STUDENT FINANCE 2014-2015 FOR FULL-TIME UNDERGRADUATE Open Days Version – Please don’t edit these slides without first checking changes with Marc Rothera This finance talk is for full-time undergraduate students starting their first degree in 2014/15 I am not a financial adviser You don’t need to write anything down, green finance guides will be available at the end, this information is also on our website Will take questions at the end STUDENT FINANCE 2014-2015 FOR FULL-TIME UNDERGRADUATE 30/11/2018 12:04

Student Finance Common concerns: Debt Credit rating Repayments Fees Who is entitled to financial support?

Support available Tuition fee loan Maintenance loan and grant Special Support Grant Scholarships and bursaries Additional support Range of support available Access to funding depends on a variety of criteria, key points: UK National or ordinarily resident for three years before starting the course Dependent or independent student (define and highlight that most will be dependent) Note that you don’t have to be independent for consecutive months Briefly explain difference between loan/grant/bursary

Tuition fee loans No upfront fee Covers the full cost of your course Paid directly to your university Student Finance England provide the finance Will not affect credit rating, chances of getting a mortgage , credit card etc. Emphasise that there are no upfront fees Does not affect your credit rating We will cover repaying loans later

Maintenance Loan Covers living and study costs Part income assessed part not Everyone is entitled to a minimum but the higher payments are means tested Paid in three instalments per academic year Is repayable to Student Finance England The eligibility for this loan is based on an income assessment using residual income. This is the income before tax but after pension contributions. The amount available depends on where you stay while at university (leads into next slide)

Maintenance loan Term time location Doesn’t depend on household income (65%) Depends on household income (35%) Full rate 100% Living with parents £2,871 Up to £1,547 Up to £4,418 Not living with parents (outside of London) £3,610 Up to £1,945 Up to £5,555 This will start to give you an idea If your university isn’t in London – use the M25 as a guide

Maintenance Grant Does not have to be repaid Is income assessed, available to households up to £42,000 (this would be a partial grant) Paid in three instalments per academic year Student Finance England Available to households up to £42,000 who will get a partial grant Reduces the ‘debt load’ / entitlement to Maintenance Loan

Maintenance Grant - Summary Full-time student – household income Grant for courses from September 2014 £25,000 or less £3,387 £30,000 £2,441 £35,000 £1,494 £40,000 £547 £42,620 £50 42,620 No grant

Loans, Grants and Household Income, Grants and Household Income Table for someone living away from home but not studying in London Left - household income, Turquoise bars represent the loan (the money you have to repay) Green bars are the grant (the money you don’t have to repay. The ‘Min Loan’ line is the 65% of the loan that everyone gets before means testing Right hand column has the annual combined income from fees and loans. The loan tapers up as grant tapers down Then loan tapers back down because students from households with larger incomes should receive more support from their parents or sponsors Calculation would be for how much you get is actually pound for pound Grant is reduced by £1 for every complete £5.28 by which the income exceeds £25,000 Loan is reduced by £0.50 for every £1 of maintenance grant Loan is reduced by £1 for every complete £9.90 by which the income exceeds £42,875

Example First undergraduate degree Living away from home Household income of £35,000 Eligible for… £9,000 Tuition Fee Loan £4,808 Maintenance Loan £1,494 Maintenance Grant + Plus support from your university www.gov.uk/student-finance-calculator Here is a real world example.

Repaying the Loans Tuition/Maintenance Loan paid back after graduation Only repay when earning over £21,000 per year Paid back from your earnings If earnings fall below £21,000 per year, repayments stop According to Martin Lewis on average graduates under this system will will have £540-a-year more in their pockets than now…. The repayment threshold will rise by average earnings from 2017 You might want to point out that the old version of this presentation said ‘Earn £23k pay 10.80 a week’ which shows how much better off graduates are under this new system. Take home pay on £25kpa is around £1 Repayments based on what you earn, not what you owe e.g. Earn £25,000, repay £6.92 per week, around £30 a month (£360 a year)

Repaying the Loans Loan is cancelled if you have it for 30 years Does not affect credit rating Sliding scale interest rate, linked to Inflation and earnings During study period = RPI + 3% Up to £21,000 rate = RPI only £21,000 + = RPI + 0.15% for each £1000 over £21,000 £41,000+ = RPI + 3% This is the maximum rate We are still waiting for notice (14-06-11) of whether there will be penalties for early repayment, this could potentially go either way. If there are they will probably work like the penalties attached to a mortgage, you will be allowed to overpay to a certain level but after that an additional fee (some percentage of the money you owe) will be charged to your overpayments. TBC (But likely) the rate will be RPI + Or ‘Base Rate’ + whichever is lower (‘base rate’ is actually B0E base rate and 4 high st lenders averaged out) Be totally clear with people that the interest rate applied makes no difference to your repayments (as these are fixed at 9% of your earnings over £21k)

Special Support Grant If you are: A lone parent Aged over 60 Have children and your partner is also a student Eligible for certain means-tested benefits Registered deaf or blind Receiving incapacity benefit Receiving non means-tested disability allowance Leaving the care of your local authority Receiving non means-tested disability allowance (full criteria on page 13 of the guide) Show the Finance Guide page 13

Scholarships and Bursaries (Depends on your household income, location of study and expected grades) Fee reductions Cash bursaries Study support package National Scholarship Sports scholarships Look at what individual Universities can offer as they all focus on slightly different things! Explain what each of these are. Explain that each university offers different scholarships and bursaries. Fee reduction: Money off your tuition fees Cash bursary: Money that’s awarded to help with living and university costs, may have to spent on particular aspects of student life Study support package: We have Anglia Ruskin Books Plus which helps students pay for books, sports and clubs National Scholarship: The National Scholarship programme (sometimes known as NSP) helps students from low income backgrounds and can take the form of a fee reduction or cash bursary. These differ in different universities our universities National scholarship is awarded partly in cash bursary partly in fee reduction. Sports scholarships: Funding for students that are talented at sports.

NHS Students Nurses, Midwives, Operating Department Practitioners (ODP) Fees paid by NHS Bursaries available (also for Social Work) www.nhsbsa.nhs.uk/students

Basic NHS Bursary £1,000 £2,865 £3,351 £1,744 (£1,324 in final year)   Non means tested grant Estimated means tested bursary for 43 weeks* Estimated means tested bursary for 45 weeks* Non income assessed Student loan Living with parents £1,000 £2,865 £3,351 £1,744 (£1,324 in final year) Living elsewhere £3,657 £4,395 £2,324 (£1811 in final year) All branches of Nursing degrees and ODP courses are 43 weeks long Midwifery courses are 45 weeks long

NHS Funding Table Student living away from home on a 45 week course, There’s a non-means tested bursary of £1,000 As your household income increases the amount of means-tested bursary is reduced (turquoise bar) It’s suggested that the amount of funding not taken up by means-tested bursary is supplemented by parents or partner (bright green bar). The Student Finance England loan is £2,324 per year Reminder that loan reduces in 3rd year to £1,811 (because length of academic year is shorter)

Additiona Support If you have… Disabilities Mental health conditions Specific learning difficulties Dependent adults Children Mention students that could be helped by DSA include the those with dyslexia and dyspraxia. Endorse visit to Money Advise Service if these apply

Applying for the 2014 to 2015 Academic Year To get your funding by the start of term, you must apply by: 30 May 2015 if you are a new student For more information: https://www.gov.uk/student-finance Mention students that could be helped by DSA include the those with dyslexia and dyspraxia. Endorse visit to Money Advise Service if these apply