1. Tuition Fees and Student Finance 2012-13 A summary of the presentations made by Student Finance England reps, & Peter Boursnell, Brent Aimhigher Coordinator UCAS Annual Conference February 2012

2. Overview  Update on Tuition Fees  Student loan from 2012  What does it mean for you?

3. Government claims the new arrangements will ensure …  all graduates will pay less per month than they do under the current system.  all outstanding repayments will be written off after 30 years  around a quarter of graduates, those with the lowest lifetime earnings, will pay less than under the current system. The Browne Report suggested that only the top 40% of earners on average will pay back the full amount of their loan over the 30 year repayment period. This percentage was based on its recommendations and may be different under the government’s proposals.

4. Important things to remember  No up front payments made  No payments at all until graduate earns £21,000  9% earnings above the threshold are collected for repayment  Loan written off after 30 years

5. 2011/122012/13* Tuition Fee Loan (“Graduate Contribution”) Max £3375 Two tiers: max £6,000 or £9,000 £9000 only in exceptional circumstances Fee Loans for part-time courses if intensity 25% + Maintenance Loan Variable amounts in 3 bands Means tested Variable amounts in 3 bands – details to be confirmed Loans increased for household incomes from £42K - £60K Not available to part-time students Maintenance Grant Max £2906 £25K / £50K thresholds Max £3,250 - £25K / £42K thresholds Not available to part-time students HEI Bursary£338+ for those on full grant paying full fees New £150m National Scholarships Programme – obligatory for HEI to participate if fees exceed £6,000 ApplicationSeparate application process post UCASNo details yet Repayment 9% of earnings over £15K threshold (uprated annually in line with inflation from April 2012) Interest inflation linked (currently 1.5%) Written off after 25 years 9% of earnings over £21K threshold (uprated annually in line with earnings from April 2016) Interest £21k - £41K - Tapered inflation RPI + 3% Written off after 30 years Early repayment arrangements being considered *Please note that these are ONLY proposals: detailed decisions have yet to be taken, and the package of support available to 12/13 entrants will not be announced until later in 2011 Summary of Proposals

6.  Repayments are collected through tax system, starting April after graduation  Currently; only repay if earning above £15,000 per annum or £1,250 per month gross  Proposed; only repay if earning above £21,000 per annum or £1,750 per month gross  9% earnings above threshold are collected for repayment  Loans taken A/Y 06/07 or after written off after 25 years  Loans taken A/Y 12/13 or after written off after 30 years Loan Repayment

7. Case Studies NB: The following figures are calculations made by the presenter, they are not official figures

8. Graduates on salary of £21,000 Student starting University in 2011Student starting University in 2012 Under the CURRENT Fees arrangementsUnder the New Fees arrangements Tuition Fees: £3,375 per yearTuition Fees: £9,000 per year Total loan for 3 year course: £10,125Total loan for 3 year course: £27,000 Student finishes degree in June 2014 (takes a Gap year, travelling the world). Student finishes degree in June 2015 Student starts working in Sept 2015 Both students on a starting salary of £21,000 Student pays 9% of earnings above £15k = £10 per week (approx) Student pays 9% of earnings above £21k = £0 per week (Nothing) Take home pay after tax and NI would be £322 per week (estimate) £312 per week after loan payment (estimate) Take home pay after tax and NI would be £322 per week (estimate) Note: the £10,125 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same. Note: the £27,000 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.

9. Graduates on salary of £24,000 Student starting University in 2011Student starting University in 2012 Under the CURRENT Fees arrangementsUnder the New Fees arrangements Tuition Fees: £3,375 per yearTuition Fees: £9,000 per year Total loan for 3 year course: £10,125Total loan for 3 year course: £27,000 Student finishes degree in June 2014 (takes a Gap year, travelling the world). Student finishes degree in June 2015 Student starts working in Sept 2015 Both students on a starting salary of £24,000 Student pays 9% of earnings above £15k = £16 per week (approx) Student pays 9% of earnings above £21k =£5 per week (approx) Take home pay after tax and NI would be £365 per week (estimate) £349 per week after loan payment (estimate) Take home pay after tax and NI would be £365 per week (estimate) £360 per week after loan payment (estimate) Note: the £10,125 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same. Note: the £27,000 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.

10. Graduates on salary of £30,000 Student starting University in 2011Student starting University in 2012 Under the CURRENT Fees arrangementsUnder the New Fees arrangements Tuition Fees: £3,375 per yearTuition Fees: £9,000 per year Total loan for 3 year course: £10,125Total loan for 3 year course: £27,000 Student finishes degree in June 2014 (takes a Gap year, travelling the world). Student finishes degree in June 2015 Student starts working in Sept 2015 Both students on a starting salary of £30,000 Student pays 9% of earnings above £15k = £26 per week (approx) Student pays 9% of earnings above £21k = £16 per week (approx) Take home pay after tax and NI would be £448 per week (estimate) £422 per week after loan payment (estimate) Take home pay after tax and NI would be £448 per week (estimate) £432 per week after loan payment (estimate) Note: the £10,125 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same. Note: the £27,000 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.

11. Graduates on salary of £40,000 Student starting University in 2011Student starting University in 2012 Under the CURRENT Fees arrangementsUnder the New Fees arrangements Tuition Fees: £3,375 per yearTuition Fees: £9,000 per year Total loan for 3 year course: £10,125Total loan for 3 year course: £27,000 Student finishes degree in June 2014 (takes a Gap year, travelling the world). Student finishes degree in June 2015 Student starts working in Sept 2015 Both students on a starting salary of £40,000 Student pays 9% of earnings above £15k = £43 per week (approx) Student pays 9% of earnings above £21k =£33 per week (approx) Take home pay after tax and NI would be £587 per week (estimate) £544 per week after loan payment (estimate) Take home pay after tax and NI would be £587 per week (estimate) £554 per week after loan payment (estimate) Note: the £10,125 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same. Note: the £27,000 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.

12. Conclusions  Think seriously about applying to university: - If you do not see yourself in graduate employment after university, there may not be much point in going at all! - All the research shows that graduates are, on average, happier, healthier and wealthier than the rest of the population! - Make sensible choices to ensure that you get value for money. UNITSTATS. - When you get there, demand value for money!

13. Conclusions cont.  Although you will probably be paying more overall for your university studies  You do not have to make any up-front payments  Your rate of payment will be less than students currently pay  If you go into graduate employment, monthly repayments will be well within your means.  Rather than a loan (and therefore a debt) it makes more sense to see tuition fees as a graduate tax.  In 1970s when there was no tuition fees or student loans, basic income tax was between 30 and 35%. People managed.  It is as if your income tax will be 29% rather than 20%. You’ll manage.

14. Annual Conference for Teachers and Advisers Mary Curnock Cook Chief Executive 9-10 February 2011

15. The World of Higher Education 2011-12 ▪Massive expansion of Higher Education in last 10-15 years ▪Government cuts in HE funding – esp. teaching budget ▪Financial penalties on HE institutions for taking students above quota ▪Rise in tuition fees won’t offset govt funding cuts

16. Why Universities like state school students … “Hoare and a colleague studied the results of 4,305 students admitted to Bristol in 2002-4. The starkest result was the 54% gap in firsts between state and private school students with three As at A-level.” From the Sunday Times

17. General guidance ▪Minimum entry requirements ▫Are minimum entry requirements ▪Achieving minimum entry requirements gets you on the pile that gets considered ▫Then additional sifts are applied ▫Everyone competing for the place your candidates want will also meet the minimum requirements ▪Ask mentor/D Studies about the likely sifting process at target institutions ▪Ring them yourself

18. Some application strategies......... ▪Broaden your choice of institution

19. Top15 institutions - independent school accepts

20. Other Russell Group universities ▪Cardiff ▪Edinburgh ▪Glasgow ▪Liverpool ▪LSE ▪Queen’s Belfast ▪Sheffield Challoner Students: Offers 2011 InstitutionOfferCourse Name LVRPL AABEnglish GLASG ABBMechanical Engineering LVRPL ABBPhilosophy CARDF BBBEnvironmental Geoscience EDINB NComputer Science LSE A*AA (inc Eng Lit & exc FM)Law LVRPL ABBPhysiology LVRPL ABBBiological Sciences LVRPL BBBCombined Honours SHEFDAABMolecular Biology

21. Challoner applications to Russell Group universities 2011 ▪No of students applying 40 (out of 82) ▪No of applications93 (out of 407) ▪Offers so far59 (out of 93) – 66% ▪No of rejections15 (out of 93) - 16% ▪Offer rangeA*AA – BBB (most AAA/AAB) ▪Highest offers: Birm, Bristol, Cam, Leeds, LSE, Soton

