Welcome to our Higher Education Parents Information Evening

6.00 Mrs Tolley - Welcome and Introduction 6.05 Philip Smith - Coventry University on choosing universities and courses, widening degree courses and being ambitious but realistic Q&A 6.35 Mrs Tolley - Introduction to student finance Mr Bannister - Introduction to UCAS Apply and our systems Mr Preston - Five Ways students’ recent experiences with Higher Education and Careers guidance, MFAP

STUDENT FINANCE MATTERS Mrs Tolley

SESSION CONTENTS i Student Finance England Section 1 – The Student Finance Package Section 2 – Student Loan Repayments Section 3 – Applications & Information Section 4 – Money Management

COMMON CONCERNS !

! My child can’t afford to go to university, it’s far too expensive! i Regardless of household income, eligible students can apply for a Tuition Fee Loan to help with the cost of fees, and a Maintenance Loan to help with their living costs i No eligible students will have to pay their tuition fees up-front to go to university or college ! COMMON CONCERNS TUITION FEES

i Repayments don’t start until your child’s income is over £21,000 a year. They’ll then repay only 9% of their income over this threshold ! Debt from a student loan will be unmanageable! i The amount they repay will only increase with their earnings as repayments are based on their income, not how much they’ve borrowed COMMON CONCERNS ! REPAYMENTS

i Student loans are the sole responsibility of the student who takes them out i 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 ! What effect will student loans have on applications for mortgages or other loans/credit in the future? ! If my child can’t afford to repay their loan then I’ll have to foot the bill!?! COMMON CONCERNS ! GENERAL

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) i STUDENT FINANCE ENGLAND

Bursaries & Scholarships Tuition Fee Loan Maintenance (Living Cost) Support Additional Support The Student Finance Package Figures used in this section may change, subject to 2014/15 policy approval 1 THE STUDENT FINANCE PACKAGE SUPPORT AVAILABLE TO STUDENTS INCLUDES:

Universities and colleges* can charge new full-time students up to £9,000 per year (£6,750 part-time) for 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 the university or college (Up to £6,000 for approved courses at private HEI’s) Tuition Fee Loan doesn’t depend on household income SLC pay any Tuition Fee Loan directly to a university or college The loan is repayable, but only when the student’s income is over £21,000 a year *Publicly funded institutions 1 TUITION FEES & LOANS

Maintenance support is available to help with living costs a student will face while in higher education Two main types of support are available, Maintenance Loan and Maintenance Grant The Maintenance Loan is repayable and all eligible students are entitled to receive some funding The amount of loan available will depend on where a student lives and studies Maintenance support is paid directly into the student’s bank account each term 1 MAINTENANCE SUPPORT

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 2014/15 MAXIMUM RATES Additional loan is available for each extra week of study for students attending their course beyond 30 weeks 1

The Maintenance Grant doesn’t have to be repaid How much grant a student can get depends on their household income (100% means tested) Household income thresholds for 2014/15: MAINTENANCE SUPPORT Household Income: Up to £25,000 Household Income: Up to £42,620 Full Grant of £3,387 Partial Grant MAINTENANCE GRANT 1

If you will be supporting a student’s application for student finance that depends on household income, SFE will need to see details of your household (taxable earned and unearned) income and National Insurance number(s) 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 Unearned income includes: Interest from savings (only the annual summary is required) Benefits and Pensions Rent from property or a room For most applications, SLC verify income from these NI numbers with no need to send any documents, unless we ask for them 1 SUPPORTING AN APPLICATION HOUSEHOLD INCOME

Please give financial information for the tax year prior to when the student will start in higher education Eg, For students starting in Sept 2014 please submit financial information for the 2012/13 tax year Supporting an application – Drop in income: If your income has dropped by 15% or more in the current tax year SFE can reassess an application so a student may receive additional support Submitting a Current Year Income form: Support the student's application for finance as normal Complete the (CYI) form with estimates of this financial year's details Provide evidence to support estimates at the end of the current tax year SUPPORTING AN APPLICATION TAX YEAR USED FOR ASSESSMENTS 1

