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Understanding the Basics of Student Finance and Repayments
Gareth Pearse
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Topics to be covered Eligibility – things to consider
An overview of statutory funding - what support is available? Independent Students – when is a student independent? Further Statutory Support – supplementary grants Applying for Student Finance Repayments Other Support – bursary’s, scholarships and hardship funds Introduce topics to be covered;
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Eligibility Course Eligibility Personal Eligibility
Previous Study and ELQ’s
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Course Eligibility Support from the Student Loans Company is only available if the student plans to study a ‘designated course’ such as a; First Degree – BSc, BA, BEd Foundation Degree Higher National Diploma (HND) Higher National Certificate (HNC) Diploma of Higher Education (DipHE) Postgraduate Certificate in Education (PGCE) with QTS Recommendation Integrated Masters Initial Teacher Training The course/institution must meet certain requirements to be eligible to receive funding “designated” such as: - must be at a UK publicly funded institution or a publicly funded course at a private institution It must lead to a higher education qualification such as (the above) Taught courses (some distance courses do attract support) The course/institution must meet certain requirements to be eligible to receive funding “designated”
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Personal Eligibility UK National or have Settled Status
EU national or relevant family member EEA/Swiss Migrant Worker (or relevant family member) Child of a Swiss national or Turkish worker Refugee / subject to Humanitarian Protection (in some cases) Have a ‘Right to Reside’ Home: Must have been ordinarily resident in the UK for 3 years prior to the first day of the first academic year of the course No restrictions on how long they can be in the UK i.e. have citizenship, indefinite leave or right to reside EU National must be ordinarily resident in the EU on the first day of the AY in which they’re applying for support – can potentially be eligible for a maintenance loan if obtained right to reside (5 years) If family member is a MW their status extends to dependents if applying for support under the age of 21 (after this they must obtain this status in their own right) would be assessed as home student Refugee’ if the person, spouse or dependent (under 18) has refugee status, it has not expired, and they are ordinarily resident in the UK on the first day of the AY
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Previous Study and ELQ’s
Students who have studied a HE course previously will have years on course reduced from their entitlement for a new course: OD PrC Students who are looking to study a qualification at the same or lower level as one they already hold could mean they are ineligible for support These rules usually apply to Tuition Fee and Maintenance Loans/Grants Students should still be able to access; Disabled Students’ Allowances (DSA) Parents Learning Allowance (PLA) Childcare Grant (CCG) Adult Dependants Grant (ADG) Example: Jane wishes to study a 3 year Photography course but completed 2 years of a Fine Art course ending in 1998, she did not achieve a qualification. Entitlement to Funding 3 + 1 = 4 – 2 = 2 Jane has 2 years of support available to her, these are allocated to the years closest to graduation and therefore Jane would have to find alternative ways of funding the first year of her Photography degree. Students can generally only receive funding for their first HE qualification, though there are exceptions Students entitlement is calculated as the duration of the course they’re applying for support, gift year, minus years spent on a previous course Student cannot receive funding for an equal or lower level qualification; generally applies to TFL/ML Exception Part-time STEM courses may be eligible Supplementary grants are not subject to these restrictions
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What Support is Available?
Discuss the support available to Full-time undergraduate students from England (and on occasion Wales/NI/SAAS) Tuition Fee Support Cross-nation Fees table Maintenance Loans/Grants Maintenance Loan/Grant amounts
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Tuition Fee Support For all students eligible to support, including EU Nationals Up to £9,250 Non means-tested Paid directly to the institution in 3 instalments No upper age limit May vary across nations Providing they meet the aforementioned eligibility criteria… Varies across nations: Wales = £9,000 maximum if in Wales SAAS students don’t pay TF if in Scotland
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Cross-nation Fees table
Resident Studying England Northern Ireland Scotland Wales Tuition Fee Loan Max £9,250 Tuition Fee Loan Max £9,000 Tuition Fee Loan Max £4,030 Tuition Fee paid by SAAS £1820 Tuition Fee Loan Max £9,250
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Maintenance Loans/Grants
Available to all eligible students – can calculate potential loan here Composed of a non means-tested and means-tested element Different rates paid dependent on: Where the student lives Where the student will be studying Whether they’re in their final year Whether they’re in receipt of Welfare Benefits Whether they’re on a long course or placement/study abroad Paid for living costs; accommodation, books, travel, food etc. Household income is based on prior tax year. So for 2018/19 entry will be all taxable income in the 2016/17 tax year. If income has reduced – CYIA. Household includes partner, parents or a parent and anyone living with them as if they were their spouse or civil partner. i.e. mum and boyfriend live together, both incomes would be included in assessment. All students will receive a NMT loan, with a higher amount dependent on HHI. HH will be parents if under 25 (even if they have a partner and live away from the parental home) unless the meet exemptions as an ‘Independent Student’ Usually paid slightly less in final year Entitled to a higher amount if in receipt of Welfare Benefits; usually mature, independent students or those with a disability
