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13/14 STUDENT FINANCE 2013/14
13/14 SESSION CONTENT General eligibility The student finance package Repayments SFE practitioner resources Application information
13/14 GENERAL ELIGIBILITY
13/14 Settled status – can live in the UK without any Home Office restriction Ordinarily resident in England on the first day of the first academic year of their course Been living in the UK for the three years immediately prior to this date Tuition fee support only for European Union students who don’t meet the residency requirements Exceptions exist for certain groups of students GENERAL RESIDENCY REQUIREMENTS
If the student, their spouse, civil partner or parent/step-parent are recognised by the government as a refugee and have lived in England since this status was awarded If the student, their spouse, civil partner or parent/step-parent have been granted Humanitarian Protection to stay in the UK by the Home Office, resulting from a failed asylum application, and meet the standard ‘ordinary’ and 3 year residence requirements EEA /Swiss migrant workers and the children of Swiss and Turkish workers may also qualify for Tuition Fee Loans and additional support if they meet the set employment or residency requirements GENERAL RESIDENCY – SOME EXCEPTIONS ! If there’s any doubt surrounding their residency status or eligibility for funding, students should call the SFE helpline
RESIDENCY – 13/14 POLICY CHANGES From AY 13/14 applications from Armed Forces personnel or their family members will be processed by the funding body in the UK territory where they lived prior to enlisting Unless subsequent to this they have established permanent residence in another administration (practice already in place in Wales & Scotland) Additional requirement for the residency category ‘children of Swiss Nationals’ The parent(s) of the ‘child of a Swiss national’ must be exercising their free movement rights in the UK on the first day of the first academic year of the course for the student to be eligible to apply for the full package of support
Course eligibility Courses must be of a certain type and be lead to a recognised higher-education qualification including: University or college eligibility The HEI must be publicly funded (by the UK government) or privately funded but running individual courses that get public funding from the government. First degree (BSc, BA, BEd) Foundation Degree (FdA, FdSc, FdEng) Higher National Diploma or Higher National Certificate (HND/C) Diploma of Higher Education (DipHE) Postgraduate Certificate of Education (PGCE) COURSE & UNIVERSITY/COLLEGE ELIGIBILITY
General rule – Tuition Fee Loan available for full length of the student’s first undergraduate course, plus one additional year if needed e.g. if the student changes course If a student has previously studied in the UK, they may still be eligible for a Maintenance Loan if they don’t have an equivalent or higher-level qualification or they’re studying an ‘exception course’ leading to a professional qualification* Individual circumstances (including any extenuating circumstances) can affect eligibility PREVIOUS STUDY RULES ! *Medical Doctor, dentist, veterinary surgeon, architect, social worker, course attracting means tested Healthcare Bursary (NHS)
13/14 STUDENT FINANCE 2013/14
13/14 Scholarships & Bursaries STUDENT FINANCE PACKAGE 13/14 Tuition Fee Loan Maintenance (living cost) Support Additional Support The Student Finance Package
13/14 TUITION FEES & LOANS
13/14 Universities/colleges can charge a tuition fee of up to £9,000 a year but need to demonstrate increased efforts in widening participation and justification for any tuition fees over £6,000* The tuition fees set will be decided by the university, including whether it charges different tuition fees for different courses The average tuition fee for 2012 was around £8,657 up from the initial £7,500 expected government average level (Independent & Times Higher Education) *Presented in OFFA approved Access Agreement TUITION FEE LOAN – FULL TIME
13/14 Students on sandwich years/study years abroad will be subject to lower tuition fee limits Current levels, up to a basic amount of £3,000 or up to a £4,500 higher amount for students at institutions with an accepted access agreement Students at private institutions not getting funding from HEFCE but offering courses designated by BIS will be entitled to borrow up to £6,000 to cover their tuition fee costs If the private institution is charging more, the student will need to self-fund the remainder TUITION FEES – FULL TIME
Eligible students won’t have to pay for their tuition fees up front The non-means tested Tuition Fee Loan (doesn’t depend on household income) is available to cover the tuition fee set by the HEI - up to £9,000 max for full-time courses (£6,000 at private institutions) The Student Loans Company will pay the university or college directly in instalments across the academic year Not compulsory - students can also*: Pay full tuition fees upfront to their university or college, or Pay part of the tuition fees and take Tuition Fee Loan for the rest * To be agreed with the university or college PAYING THE TUITION FEE
Tuition Fees will be paid to a university or college at three points in the academic year. Liability date % of Tuition Fee Loan student will be liable for First day of Term 1*25% First day of Term 225% First day of Term 350% PAYING THE TUITION FEE ! Interest on the loan will be charged from day payment is made to the university or college, not from the liability date. *Two weeks after Term 1 start date for part-time courses
13/14 From September 2012 new part-time students can apply for a non- means tested Tuition Fee Loan which replaces the means tested Fee Grant and Course Grant (continuing students can still apply for these grants) The maximum universities or colleges can charge for new students on part-time courses is £6,750 a year Students starting designated part-time courses provided wholly by a private institution can apply for a Tuition Fee Loan of up to £4,500 The amount charged will depend on their course intensity. (Minimum 25% Maximum 75%) Students must complete their part-time course in no more than 16 years PART-TIME STUDENTS
Part-time students won’t be entitled to a loan or grant towards living costs but can apply for Disabled Students’ Allowances (DSAs) Part-time students from a low-income household may get support through the National Scholarship Programme and should look into other bursaries/scholarships offered by universities or colleges Part-time study & benefits Part-time students can usually still claim benefits that depend on household income (means-tested benefits) such as: Income-based Jobseekers Allowance, Housing Benefit, and Council Tax Benefit if unemployed PART-TIME STUDENTS ! Given the complexity of benefits, students should always contact their local Jobcentre Plus for eligibility assessment.
