13/14 STUDENT FINANCE 2013/14

13/14 SESSION CONTENT Student Finance Package Repayments Applications & Information Questions & Comments

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, without meeting residency requirements for European Union students. Exceptions exist for certain groups of students. GENERAL RESIDENCY REQUIREMENTS

If the student, their spouse, civil partner, parent/stepparent are recognised by the government as a refugee and lived in England since this status was awarded. If the student, their spouse, civil partner, parent/stepparent, 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 is any doubt surrounding their residency status or eligibility for funding students should call the SFE help line

RESIDENCY – 13/14 POLICY CHANGES From AY 13/14 applications received from Armed Forces Personnel or their family members will be processed by the funding body in the UK territory where they resided 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 leading to a recognised higher education qualification Including: University or College Eligibility The HEI must be publicly funded (by UK Government) or privately funded but running individual courses receiving public funding as designated by the government (BIS). 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. If a student has previously studied in the UK, they may still be eligible for maintenance loan support only if they do not have an equivalent or higher level qualification or are studying an ‘exception course’ leading to a professional qualification.* Individual circumstances of the student (including any extenuating circumstances) can affect eligibility. + ADD 13/14 14/15 15/16 = 4 years support Example based on standard 3 year F/T Course 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 of HE can charge a fee level of up to £9,000 per year but need to demonstrate increased efforts in widening participation and justification for any fee levels over £6,000.* The levels set will be decided by the university including if it charges at different levels for different courses. The average fee level 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 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 receiving funding from HEFCE but offering courses designated by BIS will be entitled to borrow up to £6,000 to cover their tuition costs. If the private institution is charging more, the student will need to self-fund the remainder. TUITION FEES – FULL TIME

Eligible students will not have to pay up front for their tuition. The non means tested tuition fee loan (not dependant on household income) is available to cover the fee levels set by the HEI. Up to £9,000 max for full-time courses (£6,000 at private institutions) The Student Loans Company will lend the requested amount and pay the university/college directly in instalments across the academic year. Not compulsory, Students can also*: Pay full fees upfront to the university/college, or Pay part of the fees and take tuition fee loan for the rest * To be agreed with the institution PAYING THE TUITION FEE

Tuition Fees will be paid to a HEI 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 the day payment is made to the university/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 and course grant. (Continuing students can still apply for these grants) The maximum universities or colleges can charge for part-time courses is £6,750 a year. Students starting designated P/T courses provided wholly by a private institution can apply for up to £4,500 in tuition fee loan. The amount charged will depend on the intensity of their course. (Minimum 25% Maximum 75%) Students must complete their part-time course in no more than 16 years. PART TIME STUDENTS

Part-time students will not be entitled to a loan or grant towards living costs but can access Disabled Students Allowance. (DSA) 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/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 on-going 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 Non Means Tested. (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% Non Means Tested 35% Means Tested 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 means tested 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 level in 2013 is £3,354. Unlike 100% of the tuition fee loan and up to 65% of the maintenance loan, the grant a student receives is solely dependant on household income levels. (100% Means Tested) Household Income Thresholds: Students from households with 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 link to National Scholarship Programme. Linked to personal circumstance and often, income level. Vary by institution. Scholarships: 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.

13/14 ADDITIONAL SUPPORT

13/14 Help towards the additional costs that a student may face as a result of their disability, mental-health condition or specific learning difficulty. In addition to the standard student finance package, Does not have to be repaid, Is not affected by the 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 DSA application process can take up to 14 weeks!

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 DSA Allowance rates 2013/14 ! For both full-time and part-time postgraduate students there is 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 is not 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.

13/ ADVANCED LEARNING LOANS

13/14 Learners aged over 24 in further education (FE) and training will be able to access finance on the same basis as in higher education (HE). Learners can apply for a loan to meet the upfront contribution costs of their course, which will be paid directly to their college or training organisation on their behalf. Loans available for Level 3 courses and above, this will include; A-Levels, Access to HE, Level 3+ Apprenticeships and other academic qualifications eligible for public funding (provided they are funded at least to the level of a QCF Certificate) 24+ ADVANCED LEARNING LOANS

SLC will be responsible for the loan application, assessment, payment (direct to the college/training organisation) and work with HMRC on repayment. The repayment of FE loans will operate on the same, income contingent basis as loans in HE. (based on 9% of income earned above £21,000) Amount of loan available will reflect funding rate for course. Maximum amount of loan will be equal to the fully funded rate for a level 3 or Level 4 course. (Up to £4,000 TBC) Learners who have taken out a loan for FE and training will still be able to take out a loan for HE.(If no previous HE study exists) 24+ ADVANCED LEARNING LOANS

Loans available to those aged 24 and over at beginning of course and meeting standard residency requirements. Maximum period allowable for loan support: 2 years for a Level 3 or 4 Certificate, 3 years for a Level 3 or 4 Diploma 2 years for Advanced (Lev 3 ) Apprenticeship Higher Level Apprenticeships TBC Individuals taking Access to HE courses: On completion of their Higher Education course, the SLC will write off the amount outstanding on the loan for the Access course. ! ‘Access courses are designed to help those with low qualifications but high ambitions progress into Higher Education, so it is right that we should support those learners.’ 24+ ADVANCED LEARNING LOANS

September 2012 Communications to learners begin, with materials being made available to support discussions and communications with potential learners. Learners can begin to apply for a 24+ Advanced Learning Loan for courses starting in the 2013/14 academic year. April 2013 Regulations laid before Parliament (to come into force on 1 September 2012) on implementation of 24+ Advanced Learning Loans. July 2012 Final confirmation of “Loans facility” to colleges and training organisations for 2013/14 academic year. December 2012 First cohort of 24+ Advanced Learning Loan students commence study. August ADVANCED LEARNING LOANS – KEY DATES

13/14 If colleges or training organisations have any questions about the 24+ Advanced Learning Loan implementation, please the Skills Funding Agency: loans For further information on the 24+ Advanced Learning Loan policy see: 24+ ADVANCED LEARNING LOANS Providers of FE can find more details at:

13/14 STUDENT LOAN REPAYMENT

12_ /14 Graduates will not make repayment contributions until they are earning at least £21,000 (£1,750 pm) gross. (On entering repayment, his threshold will rise annually in line with inflation/earnings) Full time students will begin to repay in the April after graduating from/leaving their HE course. (After 2016) Part time students can begin to repay in the April 4 years after they have started their course. (If earning over £21,000) Repayments will be a basic 9% of income over £21,000 and will be deducted automatically from pay through the HMRC tax system for most students. If income falls to £21,000 or below repayments will be suspended. 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 cleared 30 years after entering repayment.

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 ! No penalties will be placed on students making early repayments. 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%

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 ICR students occurred in April 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

12_ /14 Students & Parents/Sponsors Customer Helpline Customer Website Expert Advice for Practitioners Practitioner Helpline Practitioner Team Local Support for Practitioners Ben Rutter Local SFA STUDENT FINANCE ENGLAND – KEY CONTACTS

13/14 ? QUESTIONS & COMMENTS