FINANCE Steve Wilson

The Cost of Higher Education Student Loans for Tuition Fees Student Loans for Living Costs / Maintenance

UK Tuition Fees 2013/14 Universities in the UK can charge up to £9,000 a year for full time courses Situation in Scotland is complicated

Help Towards Tuition Fees Fees no longer paid up front Students apply for Student Loan for fees – every student entitled to this loan Money paid directly to your college or university Students repay these loans once left university and earning £21,000 Still possible to pay university fees directly in order to avoid accruing any debt.

Student Loans for Maintenance / Living Costs Loans for living costs are available Paid directly to student in three instalments Everyone entitled regardless of income to 65% of the loan Remaining 35% is means tested against household income 2013/14 Student Living at Home Student Living away from home in London Student Living away from home outside London Maximum : Full Year Loan Rate £4,375£7,675£5,500 Around 65% not income assessed £2,843£4,988£3,575 Around 35% income assessed £1,532£2,687£1,925

Repayment of Loan for Living Costs Tuition Fee Loans and Maintenance Loans added together Loan repaid once left university and earning above £21,000 per year Repayment linked to earnings: 9% of any amount that is earned above the £21,000 threshold eg£25,000-£30 per month £35,000-£105 per month £50,000-£217 per month Outstanding balance written off after 30 years Many will never repay their debt in full ‘Above inflation’ interest is charged – this does not affect the repayment cost each month but it is added to the overall amount owed – i.e. it takes longer to pay off debt.

Further Help with Living Costs Maintenance Grant Full Time students from lower income households are eligible for the non-repayable Maintenance Grant worth up to £3,354 per year. Students with household income under 42,611 get Maintenance Grants. 2013/14 Household Income Proposals £25,000 or less - Receive full grant of £3,354 Between £25,001 and £42,611 - Partial Grant More than £42,611 - No grant Student Loan for Maintenance will reflect this Grant, i.e. Maintenance Loan will be reduced by 50p for every £1 of Maintenance Grant Maintenance Grant paid in three instalments Tuition Fee Loan, Maintenance Loan and Maintenance Grant all applied for on one on line application if you agree to have household income assessed.

Examples Of Support Packages Available For Students Living Away From Home Household Income Non-Repayable Maintenance Grant Maintenance Loan Total £25,000 or less£3,354£3,823£7,177 £30,000£2,461£4,292£6,708 £35,000£1,487£4,761£6,239 £40,000£540£5,230£5,770 £45,000£0£5,288 £50,000£0£4,788 £55,000£0£4,288 £60,000£0£3,788 Over £62,125£0£3,575

Bursaries and Scholarship From 2012 Universities charging over £6000 have to provide financial help to those students from lower income households. University Bursaries Additional Money (could be gift in kind) from Universities – non repayable bursaries Vary in amount Many universities will give Bursaries to students who are eligible for part of the Maintenance Grant. National Scholarship Scheme (NSP) -Universities will give additional financial support to students whose family income is £25,000 or less -This NSP award will not affect any other finance the student may get -Money will vary from university to university -List of Universities which offer NSP available on direct.gov website Scholarships Lots available Cash or gift in kind based on academic ability (usually A Level grades) Contact University directly Student needs to be pro-active

Useful Websites ‘A guide to Financial Support For Higher Education Students’ ‘Higher Education Student Finance How you are Assessed and Paid’

Is a Degree Worth the Debt ? In financial terms this is less clear cut than it used to be: 40 per cent of school-leavers now going on to university, compared to less than 10 per cent a generation ago. (Daily Telegraph) Graduate employment prospects vary depending on: - The degree being studied - Graduate prospects in that field at the time - The university attended “Despite difficult graduate employment at the moment, it's worth remembering that, on average, graduates earn £100,000 more over their working lifetime, compared with those who haven't been to university." President of the National Union of Student