13/14 MAINTENANCE SUPPORT
13/14 The majority of the repayable Maintenance Loan will be available to all eligible students. 65% of the total loan is not based on household income. The amount of Maintenance Loan available will be linked to where a student lives and studies while in higher education. MAINTENANCE LOAN
Full-year Student 65% not based on household income 35% based on household income Maximum Loan Parental home£2,843£1,532£4,375 Elsewhere£3,575£1,925£5,500 London£4,988£2,687£7,675 Overseas£4,247£2,288£6,535 MAINTENANCE LOAN – 13/14 RATES Additional loan is available for each extra week of study for students attending their course beyond 30 weeks. !
13/14 The maximum non repayable Maintenance Grant in 2013/14 is £3,354 The grant a student gets is solely dependent on household income Household income thresholds: Students from households with an income of up to £25,000 will be entitled to the maximum grant of £3,354 Students from households with incomes of up to £42,611 will be entitled to a partial grant MAINTENANCE GRANT
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 MAINTENANCE SUPPORT
13/14 SCHOLARSHIPS & BURSARIES
13/14 Bursaries: May be eligible for National Scholarship Programme Linked to personal circumstance and often, income level Vary by institution Scholarships: Linked to academic results or ability Can be subject specific Limited in numbers SCHOLARSHIPS & BURSARIES ! Students should check university websites and ask at open days for information on bursaries and scholarships – what’s available as well as how and when to apply.
13/14 ADDITIONAL SUPPORT
13/14 Helps towards the additional costs a student may face as a result of their disability, long-term health condition, mental-health condition or specific learning difficulty In addition to the standard student finance package Don’t have to be repaid Don’t depend on household income Looks at the specific needs of the individual in relation to their circumstances and studies DISABLED STUDENTS’ ALLOWANCES ! Students need to be aware the DSAs application process can take up to 14 weeks so they should apply early!
Students may be eligible for DSAs if they have any of the following*: A mental-health condition, such as anxiety or depression A specific learning difficulty, such as dyslexia or dyspraxia A developmental disorder, such as autism, ADHD/ADD A long-term health condition or progressive medical condition such as Multiple Sclerosis, Cancer or HIV A sensory impairment which could affect the ability to see or hear DISABLED STUDENTS’ ALLOWANCES - ELIGIBILITY ! *Other conditions not mentioned on this list may also be covered by Disabled Students’ Allowances.
Students can get DSAs if they: are on a full-time or part-time undergraduate course including Open University and other distance-learning courses; or are on an eligible full-time or part- time postgraduate course including Open University and other distance-learning courses; and have a disability, long-term health condition, mental-health condition or a specific learning difficulty which affects their ability to study. DISABLED STUDENTS’ ALLOWANCES - ELIGIBILITY ! Generally, any previous study won’t affect eligibility for DSAs, even if students have received financial support.
Allowance Part-time maximum support Full-time maximum Support Frequency of payment Non-medical personal helper £15,390£20,520Annual Specialist equipment£5,161 Duration of course Other disability-related expenditure £1,293£1,724Annual Disability-related travel No limit – reasonable spending can be claimed DSAs rates 2013/14 ! For both full-time and part-time postgraduate students there’s a single allowance of up to £10,260 a year. DISABLED STUDENTS’ ALLOWANCES
13/14 Childcare Grant Based on 85% of actual registered/approved childcare costs up to maximum of: £ per week for one child £255 per week for two or more children Parents’ Learning Allowance Help with course-related costs for students with dependent children Amount received will be between £50 and £1,508 Adult Dependants’ Grant Normally for the student’s partner. Can be for another adult who is financially dependent on the student where the adult’s net income isn’t more than £3,796 p.a. Maximum grant available: £2,642. DEPENDANTS’ GRANTS ! Dependants’ grants are income related. Universities may offer additional support to students with childcare/caring responsibilities.
