition fee support Maintenance (living cost) support Additional support & NHS The Student Finance Package The financial support package for students may change in 2018/19 following an independent review on higher education funding and student finance. You can find out more and keep up-to-date with the latest information by visiting the Welsh Government website (www.gov.wales/DiamondReview). Figures in this section may change, subject to 2017/18 policy approval

THE STUDENT FINANCE PACKAGE 2017/18 Tuition fees

TUITION FEES OVERVIEW Currently capped at £9,000 per year for universities and colleges in Wales. Universities and colleges in England who meet certain conditions can charge up to £9,250. The tuition fee will be decided by the university or college, including if it charges different amounts for different courses. The average tuition fee for new students in 2015 was about £8,703. Students at private universities or colleges offering courses designated by the Welsh Government will be able to borrow up to £6,165* towards tuition costs. *Students will have to self-fund any additional fee charged. Universities and colleges in England with an Access Agreement from the Office for Fair Access (OFFA) and meet the expectations of the Teaching Excellence Framework will be able to charge up to £9,250 a year for a full-time course. All universities in Wales and those in England who don’t meet these requirements will be able to charge up to £9,000 a year for a full-time course. 1. Personal eligibility Normally you must be living in Wales on the first day of the first academic year of your course and either: • have been living in the UK for the three years immediately before this date and have ‘settled status’ in the UK (meaning you can live permanently in the UK without the Home Office placing any restrictions on how long you can stay); or • meet the requirements of one of the other UK residency categories listed in the appropriate Regulations (for example, you are a refugee living in the UK). To qualify for a Maintenance Loan you need to be under 60 when you start your course. There’s no upper age limit on grants and Tuition Fee Loans. 2. Course eligibility The course you plan to study must be of a certain type (a ‘designated course’ such as a BSc, HND, PGCE) leading to a recognised higher-education qualification.

TUITION FEES TUITION FEE SUPPORT A Tuition Fee Loan of up to £4,296 is available if the university is charging £9,250, or up to £4,046 if the university is charging £9,000, as well as a Fee Grant to cover the difference between the available Tuition Fee Loan and the tuition fee charged by your university. Students can receive a maximum Fee Grant of £4,954. Tuition Fee Loans and Fee Grants are paid directly to your university or college. Tuition Fee Loans are repayable, but only when you’ve left university or college and your income is over £21,000 a year.

THE STUDENT FINANCE PACKAGE 2017/18 MAINTENANCE SUPPORT

MAINTENANCE SUPPORT Maintenance support is available to help with living costs a student will have while in higher education. Two main types of support are available: Maintenance Loan and Welsh Government Learning 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.

! MAINTENANCE SUPPORT Full-year student (*) 75% non means tested MAINTENANCE LOAN 2017/18 MAXIMUM RATES Full-year student (*) 75% non means tested 25% means tested Maximum loan Parental home £4,019 £1,339 £5,358 Elsewhere £5,191 £1,731 £6,922 London £7,273 £2,424 £9,697 Overseas £6,190 £2,063 £8,253 (*) Slightly lower rates of support apply to final year students. ! Additional means tested loan is available for each extra week of study for students attending their course beyond 30 weeks.

MAINTENANCE SUPPORT Household income: Full grant of £5,161 WELSH GOVERNMENT LEARNING GRANT The Welsh Government Learning Grant doesn’t have to be repaid. How much grant a student can get depends on their household income. Household income thresholds for 2017/18: Household income: up to £18,370 up to £50,020 Full grant of £5,161 Partial grant

Welsh Gov Learning Grant MAINTENANCE SUPPORT COMBINED SUPPORT: Student living away from home, outside London 2017/18 Household income £ Welsh Gov Learning Grant Maintenance Loan Total £18,370 & under £5,161 £4,342 £9,503 £20,000 £4,715 £4,565 £9,280 £25,000 £3,347 £5,249 £8,596 £26,500 £2,936 £5,454 £8,390 £30,000 £2,099 £5,873 £7,972 £34,000 £1,142 £6,351 £7,493 £40,000 £734 £6,555 £7,289 £45,000 £393 £6,726 £7,119 £50,020 £50 £6,897 £6,947 £50,753 £0 £6,922 £59,408 (+) £5,191 (+) £5,191 If their household income is less than £59,408, parent(s) or partners should provide details of their household income to ensure the student gets the full amount they’re entitled too. If their household income is over £59,408 providing these details will not increase the amount of student finance the student gets. The amount of loan for which students are eligible will be reduced by 50p for every £1 of grant to which they are entitled, up to a maximum of £2,580.   For income between £18,371 and £26,500, the grant is reduced by £1 for every complete £3.653 by which the income exceeds £18,370. For income between £26,501 and £34,000, the grant is reduced by £1 for every complete £4.180 by which the income exceeds £26,500. For income between £34,001 and £50,020, the grant is reduced by £1 for every complete £14.670 by which the income exceeds £34,000. A student whose income is £50,020 will be eligible for the minimum grant of £50. A student whose income exceeds £50,020 will not be eligible for any grant. Where a student’s income exceeds £50,753, the amount of loan to which they are entitled is reduced by £1 for every complete £5 by which the income exceeds £50,753 until 75% of the full Maintenance Loan remains. This point is indicated by (+) in the table above.

