£ 12_13 Student Finance

12_13 Content How it all works Applying Repaying Resources

12_13 A word about fees Up to £9,000 per year… …but tripling fees tripling costs: the real cost is in repayment Nothing has to be paid upfront Most students wont repay the full amount borrowed

12_13 Summary of changes for 2013 Full and part-time fees remain £9,000 max Living cost loans remain fixed at 2012 rates Household income thresholds remain fixed at 2012 rates

12_13 What support could I get?

12_13 Tuition Fee Loan Loan for cost of fees ( up to £9,000 per year in 2013) Available for full-time and part-time study Repay only once graduated and once earning £21k

12_13 What support could I get?

12_13 Living Cost Support Money for living costs – bills, food, rent Amount depends on income May receive a grant (non-repayable) – earnings under £42,600 Repay loans only once graduated and once earning £21,000

12_13 Household Income Maintenance Grant Maintenance Loan Total £25,000 & under £3,354£3,823£7,177 £30,000 £2,416£4,292£6,708 £35,000 £1,478£4,761£6,239 £40,000 £540£5,230£5,770 £45,000 £0£5,288 £50,000 £0£4,788 £55,000 £0£4,288 £60,000 £0£3,788 £62,125 & over £0£3,575 Student living away from home outside London 2013 Combined Support for Living Costs

12_13 What support could I get?

12_13 Bursaries: May link to National Scholarship Programme Depend on circumstances Vary by institution Scholarships: Academic, sport or music Subject specific or generic Vary by institution Scholarships & Bursaries

12_13 May receive extra money or support if you: Have children or adults dependent on you Have a disability or learning difficulty Are a student parent Additional Support

£ 12_13 Applying

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12_13 Applications Apply early, apply online Consent to share: helps with scholarship/bursary provision Only supply evidence if you are asked for it. Check online account before calling to save time

12_13 Applications cont. No need to wait for a confirmed place If unsure of fee amount, select maximum Process in place for students with incorrect fee loan

£ 12_13 Resources

12_ Daily surgeries Announcements on key dates, turnaround times etc. Links to information and guidance materials

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£ Explaining Repayment

12_13 Student Loan Repayment You are eligible for repayment: April after you leave/graduate if full-time, or April 4 years after starting if part-time No repayments until earning over £21,000 pa gross Repayments via 9% of earnings above £21,000 No early repayment charge Any outstanding debt written off after 30 years

12_13 Student Loan Repayment Income each year before taxApproximate monthly repayment Old systemNew system £15,000£0 £16,000£8£0 £18,000£23£0 £21,000£45£0 £24,000£68£23 £27,000£90£45 £30,000£113£68 £33,000£135£90 £36,000£158£113 £40,000£188£143

12_13 Interest Rates Earnings below £21,000 pa Interest is set at Retail Price Index (RPI) Earnings between £21,000 - approx £41,000 Real rate of interest will start to be charged, reaching a maximum of RPI plus 3% Earnings above £41,000 Interest at the full rate of RPI plus 3%

Interest Rates ICR Historical Interest Rates *2.56 is the median – the interest rate was adjusted down four times in 2008/09

12_13 Additional Info A student loan is unlikely to affect your ability to get a mortgage (The Council for Mortgage Lenders ) Mortgage lenders are most interested in your monthly income (ability to repay) Under the new system monthly repayments lower = greater monthly income Students may find they are better off…

12_13 Better off with higher fees? Example 1 (old system): Old system student borrows £21,000 at end of studies (£3,000 per year fees loan x 3 + £4,000 living cost loan per year x 3) Plus interest owes approx £23,000 after studies Starting salary of £24,000 Total repayments = £35,500 (repaying full balance in approx 24.5 years) Assumptions: 2% salary growth, 3% average inflation/interest

12_13 Better off with higher fees? Example 2 (new system): New system student owes £40,000 at end of studies (£9,000 per year fees loan x 3 + £4,300 per year living cost loan x 3) Plus interest owes approx £45,000 after studies Starting salary of £24,000 Total repayments = £22,000 (balance written off after 30 years) Assumptions: 2% salary growth, 3% average inflation/interest

12_13 Student Loan Repayment Income each year before taxApproximate monthly repayment Old systemNew system £15,000£0 £16,000£8£0 £18,000£23£0 £21,000£45£0 £24,000£68£23 £27,000£90£45 £30,000£113£68 £33,000£135£90 £36,000£158£113 £40,000£188£143

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