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Maintenance Loans/Grants continued…
Not available to EU students unless: They’ve been ordinarily resident in the UK for 5 years They meet the requirements for ‘Migrant Worker Status’ Is paid termly in three instalments directly to student Higher rate of maintenance loan – Special Support Element – payable in certain circumstances (is not included for benefits purposes): Lone parent with child <20 Deaf and qualifies for DSA In receipt of disability benefits - PIP / DLA / AFIP In receipt of Housing Element of Universal Credit EU students aren’t eligible unless they’ve been ordinarily resident in the UK for 5 years prior to first day of first AY of course Meet MW status requirements, employment not ‘marginal’ or ‘ancillary’ hours to be worked varies depending on effectiveness of employment OR are dependent of a MW under the age of 21 Paid directly to students bank account in-line with start of terms; September/October, January, April/May SSE not included for DWP purposes
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Maintenance Loan/Grant Amounts 2018/19
Where are they studying? SFE SFW (incl. £1,000 WGLG) Elsewhere (London) £11,354 £11,250 (£10,250 loan) Elsewhere (outside London) £8,700 £9,000 (£8,000 loan) Home £7,324 £7,650 (£6,650 loan) SFE does not have maintenance grant for 2016 cohort students onward Minimum in England: London = £5,654 Outside London = £4,054 Home = £3,224 SFW changed system following the Diamond Review; No tuition fee grants All students can access the same amount of funding, including a £1,000 non means-tested WGL grant. The amount of loan vs grant is then determined based on HHI. e.g. a family with a HHI of £65,000 could be eligible to £9,000; £1,000 grant and £8,000 loan Family with a HHI of £6,000 could be eligible to £9,000; £8,100 grant and £900 loan There are no grants for living costs for SFE-funded students starting their courses in 2018/19 Students funded through SFW receive a non means-tested Welsh Government Learning Grant of £1,000, with their loan/grant entitlement being means-tested thereafter
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Independent Students When is a student independent?
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When is a student independent?
When they are 25 or over on the first day of the academic year or; Have no living parents Parents cannot be found/unreasonable to contact them Estranged from their parents Care of a child Married/Civil Partner Care Leaver Self-support for 1095 days prior to first day of the academic year Unreasonable would usually be determined by the HO at risk or ‘no fly’ zones etc. Estranged: had no physical, verbal or written contact with parents for a minimum of 12 months (unless otherwise considered by the SoS) Must have care of a child on the first day of the AY (01 Sept) in order to be independent (can claim GfD’s, though based on partners income) Dependent from parents but dependent on husband/wife Care Leaver, usually as defined under the ‘Children (Leaving Care) Act 2000; as someone who has been in the care of or given accommodation by their Local Authority (LA) for at least 13 weeks before the age of 16. Must not have reconciled with their parents.
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Further Statutory Support
Usually referred to as supplementary grants Parents Learning Allowance (PLA) Childcare Grant (CCG) Adult Dependants Grant (ADG) Disabled Students’ Allowance (DSA) Part-time Student Support
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Parents Learning Allowance (PLA)
Paid directly to the student at the same time as maintenance loan/grant Amounts vary dependent on nation Is means-tested based on partners income (sometimes parent) A child must be financially dependent on the student Not included in benefits calculations Paid in acknowledgement that parent student costs may be higher due to dependents May be based on parents income if the individual is under 25 and gives birth within an academic year SFE must determine who the child is financially dependent upon England = £1,669 Wales = £1,557 Northern Ireland = £1,538 Scotland = £1,305
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Childcare Grant (CCG) Available in England, Wales and Northern Ireland
Can contribute towards up to 85% of childcare costs (OFSTED registered) Paid directly to the student at the same time as maintenance loan/grant Amounts vary dependent on nation Is means-tested based on partners income (sometimes parent) A child must be financially dependent on the student Paid in 3 instalments. Students are asked to estimate CC costs (CCG1) and then CC provider must complete another form (CCG2) to confirm the costs are correct. Any adjustments will then be made Is paid for number of weeks in attendance, however in exceptional circumstances may be payable for 52 weeks Awarding Body Amount for 1 child (p/w) Amount for >2 children (p/w) SFE £164.70 £282.36 SFW £161.50 £274.55 SFNI £148.75 £255
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Adult Dependant Grant (ADG)
Paid directly to the student at the same time as maintenance loan/grant Amounts vary dependent on nation Is means-tested An adult must be financially dependent on the student Is not applicable for adult children The adult dependent is usually a husband, wife, or civil partner…. Or a relative such as parent or grandparent If under 25 the dependent cannot be a partner unless married or civil partnership. Not eligible if the adult dependent is their child; receiving student support; has earnings of more than £3,796 p/a (England) England = £2,925 Wales = £2,732 Northern Ireland = £2,695 Scotland = £2,640
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Disabled Students’ Allowances (DSA)
DSA can help cover extra costs incurred because of a long term illness, mental health problem or other disability DSA is funded through Student Finance and is non-repayable Can help with the cost of: Specialist equipment Non-medical helper support Extra travel costs because of a disability Other disability-related study costs Students will need to pay a £200 excess to access their equipment
