1. Sixth Sense Blair Campbell Student Finance IAG Team 13 May 2013

2. Objectives Changes this year, full-time and part-time A strong grasp of repayment Where to get further information Discussion common areas of uncertainty and difficult questions

3. But first...

4. Q: How much does this textbook cost? A: £46.99 (Pearson education)

5. Q:How much do these noodles cost? A:11p

6. Q:How much does a 16-25 railcard cost? A:£28 for 1 year, £65 for 3 years

7. Q:What is the average cost of one of these? A:£3.21 (£3.03 for Ale) (Source: CAMRA)

8. Q:What is the approx average cost of accommodation? A:£117.67 per week (NUS 2012)

9. Why is this important? “We did a YouGov poll of 1,000 school-age students in Clearing and 44% thought they had to pay their fees upfront. That is terrifying”

10. Student Finance in 2014/15

11. Key Points for 2014/15 Tuition Fees remain at £9,000 max Small (1%) increase in maintenance support – e.g. grant up from £3,354 to £3,387 max Continued transition to Gov.uk

12. www.practitioners.slc.co.uk 14/15 APPLICATION INFORMATION

13. 12_13 www.practitioners.slc.co.uk 14/15 Apply as soon as possible – deadline is 31 May Don’t need a confirmed offer, apply with first choice university/college Apply online through GOV.UK Only supply additional finance/ID evidence if we ask for it Details can be changed online if necessary (Change of course etc) If unsure of tuition fee amount needed, select maximum APPLICATIONS – KEY MESSAGES

14. www.practitioners.slc.co.uk FOR MORE INFORMATION AND TO APPLY www.gov.uk/studentfinance

15. www.practitioners.slc.co.uk THE STUDENT ROOM - FOR FURTHER INFORMATION www.thestudentroom.co.uk/studentfinance

16. www.practitioners.slc.co.uk 14/15 Scholarships & Bursaries STUDENT FINANCE PACKAGE Tuition Fee Loan Maintenance (Living Cost) Support Additional Support The Student Finance Package ! *Figures used in this section are subject to final 2014/15 policy approval and may change

17. www.practitioners.slc.co.uk 14/15 TUITION FEES & LOANS

18. www.practitioners.slc.co.uk Up to £9,000 per year (£6,750 part time) Maximum loan depends on fee charged Optional - take all, part or none of fee loan Average fee in 2012 was around £8,500 Higher fees ≠ higher cost TUITION FEE LOAN – FULL TIME

19. www.practitioners.slc.co.uk 14/15 MAINTENANCE SUPPORT

20. www.practitioners.slc.co.uk Where Students Live & StudyMaximum Loan Available Parental Home Live at home £4,418 Elsewhere Live away from home and study outside of London £5,555 London Live away from home and study in London £7,751 Overseas Study overseas as part of a UK course £6,600 MAINTENANCE LOAN – 2014/2015 RATES* Additional loan is available for each extra week of study for students attending their course beyond 30 weeks !

21. www.practitioners.slc.co.uk 14/15 The Maintenance Grant doesn’t have to be repaid How much you get depends on household income (100% means tested) Household income thresholds for 2014/2015: Up to £25,000 can - maximum grant of £3,387* Up to £42,611 - partial grant *Pending final policy approval MAINTENANCE GRANT

22. www.practitioners.slc.co.uk 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 £42,611£50£5,475£5,525 £42,875£0£5,500 £50,000£0£4,788 £60,000£0£3,788 £62,125 & over£0£3,575 Student living away from home, outside London 2013/14 COMBINED LOAN AND GRANT EXAMPLE

23. www.practitioners.slc.co.uk 14/15 SCHOLARSHIPS & BURSARIES

24. www.practitioners.slc.co.uk 14/15 Bursaries: Could be available through National Scholarship Programme Linked to personal circumstance and often, household income Vary by university or college Scholarships: Can be linked to academic results or ability in sport, music etc.. Subject specific or generic Limited in numbers SCHOLARSHIPS & BURSARIES ! Students should check university websites and ask at open days for information on bursaries and scholarships – what is available and how/when to apply

25. www.practitioners.slc.co.uk Household income under £25k - assessed by SLC Ordinary resident in England Applied for means tested maintenance support Application automatic via information supplied to SLC Year 1 - Fee Waiver £3,500 Accommodation Bursary £1,000 Year 2+ - Income related university bursary up to £2,000 Up to 374 Awards Over 550 Awards Year 1 Only – Fee Waiver £7,000 Cash Bursary £1,000 & £1,000 on ‘university account’ for use on other costs (accommodation, books etc..) On full-time undergraduate course with £9,000 fee Ordinary resident in England, household income under £42k Household in low participation region as identified by HEFCE Eligibility checked via UCAS and student finance application Up to 504 Awards HOW MANY £9,000 over three years £3,000 can be taken cash, Example - £2,000 fee waiver & £1,000 cash or accommodation discount per year THE OFFER SLC assessed household income under £25k Have made university firm choice through UCAS Meet one of the universities set under represented criteria Application to be made direct to university TO QUALIFY NATIONAL SCHOLARSHIP OFFERS – 13/14 EXAMPLES