DEPENDANTS’ GRANTS – CHANGES TO ASSESSMENT Making use of the same income information for the core assessment and the targeted assessment Using the residual prior financial year income for partners and other adult dependants and the net income from the prior financial year for dependent children No longer use applicant’s estimates of ‘recurring financial obligations’ in the financial assessment and instead use standard disregards (applies to students starting a new course from September 2013) Existing disregards are to be increased, to help mitigate the impact of this change Further information can be found on:
DEPENDANTS’ GRANTS – CHANGES TO ASSESSMENT All new and returning students in AY 13/14 are subject to the prior financial year income change and only new students in AY 13/14 are subject to the new standard disregards Returning students in AY 13/14 will continue to provide their estimates of their recurring financial obligations From AY 13/14 a cap is to be applied to the amount of Childcare Grant payable in the first payment period of an academic year where an applicant does not provide details of a childcare provider. (£115 per week, or 85% of estimated costs, whichever is less) Once the applicant has supplied childcare provider details, a reassessment will be carried out and any additional Childcare Grant entitlement will be paid to the student
13/14 STUDENT LOAN REPAYMENT
12_13 13/14 Repayments won’t start until the students income is over £21,000 a year (£1,750 a month). (On entering repayment, this threshold will scale annually in line with earnings) Full-time students will begin to repay in the April after graduating from/leaving their course (From 2016) Part-time students can begin to repay in the April 4 years after they’ve started their course (If income is over £21,000) Repayments will be 9% of income over £21,000 and if in employment will be deducted automatically from salary through the HMRC tax system for most students If income falls below £21,000 repayments will stop STUDENT LOAN REPAYMENTS
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 written off 30 years after entering repayment.
The interest charged will vary during study and depending on earnings after graduation. STUDENT LOAN REPAYMENT – INTEREST RATES ! Students can make extra voluntary repayments at any time. During study until entering repayment Interest rate: Retail Price Index (RPI) +3% Income: Below £21,000 Interest rate: RPI Only Income between: £21,000 - £41,000 RPI plus some amount between 0% and 3% Income: Above £41,000 Interest rate: Retail Price Index (RPI) +3%
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 £67 £33,000 £129 £90 £36,000 £151 £113 STUDENT LOAN REPAYMENT – COMPARISON ! The first earnings-linked rise in repayment thresholds for existing students occurred in Up from £15,000 to £15,795.
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. 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
STUDENT LOAN REPAYMENT – DEDICATED WEBSITE
13/14 STUDENT FINANCE ENGLAND RESOURCES
12_13 13/14 Out with the old…….. Since launching the SFE service we have produced a range of resources each academic year, aiming to: Provide practitioners clear policy based information, both for their own knowledge and for assisting students make informed decisions on HE funding. Engage with and communicate key messages to students and their families. Academic Year 2010/11 Academic Year 2011/12 STUDENT FINANCE ENGLAND RESOURCES
Fact Sheets & Quick Guides Range of Videos Application Demonstration Website Resources …..IN WITH THE NEW!! – CURRENT RESOURCES
PRACTITIONERS WEBSITE – HOME OF SFE RESOURCES
Available for download and print pre-order: How and when to apply Disabled Students’ Allowances (DSAs) Key Steps What, how and when to repay NEW! Student finance explained: For parents of students QUICK GUIDE SERIES
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 Dependants’ Grants Information for parents of students
New animation: Student Finance Explained, with your host Bob Bamboo! (Featuring prospective students’ views and concerns, with information on student finance) ANIMATIONS & GAMES Teacher’s Pets: An interactive learning tool that teaches students the basics of student finance. Play online at:
13/14 APPLICATION INFORMATION
12_13 13/14 Applications should be made as soon as possible to ensure payments can be made at start of the academic year Applying online is the quickest and easiest way for students and parents/sponsors Only supply additional evidence to support an application if we ask for it In the first instance: Student identity is checked using passport number supplied online and verified through IPS Household income is verified through submitted National Insurance numbers via HMRC APPLICATIONS – KEY MESSAGES
Students don’t need to wait for a confirmed offer: they should apply with their first choice of university/college Details can be changed online if necessary (change of course etc.) Consent to share information (helps with scholarship/bursary provision) Students will be assessed for non-means tested support if there are any delays in getting household income information If unsure of fee amount needed, students should select the maximum. The fee loan paid will never exceed the actual level charged by the HEI APPLICATIONS – KEY MESSAGES
FOR MORE INFORMATION AND TO APPLY Launched 17 th October! https://www.gov.uk/studentfinance
FOR A RANGE OF HELPFUL TOOLS AND GUIDANCE
12_13 13/14 Important they make the right university and course choice, not letting fee levels affect their decision. Future repayments are linked to a student’s income, not what they borrow Research all finance available – especially bursaries & scholarships Apply online & on time – no need to wait for a confirmed place Apply for DSAs or other additional support as soon as possible Ensure all details are correct before submitting an application, and let us know of any changes Check and update account online where possible. KEY MESSAGES FOR STUDENTS