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Part-time Student Support
From 01 August 2018 part-time students can apply for a tuition fee and maintenance loan Must be a level 6 (or above course) They must be studying a minimum of 25% intensity of the full-time equivalent course The maintenance loan is proratad based on the number of credits being undertaken in comparison with the full-time course Applications due to open in May 2018 Example: standard AY is 120 credits and maintenance loan is £8,700: if studying 60 credits = £4,350 Not a great deal of info released: regulations and guidance due end of April: issues with DWP (and how maintenance loan to be treated as income) Not eligible for dependents grants
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Applying for Student Finance
Where to Apply Applying Online Applying by Paper
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Where to Apply Student Finance England (SFE)
Student Finance Wales (SFW) Student Finance Northern Ireland (SFNI) Student Awards Agency Scotland (SAAS) Student Finance Services EU Team (SFEU) Deadlines SFE recommend applications are submitted by 25 May 2018 in order to ensure support is agreed for the start of the course 09 Months after the first day of the academic year (01 June for most courses) - Students must apply 09 months after the first day of the academic year, which if starting in September counts as 01 September and therefore deadline is 01 June - SAAS students must have applied by 31st March
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Applying Online Set up an online account using an email address
To apply applicants will need their: Passport number NI Number Residence history Previous study details Course details (does not have to have a confirmed place) Bank details Applicants must sign and return their declaration forms to Student Finance, agreeing to the loan T&C’s, in order for their funding to be released (e-signature from 25 March 2018)
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Applying by Paper Students can also apply via paper forms, they will need to complete the form relevant to their circumstances New students in England – PN1 form Household income information – PFF2 form (to be completed by parent/partner) Childcare Grant estimations – CCG1 form Current (Tax) Year Income Assessment – CYIA form Disabled Students’ Allowance’s – DSA1 or DSA slim (if has CRN)
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Repayments SFE/SFW (Plan 2) Repayment tables SFNI/SAAS (Plan 1)
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SFE/SFW (Plan 2) Interest charged at a maximum of inflation + 3%
Repayments are automatically deducted from gross pay Repayments begin once earning above £21,000* at a rate of 9% Outstanding loan balance is cancelled after 30 years or if permanently disabled and unfit for work * Expected to change from 06 April 2018 as per Parliamentary statement HCWS145 – subject to approval Whilst studying inflation plus 3% Charged at RPI if earning under £21,000 RPI+ a percentage of 3% until £41,000 >£41,000 = RPI+3% Will change to £25,000 - £45,000 when confirmed.
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Repayments based on £21,000 threshold (9%)
Earnings Annual Repayment Monthly Repayment £21,000 £0 £25,000 £360 £30 £30,000 £810 £67.50 £40,000 £1,710 £142.50 Repayments based on £25,000 threshold (9%) Earnings Annual Repayment Monthly Repayment £21,000 £0 £25,000 £30,000 £450 £37.50 £40,000 £1,350 £112.50
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SFNI/SAAS (Plan 1) Repayments are automatically deducted from gross pay Repayments begin once earning above £17,775* at a rate of 9% Interest is based on RPI Outstanding loan balance is cancelled after 35 years or if permanently disabled and unfit for work (25 years for SFNI) * Due to rise to £18,330 from 06 April 2018 Currently interest of 1.5%
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Other Support Bursary’s Scholarships Hardship Funds Benefits
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Bursary’s Many universities offer bursaries to students from low income / participation backgrounds These vary between institutions: Bath Spa University = £3,500 UWE, Bristol = £2,000 (enhanced) Oxford = £3,700 p/a (maximum) Bursary’s are non-repayable grants and are sometimes paid ‘in kind’ There is often extra support available for independent students such as Care Leavers or those estranged from their parents
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Scholarships Scholarships are usually based on academic or extra-curricular performance They vary in the number available and the size of the award They may be awarded by the institution or partners/alumni Some Universities may partake in the ‘Unite Foundation Scholarship’ scheme for care experienced or estranged students
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Hardship Funds Most Universities will operate some form of hardship funding The criteria varies between institution to best fit their student demographic Students can apply to these funds when statutory support and other funding such as part-time work is not sufficient to support themselves These funds are finite so students should apply as soon as they find themselves in difficulty Most will consider exceptional essential expenditure
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Benefits Full-time students on a course of advanced education (usually above L3) are ineligible to claim most benefits There are exceptions which allow students to claim such as those that are: Single parents In receipt of PIP/DLA and satisfied the Work Capability Assessment Are deaf and qualify for Disabled Students’ Allowances Students can claim Working Tax Credits and Child Tax Credits whilst they are students There are different rules and regulations that govern Universal Credit which is being rolled out nationally
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Useful Links www.practitioners.slc.co.uk
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Any Questions
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