Household Income Maintenance Grant Maintenance Loan Total £25,000 & under£3,387£3,862£7,249 £30,000£2,441£4,335£6,776 £35,000£1,494£4,808£6,302 £40,000£547£5,282£5,829 £42,620£50£5,530£5,580 £42,875£0£5,555 £50,000£0£4,836 £62,132 & over£0£3,610 COMBINED MAINTENANCE SUPPORT LIVING AWAY FROM HOME, OUTSIDE LONDON 1 Students can get a quick estimate of their student finance entitlement using the calculator on gov.uk/studentfinancegov.uk/studentfinance

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 fee waivers or cash Scholarships: Can be linked to academic results or outstanding ability in an area such as sport, music or art Can be subject specific and are limited in numbers BURSARIES & SCHOLARSHIPS 1 Important to check university websites early and ask at open days for information on available bursaries and scholarships

ADDITIONAL SUPPORT Extra support may be available to students who: Have children or adults dependent on them Have a disability, long-term health condition, mental-health condition or specific learning difficulty 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 ADDITIONAL SUPPORT For more information on eligibility and applications for NHS support go to: 1

STUDENT LOAN REPAYMENT STUDENT LOAN REPAYMENTS AN OVERVIEW 2 Students won’t make repayments until their income is over £21,000 a year gross (before tax) Full-time students will be due to start repaying in the April after graduating from/leaving their course Repayments will be 9% of income over £21,000 and when employed deductions will be made from their pay through the HMRC tax system If their income falls to £21,000 or below, repayments will stop Early repayments can be made at any time, but any outstanding loan balance will be written off 30 years after entering repayment

Interest added will vary, depending on a students circumstances: During study until entering repayment Interest rate is: Retail Price Index (RPI) +3% Income: Below £21,000 Interest rate is: Set at RPI Only Income: £21,000 to £41,000 Interest rate is: RPI plus up to 3% Income: Above £41,000 Interest rate is: Retail Price Index (RPI) +3% The interest rate applied is updated once a year in September, using the rate of RPI from that March which is carried forward STUDENT LOAN REPAYMENTS THE INTEREST 2

Income each year before tax Income from which 9% is deducted Monthly Repayment (Approx) £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 REPAYMENTS THE FIGURES 2 More information on loan repayments and interest rates can be found on:

STUDENT LOAN APPLICATIONS STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - KEY MESSAGES 3 Apply online at gov.uk/studentfinance as soon as possible to make sure their student finance is in place for the start of their course Make a note of their account log-in details & keep them safe Students do not need a confirmed place at university or college to apply for student finance They can change most details online before starting their course Agree to share information from their application, this helps apply for many bursaries and some scholarships

STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - COMPLETING AN APPLICATION 3 Before starting the application, students should have the following to hand: Passport - SLC can check identity using valid UK passport details for most students University and course details Bank account details and National Insurance number If you will be supporting a students application you will need to set up your own account on GOV.UK and provide information including: National Insurance number(s), household income, details of other child dependent’s If you can’t submit your income details online, send a photocopy of evidence including: P60, Pay slips, Tax return, or Pensions

GOV.UK FOR MORE INFORMATION & TO APPLY 3

UNISTATS COMPARE UNI’S COURSES AND FEES 3

MONEY MANAGEMENT SECTION 4

MONEY MANAGEMENT CONSIDER THE COSTS 4 Before starting in higher education, it’s important students think about the costs they are likely to face and how to manage their money A student will receive their maintenance support in termly payments and will need to budget 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

HOW MUCH? Studying in London? An 18+ Student Oyster card can save you 30% on Bus, Tram & Travelcard prices £35.95 New £16.00 Used (Amazon) £30 for 1 yr £70 for 3 yrs Q How much does this textbook cost? Q How much is a Railcard? MONEY MANAGEMENT HOW MUCH? ?

Q What is the average weekly cost of student accommodation? *Approximate figures from NUS & The Guardian, based on university owned accommodation HOW MUCH? £117 per week* 11p Q How much are these ‘delicious’ noodles? MONEY MANAGEMENT HOW MUCH? ?

MONEY MANAGEMENT HINTS & TIPS TO CONSIDER 4 Plan a budget – and (try to) stick to it! Ask questions and get any advice they need – from teachers or advisers, current students, university or college staff Check out student bank accounts and NUS Extra cards Try to avoid taking credit cards, store cards or pay day loans!! Be aware of phishing scams – protect their information!! If they should need financial support and advice once at university or college, staff there will be able to help

NEED MORE INFORMATION? i i For further Information on student finance and applications go to: For a range of helpful tools and guidance, visit: