2015/16 INTRODUCTION TO STUDENT FINANCE INFORMATION FOR PARENTS

2015/16 SESSION CONTENTS i Section 1 – SFE & The Student Finance Package Section 2 – Applications & Information Section 3 – Student Loan Repayments Section 4 – Money Management Questions or Comments

2015/16 STUDENT FINANCE ENGLAND SECTION 1

2015/16 Student Finance England provide financial support on behalf of the UK Government to students from England entering higher education in the UK. The two main costs full-time students will have while studying are tuition fees and living costs. SFE make finance available to help students with both. Depending on their circumstances, course and where they study, students may be able to get a range of financial help and support. This includes grants and bursaries (which don’t have to be paid back) and loans (which do). STUDENT FINANCE ENGLAND AN INTRODUCTION

2015/16 THE STUDENT FINANCE PACKAGE* SECTION 1 *All figures used in this section are subject to final approval of the 2015/16 student finance policy

2015/16 SECTION TITLE IN HERE SUBHEADER IN HERE SECTION 3 TUITION FEE Loan Maintenance Support Extra Support Student Finance Package

SECTION /16 *Eligible English domiciled students studying at a publicly funded university or college Q What’s the maximum tuition fee universities or colleges can charge new students in 2015/16?* Q How much of this will students need to pay up front before they go to uni or college?* A £9,000 A £0 – Regardless of your household income, a Tuition Fee Loan is available to all eligible students. HOW MUCH DO YOU KNOW? TUITION FEES – CAN STUDENTS AFFORD IT?

SECTION /16 Universities and colleges* can charge new full-time students up to £9,000 per year in tuition fees. Eligible students won’t have to pay any tuition fees up front.* A Tuition Fee Loan is available to cover the fee charged by a university or college.** A Tuition Fee Loan doesn’t depend on household income. SFE pay the Tuition Fee Loan directly to a university or college. The loan is repayable, but only when a student’s income is over £21,000. *Publicly funded institutions **Up to £6,000 for approved courses at private providers TUITION FEES AND LOANS AN OVERVIEW

2015/16 SECTION TITLE IN HERE SUBHEADER IN HERE SECTION 3 Tuition Fee Loan MAINTENANCE Support Extra Support Student Finance Package

SECTION /16 Maintenance support is available to help students with their living costs while in higher education. There are two main types of support, Maintenance Loan (repayable) and Maintenance Grant (non-repayable). All eligible students are entitled to receive some Maintenance support. The amount of Maintenance Loan a student gets depends on where they live and study. Maintenance support is paid directly into a student’s bank account each term. MAINTENANCE SUPPORT AN OVERVIEW

SECTION /16 London Live away from home & study in London Up to £8,009 £ Elsewhere Live away from home & study outside London Up to £5,740 £ Parental Home Live at home while they study Up to £4,565 £ MAINTENANCE LOAN MAXIMUM LEVELS 2015/16 If studying overseas as part of a UK course, Maintenance Loan support is still available; up to £6,820 for 2015/16. i

SECTION /16 Full-Year Student* 65% Non Means Tested 35% Means Tested Maximum Loan Parental Home£2,967£1,598£4,565 Elsewhere£3,731£2,009£5,740 London£5,205£2,804£8,009 Overseas£4,433£2,387£6,820 i Additional loan may be available for any extra weeks of study if a course goes beyond 30 weeks in an academic year. *Lower rates are available to final year students MAINTENANCE LOAN MAXIMUM LEVELS 2015/16

SECTION /16 The Maintenance Grant doesn’t have to be repaid. How much grant a student gets depends on their household income (100% means tested). Full Grant: £3,387 Partial Grant: (Min £50) Household Income: Up to £25,000 Household Income: Up to £42,620 MAINTENANCE GRANT SUPPORT AND MEANS TESTING Household income is the taxable earned and unearned income of the parents/partner a student lives with most of the time. i

SECTION /16 If supporting an application for means tested student finance, SFE will need details of a student’s parents’ or other sponsor’s household (taxable) income and National Insurance numbers. Taxable earned income includes*: wages, salaries, tips, and other taxable employee pay long-term disability benefits received prior to minimum retirement age net earnings from self-employment Taxable unearned income includes*: interest from savings (only the annual summary is required) benefits and pensions rent from property or a room i *More details/information can be found on the HMRC website: SUPPORTING AN APPLICATION HOUSEHOLD INCOME

SECTION /16 Household Income Maintenance Grant Maintenance Loan Total £25,000 & under£3,387£4,047£7,434 £30,000£2,441£4,520£6,961 £35,000£1,494£4,993£6,487 £40,000£547£5,467£6,014 £42,620£50£5,715£5,765 £42,875£0£5,740 £50,000£0£4,998 £62,143 & over£0£3,731 COMBINED MAINTENANCE SUPPORT LIVING AWAY FROM HOME OUTSIDE LONDON The calculator found on gov.uk/studentfinance can provide an estimate of student finance entitlement.gov.uk/studentfinance i

2015/16 SECTION TITLE IN HERE SUBHEADER IN HERE SECTION 3 Tuition Fee Loan Maintenance Support EXTRA Support Student Finance Package

SECTION /16 Many universities and colleges offer financial support to their students through bursaries and scholarships: Bursaries: linked to personal circumstances and often, household income awards can include discounted tuition fees, accommodation or cash Scholarships: linked to academic results or ability in an area such as sport or music can be subject specific and are usually limited in numbers Students should check university/college websites and ask at open days to see what they offer and how/when apply. EXTRA SUPPORT BURSARIES AND SCHOLARSHIPS i

SECTION /16 ADDITIONAL SUPPORT have children or an adult dependent on them have a disability, long-term health condition, mental-health condition or specific learning difficulty study overseas as part of their UK-based course study an NHS or Social Work course NHS courses include: nursing, midwifery, physiotherapy, speech and language therapy, dietetics, radiography, the later stages of medicine and dentistry For more information on eligibility and applications for NHS support go to: EXTRA SUPPORT EXTRA HELP MAY ALSO BE AVAILABLE IF STUDENTS…. i

2015/16 APPLICATIONS & INFORMATION SECTION 2

2015/16 Apply Online Students APPLY on time We ASSESS their application They get PAID!

2015/16 SECTION 2 a) Call SFE and ask for an application form to be sent out b) c) Apply? Doesn’t the money just appear when they need it?! a) After they have started their course b) When they have a confirmed offer from a university or college c) As soon as possible A A b) Q When should students apply for their student finance? Q What is the easiest way for students to apply for their student finance (and for you to support their application)? HOW MUCH DO YOU KNOW? STUDENT FINANCE APPLICATIONS

2015/16 SECTION 2 Each year thousands of students apply late for their finance and have no way to pay for their course or accommodation, some even have to drop out....don’t let that be your son or daughter! It will take at least six weeks to process an application so encourage them to apply early so their funding is ready for the start of their course. Apply online at gov.uk/studentfinance* Students don’t need a confirmed place at university or college to apply. Apply with their first choice, they can change details later if necessary. *Students can register on UCAS and check the SFE websites for updates on when to apply for student finance. STUDENT FINANCE APPLICATIONS KEY MESSAGE – APPLY EARLY i

2015/16 SECTION 2 GOV.UK FOR THE INFORMATION YOU NEED

2015/16 SECTION 2 Before starting an application students should have the following to hand: passport – SFE can check identity using valid UK passport details university and course details bank account details and National Insurance number The easiest way for parents, partners or other sponsors to support an application is online through GOV.UK, providing information including: National Insurance number(s) household income information (based on prior tax year*) details of other child dependants STUDENT FINANCE APPLICATIONS KEY MESSAGE – COMPLETING AN APPLICATION *If your household income drops by 15% or more in the current tax year, SFE can reassess an application. i

2015/16 SECTION SFE ONLINE FOR MORE INFORMATION AND RESOURCES

2015/16 STUDENT LOAN REPAYMENTS SECTION 3

2015/16 SECTION TITLE IN HERE SUBHEADER IN HERE SECTION 3 The FACTS The FIGURES The INTEREST Student Loan Repayments

2015/16 SECTION 3 a) Their future income b) How much they have borrowed c) Neither, they just pay a fixed amount regardless a) £16,000 a year b) £21,000 a year c) Doesn’t matter, repayments will be taken whatever they earn A b) £21,000 a year A a) Their future income HOW MUCH DO YOU KNOW? STUDENT LOAN REPAYMENTS – UNMANAGEABLE? Q What are a student’s loan repayments based on? Q How much do students need to earn before they start to repay?

2015/16 SECTION 3 A Student loans are unsecured government lending and are very different to commercial loans. They don’t go on credit files or show up on credit checks ? Will student loans have an affect on an application for loans or credit in the future? ! If my child can’t afford to repay their loan then I’ll have to foot the bill!?! COMMON CONCERNS Student loans are the sole responsibility of the student who takes them out A HOW MUCH DO YOU KNOW? STUDENT LOANS – COMMON CONCERNS

2015/16 SECTION 3 ? Will a student loan impact on getting a mortgage? A Student loan repayments now have to be included as ‘committed expenditure’ in mortgage applications i While this may effect how much a graduate can borrow, it doesn’t mean they can’t or won’t be able to successfully secure a mortgage i Further information can be found on the Council of Mortgage Lenders website – HOW MUCH DO YOU KNOW? STUDENT LOANS – COMMON CONCERNS

2015/16 SECTION 3 Students won’t make repayments until their income is over £21,000 a year gross (before tax). If they study a full-time course, students will be due to start repaying in the April after graduating from/leaving higher education. They’ll repay 9% of their income over £21,000 and if employed, deductions will be made from their pay through the HMRC tax system.* If their income falls to £21,000 or below their repayments will stop. Any outstanding loan balance will be written off 30 years after entering repayment. STUDENT LOAN REPAYMENTS AN OVERVIEW *If they move/work overseas they will repay 9% of any earnings over the repayment threshold for the country they are living in. i

2015/16 SECTION 3 £30 Monthly Repayment? £4,000 9% Deducted from? Income each year before tax 9% will be deducted from Monthly Repayment (Approx) £21,000£0 £30,000£9,000£67 £40,000£19,000£142 £50,000£29,000£217 £60,000£39,000£292 Income £25,000 STUDENT LOAN REPAYMENTS THE FIGURES Early repayments can be made at any time (with no penalty) if a student wants to reduce their loan balance early. i

2015/16 SECTION 3 Interest levels will depend on a student’s income and circumstances: Interest rate is: Set at RPI Only Interest Rate: RPI Only During study until entering repayment Income: Under £21,000 Interest Rate: Retail Price Index +3% i The interest rate is updated once a year using the RPI figure from March which is carried forward and applied in September. Income: £21,000 to £41,000 Income: Over £41,000 Interest Rate: RPI + up to 3% Interest Rate: RPI +3% STUDENT LOAN REPAYMENTS THE INTEREST

2015/16 MONEY MANAGEMENT SECTION 4

2015/16 SECTION TITLE IN HERE SUBHEADER IN HERE SECTION 3 Consider the COSTS Plan a BUDGET Points to REMEMBER Money Management

SECTION /16 Before starting in higher education, it’s important students think about the costs they are likely to face and how to manage their money. Students need to remember they get their maintenance support payments each term and will need to pay for things like: books and other study materials accommodation, food and drink sports, leisure and social activities There will also be other costs they may not have thought of yet such as insurance or a TV Licence...so they should think about planning a budget! MONEY MANAGEMENT CONSIDER THE COSTS

SECTION /16 Q How much does this textbook cost? Q How much is an NUS Extra card? New £26.99 Used £ Year £12 3 Year £32 ? ? ? ? MONEY MANAGEMENT HOW MUCH?

SECTION /16 Q How much is this bag of pasta? Q What is the average weekly cost of student accommodation? *Figures from NUS based on university-owned accommodation (including privately owned student accommodation = £123.96) And for some flavour.....This jar of tasty sauce costs? And unless they want to eat it cold one of these might be useful! £ ? 29p ? 39p ? From £2.25 ? MONEY MANAGEMENT HOW MUCH?

SECTION /16 Important to make the right university/college and course choice!! Tuition Fee Loans are available to all eligible students. Future repayments are linked to a student’s income, not what they owe! Research all finance available – especially bursaries & scholarships. Apply online & on time – no need to wait for a confirmed place. Check all details are correct before submitting an application. KEY MESSAGES POINTS FOR STUDENTS TO REMEMBER

2015/16 IF YOU ARE UNSURE PLEASE ASK! QUESTIONS OR COMMENTS?

2015/16 For further information on student finance and applications go to: For a range of helpful tools and guidance, visit: i i NEED MORE INFORMATION? REMEMBER SFE IS ONLINE