BURSARIES AND SCHOLARSHIPS

BURSARIES AND SCHOLARSHIPS OVERVIEW 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.

ADDITIONAL SUPPORT & NHS

ADDITIONAL SUPPORT OVERVIEW Extra money or support may be available if the student: has a disability, including a long-term health condition, mental-health condition or specific learning difficulty has children or adults who depend on them

OTHER COURSES NHS COURSES NHS support Students training for eligible courses may be able to get a bursary from the NHS. A bursary is a yearly payment to help with living costs and tuition fees. It’s paid each month and doesn’t have to be paid back. More detailed information is available at: http://www.nwsspstudentfinance.wales.nhs.uk/home Full-time students on NHS degrees can also apply for a fixed grant of £1,000 per year. SFW support Full-time NHS students can also apply to Student Finance Wales for a reduced rate Maintenance Loan which is not dependent on income.

OTHER COURSES NHS COURSES AT UNIVERSITIES IN ENGLAND Students studying medicine, dentistry or any other allied health profession course at a university or college in England from 2017/18 won’t be able to apply for funding from the NHS. They will be able to apply to Student Finance Wales for help with their living costs and tuition fees in the same way as students on other courses.

STUDENT LOAN REPAYMENT

Q A B B C REPAYMENT - HOW MUCH DO YOU KNOW? How much do you need to earn before you start paying back your student loan? A Over £16,000 B Over £21,000 B Over £21,000 These colours (A,B,C) need to be used as students are given colour cards to show which answer they think is correct. C Over £19,000

STUDENT LOAN REPAYMENT 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/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. If a student will be working or traveling outside the UK for more than three months after they finish or leave their course they must let us know. The amount they repay will be based on their income and the country they are living/working in. You can find out more about repaying from overseas at www.studentloanreapayment.co.uk

! STUDENT LOAN REPAYMENT THE FIGURES £21,000 £0 £25,000 £4,000 £30 Income each year before tax Income from which 9% will be deducted Approximate monthly repayment £21,000 £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 ! Any outstanding loan balance will be cleared 30 years after entering repayment.

Retail Price Index plus 3% STUDENT LOAN REPAYMENTS THE INTEREST Interest on the student’s loan will depend on their income and circumstances: During study until entering repayment Interest Rate: Retail Price Index plus 3% Income: Under £21,000 Interest Rate: RPI Only Income: £21,000 to £41,000 Interest Rate: RPI plus up to 3% You can find out more about repayment at www.studentloanrepayment.co.uk Income: Over £41,000 Interest Rate: RPI plus 3%

STUDENT LOAN REPAYMENT PARTIAL CANCELLATION OF LOANS Eligibility will be automatic once the student starts repaying their student loan, either voluntarily or when they are required to do so. Partial cancellation of up to £1,500. The amount of partial cancellation a student can received depends on the amount of Maintenance Loan they’ve borrowed and their current balance, for example: Students who have a Maintenance Loan of £300 and the amount of their first repayment is £10, they will receive a partial cancellation of £290. Students who have a Maintenance Loan of £3,000 and the amount of their first repayment is £50, they will receive a partial cancellation of £1,500. Students are only entitled to receive a partial cancellation once. Therefore, if they received a partial cancellation in 2015/16 they will not be entitled to another cancellation in any subsequent academic year. A partial cancellation will be available if a student takes out a Maintenance Loan (loans for living costs) from Student Finance Wales in academic year 2013/14 onwards. The partial cancellation will not be applied to Tuition Fee Loans. Subject to the following points, eligibility will be automatic once they start repaying their student loan, either voluntarily or when they are required to do so because their income is over £21,000. Is my child eligible for partial cancellation of their Maintenance Loan? If they took out a Maintenance Loan in academic year 2012/13 or onwards from Student Finance Wales, the Welsh Government may provide them with a partial cancellation of up to £1,500. The reduction will be applied to the balance of their student loan by SLC when they start repaying. They’ll not be eligible for a partial cancellation if they’ve any outstanding charges, costs, expenses or penalties in relation to their loan or if they’re in breach of their loan agreement. The partial cancellation will be £1,500 unless they’ve taken out a smaller Maintenance Loan. If they borrow less than £1,500, the partial cancellation will decrease in line with the amount borrowed. For example: • If they have a Maintenance Loan of £300 and the amount of their first repayment is £10, they will receive a partial cancellation of £290. • If they have a Maintenance Loan of £3,000 and the amount of their first repayment is £50, they will receive a partial cancellation of £1,500. • If they have a Maintenance Loan of £1,200 and the amount of their first repayment is £5, they will receive a partial cancellation of £1,195; • If they have a Maintenance loan of £200 and the amount of their first repayment is £200, they will not receive any partial cancellation. • If they take out a Maintenance Loan of £1,500, but make the first repayment of £50 after they’ve got their first instalment (of £500), then they’ll get a partial cancellation of £450. Whilst there would be no outstanding balance on their loan at that stage, the other instalments won’t get a partial cancellation and there’ll be a £1,000 balance on their account at the end of the year (plus interest). Interest will continue to accrue on their total loan until their first repayment has been received and they should note that they are only entitled to get a partial cancellation once. Therefore, if they get a partial cancellation in 2015/16 they won’t be able to get to another cancellation in any subsequent academic year. How does my child benefit from partial cancellation of Maintenance Loan? After they have made the first repayment of their student loan we will automatically cancel up to £1,500 of the Maintenance Loan that they took out. This repayment can either be mandatory (through your employer) or voluntary (through the Student Loans Company – such as, by making an online payment). However, in order to get the full benefit of the partial cancellation, they should have received each instalment of the Maintenance Loan due for the academic year before making a repayment.