22. 1994 Group University of Bath Birkbeck, University of London Durham University University of East Anglia University of Essex University of Exeter Goldsmiths, University of London Institute of Education, University of London Royal Holloway, University of London Lancaster University University of Leicester Loughborough University Queen Mary, University of London University of Reading University of St Andrews School of Oriental and African Studies University of Surrey University of Sussex University of York

23. Challoner applications to 1994 Group universities 2011 ▪No of students applying 44 (out of 82) ▪No of applications81 (out of 407) ▪Offers so far62 (out of 81) – 66% ▪No of rejections4 (out of 81) - 16% ▪Offer rangeA*AA – BBB (most AAB/ABB)

24. University Alliance  Aberystwyth University Aberystwyth University  Bournemouth University Bournemouth University  University of Bradford [3] University of Bradford [3]  De Montfort University De Montfort University  University of Glamorgan University of Glamorgan  Glasgow Caledonian University Glasgow Caledonian University  University of Hertfordshire University of Hertfordshire  University of Huddersfield University of Huddersfield  University of Lincoln University of Lincoln  Liverpool John Moores University Liverpool John Moores University  Manchester Metropolitan University Manchester Metropolitan University  Northumbria University Northumbria University  Nottingham Trent University Nottingham Trent University  The Open University The Open University  Oxford Brookes University [1] Oxford Brookes University [1]  University of Plymouth University of Plymouth  University of Portsmouth University of Portsmouth  University of Salford University of Salford  Sheffield Hallam University Sheffield Hallam University  Teesside University Teesside University  University of Wales Institute, Cardiff University of Wales Institute, Cardiff  University of Wales, Newport University of Wales, Newport  University of the West of England University of the West of England

25. Challoner applications to University Alliance universities 2011 ▪No of students applying 44 (out of 82) ▪No of applications66 (out of 407) ▪Offers so far55 (out of 66) – 66% ▪No of rejections5 (out of 66) - 16% ▪Offer rangeABB (320) – 220 (CCD) ▪Average offer280 (BBC)

26. Million + Group  University of Abertay Dundee University of Abertay Dundee  Anglia Ruskin University Anglia Ruskin University  Bath Spa University Bath Spa University  University of Bedfordshire University of Bedfordshire  Birmingham City University Birmingham City University  University of Bolton University of Bolton  Buckinghamshire New University Buckinghamshire New University  University of Central Lancashire University of Central Lancashire  Coventry University Coventry University  University of Derby University of Derby  University of East London University of East London  Edinburgh Napier University Edinburgh Napier University  University of Greenwich University of Greenwich  Kingston University Kingston University  Leeds Metropolitan University Leeds Metropolitan University  London Metropolitan University London Metropolitan University  London South Bank University London South Bank University  Middlesex University Middlesex University  University of Northampton University of Northampton  Roehampton University Roehampton University  Southampton Solent University Southampton Solent University  Staffordshire University Staffordshire University  University of Sunderland University of Sunderland  Teesside University Teesside University  Thames Valley University Thames Valley University  University of The West of Scotland University of The West of Scotland  University of Wolverhampton University of Wolverhampton

27. Challoner applications to Million + universities 2011 ▪No of students applying 29 (out of 82) ▪No of applications52 (out of 407) ▪Offers so far30 (out of 52) – 58% ▪No of rejections5 (out of 66) - 13% ▪Offer range340 – 120 ▪Average offer240 (CCC)

28. Challoner applications 2011 overview so far HE groupStudentsNo apps % apps % RejOffers% offers Russell408922165966 199444812056277 Uni Alliance43661665583 Non-Aligned581152876960 Million +295213 3058 Total no of students applying82 Total no of applications made407

29. Some examples of good choices Molecular Biology EANGL BBB LVRPL ABB BATH ABB YORK ABB SHEFD AAB Geography STAFF260 LEICR ABB READG320 KEELE300 PORT280 International Rels OXFD BBC BIRM ABB READG300 EANGL ABB BIRM BBB History KENT340 ROE 300M SOTON K PORT300 KING220

30. Some examples of poor choice range Philosophy OXFD BBC KEELE300 LVRPL ABB LEEDSREJ BIRMREJ Primary Teaching KINGREJ SMARYREF UOCINV ROEREJ BRITNREJ

31. Strategies.......... ▪Make sure you have a range of institutions among your choices: ▪1 aspirational ▪2-3 realistic ▪1 ‘if all else fails’ ▪Insurance choice ▫It’s a backstop not a second option ▫Last year 42% had CIs harder or equal to CFs ▪Consider post qualifications admission