26. www.practitioners.slc.co.uk 14/15 ADDITIONAL SUPPORT

27. www.practitioners.slc.co.uk 14/15 ADDITIONAL SUPPORT Extra money or support may be available to students if they; Have children or adults dependent on them Have a disability, long-term health condition, mental-health condition or specific learning difficulty Studying an NHS or Social Work course NHS courses include; Nursing, midwifery, physiotherapy, chiropody, dietetics, radiography, occupational therapy, the later stages of medicine and dentistry ! For further information and applications students should visit: www.nhsbsa.nhs.uk/students

28. www.practitioners.slc.co.uk 14/15 STUDENT LOAN REPAYMENT – THE REAL COST

29. 12_13 www.practitioners.slc.co.uk 14/15 Nothing to pay until income is over £21,000 a year (£1,750 pm) gross - threshold will rise annually in line with average earnings increase Full time students will repay from April after graduating from/leaving their HE course (from April 2016 at the earliest) Part time students will repay from April 4 years after they started their course, or April after they leave their course (from April 2016 at the earliest, if income is over £21,000) Repayments are 9% of income earned over £21,000 If income falls to £21,000 or below repayments will stop STUDENT LOAN REPAYMENTS

30. 12_13 www.practitioners.slc.co.uk 14/15 Any remaining balance cleared 30 years after entering repayment process No penalties for early repayments ‘A student loan is very unlikely to affect your ability to get a mortgage’ (The Council for Mortgage Lenders) Mortgage lenders are more interested in your spare monthly income (‘ability to repay’) STUDENT LOAN REPAYMENTS

31. www.practitioners.slc.co.uk 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 STUDENT LOAN REPAYMENT – THE FIGURES ! Any outstanding loan balance will be cleared 30 years after entering repayment.

32. www.practitioners.slc.co.uk There will be a variation in the interest rate attached to a students loan during study and when earning following graduation: STUDENT LOAN REPAYMENT – INTEREST RATES During study until entering repayment Interest rate is: Retail Price Index (RPI) +3% Earnings: Below £21,000 Interest rate is: Set at RPI Only Earnings Between: £21,000 - £41,000 RPI plus some amount between 0% and 3% Earnings: Above £41,000 Interest rate is: Retail Price Index (RPI) +3%

33. www.practitioners.slc.co.uk INTEREST RATES

34. www.practitioners.slc.co.uk INTEREST RATES

35. www.practitioners.slc.co.uk Gross Income Old System Monthly Repayment New System Monthly Repayment £16,000 £1 £0 £18,000 £16 £0 £21,000 £39 £0 £24,000 £61 £23 £27,000 £84 £45 £30,000 £106 £68 £33,000 £129 £90 £36,000 £151 £113 STUDENT LOAN REPAYMENT – COMPARISON ! Repayment for thresholds for existing students up from £15,000 to £15,795, and will rise again to £16,365 this April

36. www.practitioners.slc.co.uk Example 1 Old System Student 3 year course, £3,000 a year fees £4,000 a year maintenance loan 25 year write off period Owes £23,000 at end of studies, including interest Starting Salary of £24,000 Total Repayments = £35,500 Repay full balance in 24.5 years STUDENT LOAN REPAYMENT – COMPARISON ! Assumptions: 2% salary growth, 3% average inflation. Based on a report by HEPI on the Government White Paper, available here.here Example 2 New System Student 3 year course, £9,000 a year fees £4,300 a year maintenance loan 30 year write off period Owes £45,000 at end of studies, including interest Starting Salary of £24,000 Total Repayments = £22,000 Balance written off after 30 years

37. www.practitioners.slc.co.uk Gross Income Old System Monthly Repayment New System Monthly Repayment £16,000 £1 £0 £18,000 £16 £0 £21,000 £39 £0 £24,000 £61 £23 £27,000 £84 £45 £30,000 £106 £68 £33,000 £129 £90 £36,000 £151 £113 STUDENT LOAN REPAYMENT – COMPARISON ! This year will see the first earnings linked rise in repayment thresholds for existing students. Up from £15,000 to £15,795.

38. www.practitioners.slc.co.uk www.studentloanrepayment.co.uk STUDENT LOAN REPAYMENT – DEDICATED WEBSITE

39. www.practitioners.slc.co.uk 14/15 RESOURCES AND FURTHER INFO

40. 12_13 www.practitioners.slc.co.uk 14/15 www.practitioners.slc.co.uk PRACTITIONERS WEBSITE

41. www.practitioners.slc.co.uk APPLICATION DEMO – ASSIST AND SUPPORT STUDENTS

42. www.practitioners.slc.co.uk FACT SHEETS Comprehensive suite of factsheets covering key areas of student finance, including: Full-Time and Part-Time Support Eligibility, Applications and Repayments Disabled Students’ Allowances Care Leavers, Study Abroad and Other Support Students with Dependants Information for Parents of Students

43. www.practitioners.slc.co.uk How and when to apply Disabled Students’ Allowances (DSAs) Key Steps Dependants Grants What, how and when to repay Student finance explained: For parents of students QUICK GUIDE SERIES – DOWNLOAD OR ORDER

44. Blair Campbell blair_campbell@slc.co.uk www.practitioners.slc.co.uk