1. Student Finance 2013/14

2. What support could students get?

3. Tuition Fee Loan Students do not have to pay for their tuition fees upfront, they can apply for a non means tested tuition fee loan. The amount a student gets depends on the cost of their fees – up to max £9,000 in 2013/14 (£6,000 loan limit for private providers). The average tuition fee in 2012 was £8,657. Students repay the loan once they have graduated and when they are earning. The Student Loans Company pay the fees directly to the University or College.

4. Living Cost Support Maintenance Loan All students can apply for a Maintenance Loan. 65% of which is not based on household income. The remaining 35% is means tested. A loan of up to £5,500 is available for students who live away from home and study at a university outside of London A larger loan of up to £7,675 is available for students who live away from home and study at a university in London A loan of up to £4,375 is available for students who stay living at home whilst at university

5. Living Cost Support Maintenance Grant Extra help with living costs for some students How much students could get depends on their household income Maximum grant for 2013/14 is £3,354 Households with income below £25,000 will get it all; households with income up to £42,611 will be entitled to a partial grant.

6. Living Cost Support Maintenance Loan & Grant – away from home outside London Household incomeNon repayable grantLiving cost loanTotal £25,000 or less£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 £42,611£50£5,475£5,525 £42,875£0£5,500 £50,000£0£4,788 £60,000£0£3,788 Over £62,500 £0£3,575

7. Additional Support Extra support is available for students who have a disability, long term health condition, mental health condition or specific learning difficulty. This support is not dependent on household income. Extra support is also available if a student has adults or children who are dependent on them.

8. Bursaries and Scholarships Bursaries: Students may be eligible for The National Scholarship Programme (NSP). These are linked to personal circumstances and, often income level. Bursaries vary between each institution. Scholarships: Linked to academic results or ability and can be subject specific. Scholarships are limited in number. Students need to do their research for each individual institution and will need to apply by the published deadlines

9. What about repayment? Students are eligible for repayment the April after they graduate. Repayments are collected by HMRC tax system. Students don’t start repaying anything until they earn over £21,000 pa (£1,750 per month). They repay 9% of what they earn above £21,000. Outstanding repayments written off after 30 years.

10. Loan Repayment Illustrative comparison (rounded up to the nearest £) Income each year before tax Approximate monthly repayment OldNew £16,000£1£0 £18,000£16£0 £21,000£39£0 £24,000£61£23 £27,000£84£45 £30,000£106£67 £33,000£129£90 £36,000£151£113

11. While studying; rate of inflation (RPI + 3%) Then a variable rate depending on graduate’s earnings: - Earnings <£ 21,000 interest will be RPI Earnings between £ 21,000 & £ 41,000 interest between RPI and RPI + 3% on a gradual scale based on earnings Earnings above £ 41,000 interest will be RPI + 3% You can pay off some or all of your loan at any time without an extra charge. If a student leaves their course early, they still have to repay their student loan. If a student goes abroad for more than 3 months they need to fill in an overseas income assessment form – they will find you! Rates of Interest

12. Additional Information

13. According to BIS Q & A document: - –A student loan is very unlikely to affect a student’s ability to get a mortgage (The Council for Mortgage Lenders ) –Mortgage lenders are most interested in monthly income (‘ability to repay’) –Under the new system monthly repayments lower = greater disposable income Additional Information

14. IAG Resources

15. Online support www.gov.uk/studentfinance www.studentfinanceengland.co.uk

16. Any Questions ?