APPLICATIONS & INFORMATION

APPLICATION INFORMATION KEY MESSAGES FOR STUDENTS Apply online through www.studentfinancewales.co.uk as soon as possible once the application service opens to make sure their student finance is in place for the start of their studies. Make a note of their account log-in details & keep them safe (if students have had EMA/ALG continue to use that customer reference number). 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.

APPLICATION INFORMATION 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 After they’ve submitted their application, they should: print, sign and return their online declaration send any evidence they’ve been asked for If you will be supporting a student’s application you will need to set up your own account on www.studentfinancewales.co.uk and provide information including: • National Insurance number, household income, details of other child dependents The easiest way for a student to prove their identity is to give us their valid UK passport number online when they apply. We can then check and confirm their identity without them having to actually send us their passport. If a student doesn’t have a valid UK passport they’ll need to send us their original UK *birth or *adoption certificate, along with a Birth/Adoption Certificate Declaration Form. This is available from studentfinancewales.co.uk If the student is a non-UK passport holder, they’ll need to send us their *valid non-UK passport and any original *supporting letters from the UK Border Agency explaining the student’s residency status. *These must be original documents, not photocopies. We’ll return them once we’ve confirmed their identity and checked they’re eligible. If there is more than one dependant child in the same household, a standard allowance of £1,130 is deducted from the household income for each of these additional dependants. If there is more than one student from the same household in higher education (depending on household income) a further reduction may be possible through applying split contributions (expected parental contribution to a student’s maintenance costs). For example, in a household with two students and a household contribution of £500, this would be divided between the two students. Where students in the same household fall under different student finance regulations, their household contribution would be calculated according to the regulations which apply to their individual circumstances. The household contribution is then divided by the number of students in that household. A full chart of expected contributions based on household income can be found in the policy documents on studentfinancewales.co.uk/practitioners If you can’t submit income details online, you can provide your details on paper.

SUPPORTING AN APPLICATION HOUSEHOLD INCOME If you’ll be supporting a student’s application for means-tested student finance SFW will need to see details of your household (taxable earned and unearned) income and National Insurance number. 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 your National Insurance number with no need to send any documents, unless we ask for them.

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. For students starting in Sept 2017 please submit financial information for the 2015/16 tax year. Supporting an application – drop in income: If your income has dropped by 15% or more in the current tax year SFW 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.

APPLICATION INFORMATION STUDENTFINANCEWALES.CO.UK First point of reference for student finance information, check entitlement using the student finance calculator and the site for applications.

UNISTATS COMPARE UNIVERSITIES AND COURSES Unistats provides the ability to compare a selection of courses and universities based on key information sets looking at important areas such as satisfaction and future employability, but also covers financial areas including average fee levels, bursary provision and average costs of accommodation in the particular town or city.

MONEY MANAGEMENT

MONEY MANAGEMENT HINTS AND TIPS FOR STUDENTS Before starting in higher education, students should think about the costs they are likely to face and how to manage their money, tips include: Plan a budget – and (try to) stick to it! Ask questions and get any advice they need. Check out student bank accounts and NUS Extra cards. Try to avoid taking credit cards, store cards or pay day loans!! If they need financial support and advice once they are at university or college, staff there will be able to help.

WHAT NEXT? Research - studentfinancewales.co.uk - guides and quick guides Apply - online - on time Payment - loans and grants paid into bank account shortly after starting course - fees paid directly to the university or college Repayment - start paying back their loans when they have left university and earn over £21,000

QUESTIONS?

CONTACT STUDENT FINANCE WALES For further Information on student finance and applications call us on: Customer helpline: 0300 200 4050 There are no silly questions when it comes to student finance, so if you’re unsure, ask!