1. STUDENT FINANCE 2014-2015 FOR FULL-TIME UNDERGRADUATE
Open Days Version – Please don’t edit these slides without first checking changes with Marc Rothera
This finance talk is for full-time undergraduate students starting their first degree in 2014/15
I am not a financial adviser
You don’t need to write anything down, green finance guides will be available at the end, this information is also on our website
Will take questions at the end
STUDENT FINANCE FOR FULL-TIME UNDERGRADUATE
30/11/ :04

2. Student Finance Common concerns: Debt Credit rating Repayments Fees
Who is entitled to financial support?

3. Support available Tuition fee loan Maintenance loan and grant
Special Support Grant
Scholarships and bursaries
Additional support
Range of support available
Access to funding depends on a variety of criteria, key points:
UK National or ordinarily resident for three years before starting the course
Dependent or independent student (define and highlight that most will be dependent)
Note that you don’t have to be independent for consecutive months
Briefly explain difference between loan/grant/bursary

4. Tuition fee loans No upfront fee Covers the full cost of your course
Paid directly to your university
Student Finance England provide the finance
Will not affect credit rating, chances of getting a mortgage , credit card etc.
Emphasise that there are no upfront fees
Does not affect your credit rating
We will cover repaying loans later

5. Maintenance Loan Covers living and study costs
Part income assessed part not
Everyone is entitled to a minimum but the higher payments are means tested
Paid in three instalments per academic year
Is repayable to Student Finance England
The eligibility for this loan is based on an income assessment using residual income. This is the income before tax but after pension contributions.
The amount available depends on where you stay while at university (leads into next slide)

6. Maintenance loan Term time location
Doesn’t depend on household income (65%)
Depends on household income (35%)
Full rate 100%
Living with parents
£2,871
Up to £1,547
Up to £4,418
Not living with parents (outside of London)
£3,610
Up to £1,945
Up to £5,555
This will start to give you an idea
If your university isn’t in London – use the M25 as a guide

7. Maintenance Grant Does not have to be repaid
Is income assessed, available to households up to £42,000 (this would be a partial grant)
Paid in three instalments per academic year
Student Finance England
Available to households up to £42,000 who will get a partial grant
Reduces the ‘debt load’ / entitlement to Maintenance Loan

8. Maintenance Grant - Summary
Full-time student – household income
Grant for courses from September 2014
£25,000 or less
£3,387
£30,000
£2,441
£35,000
£1,494
£40,000
£547
£42,620
£50
42,620
No grant

9. Loans, Grants and Household Income, Grants and Household Income
Table for someone living away from home but not studying in London
Left - household income,
Turquoise bars represent the loan (the money you have to repay)
Green bars are the grant (the money you don’t have to repay.
The ‘Min Loan’ line is the 65% of the loan that everyone gets before means testing
Right hand column has the annual combined income from fees and loans.
The loan tapers up as grant tapers down
Then loan tapers back down because students from households with larger incomes should receive more support from their parents or sponsors
Calculation would be for how much you get is actually pound for pound
Grant is reduced by £1 for every complete £5.28 by which the income exceeds £25,000
Loan is reduced by £0.50 for every £1 of maintenance grant
Loan is reduced by £1 for every complete £9.90 by which the income exceeds £42,875

10. Example First undergraduate degree Living away from home
Household income of £35,000
Eligible for…
£9,000 Tuition Fee Loan
£4,808 Maintenance Loan
£1,494 Maintenance Grant
+ Plus support from your university
Here is a real world example.

11. Repaying the Loans Tuition/Maintenance Loan paid back after graduation
Only repay when earning over £21,000 per year
Paid back from your earnings
If earnings fall below £21,000 per year, repayments stop
According to Martin Lewis on average graduates under this system will will have £540-a-year more in their pockets than now….
The repayment threshold will rise by average earnings from 2017
You might want to point out that the old version of this presentation said ‘Earn £23k pay a week’ which shows how much better off graduates are under this new system.
Take home pay on £25kpa is around £1
Repayments based on what you earn, not what you owe
e.g. Earn £25,000, repay £6.92 per week, around £30 a month (£360 a year)

12. Repaying the Loans Loan is cancelled if you have it for 30 years
Does not affect credit rating
Sliding scale interest rate, linked to Inflation and earnings
During study period = RPI + 3%
Up to £21,000 rate = RPI only
£21,000 + = RPI % for each £1000 over £21,000
£41,000+ = RPI + 3% This is the maximum rate
We are still waiting for notice ( ) of whether there will be penalties for early repayment, this could potentially go either way. If there are they will probably work like the penalties attached to a mortgage, you will be allowed to overpay to a certain level but after that an additional fee (some percentage of the money you owe) will be charged to your overpayments.
TBC (But likely) the rate will be RPI + Or ‘Base Rate’ + whichever is lower (‘base rate’ is actually B0E base rate and 4 high st lenders averaged out)
Be totally clear with people that the interest rate applied makes no difference to your repayments (as these are fixed at 9% of your earnings over £21k)

13. Special Support Grant If you are: A lone parent Aged over 60
Have children and your partner is also a student
Eligible for certain means-tested benefits
Registered deaf or blind
Receiving incapacity benefit
Receiving non means-tested disability
allowance
Leaving the care of your local authority
Receiving non means-tested disability allowance
(full criteria on page 13 of the guide)
Show the Finance Guide page 13

14. Scholarships and Bursaries
(Depends on your household income, location of study and expected grades)
Fee reductions
Cash bursaries
Study support package
National Scholarship
Sports scholarships
Look at what individual Universities can offer as they all focus on slightly different things!
Explain what each of these are.
Explain that each university offers different scholarships and bursaries.
Fee reduction: Money off your tuition fees
Cash bursary: Money that’s awarded to help with living and university costs, may have to spent on particular aspects of student life
Study support package: We have Anglia Ruskin Books Plus which helps students pay for books, sports and clubs
National Scholarship: The National Scholarship programme (sometimes known as NSP) helps students from low income backgrounds and can take the form of a fee reduction or cash bursary. These differ in different universities our universities National scholarship is awarded partly in cash bursary partly in fee reduction.
Sports scholarships: Funding for students that are talented at sports.

15. NHS Students
Nurses, Midwives, Operating Department Practitioners (ODP)
Fees paid by NHS
Bursaries available
(also for Social Work)

16. Basic NHS Bursary £1,000 £2,865 £3,351 £1,744 (£1,324 in final year)
Non means tested grant
Estimated means tested bursary for 43 weeks*
Estimated means tested bursary for 45 weeks*
Non income assessed Student loan
Living with parents
£1,000
£2,865
£3,351
£1,744 (£1,324 in final year)
Living elsewhere
£3,657
£4,395
£2,324 (£1811 in final year)
All branches of Nursing degrees and ODP courses are 43 weeks long
Midwifery courses are 45 weeks long

17. NHS Funding Table Student living away from home on a 45 week course,
There’s a non-means tested bursary of £1,000
As your household income increases the amount of means-tested bursary is reduced (turquoise bar)
It’s suggested that the amount of funding not taken up by means-tested bursary is supplemented by parents or partner (bright green bar).
The Student Finance England loan is £2,324 per year
Reminder that loan reduces in 3rd year to £1,811 (because length of academic year is shorter)

18. Additiona Support If you have…
Disabilities
Mental health conditions
Specific learning difficulties
Dependent adults
Children
Mention students that could be helped by DSA include the those with dyslexia and dyspraxia.
Endorse visit to Money Advise Service if these apply

19. Applying for the 2014 to 2015 Academic Year To get your funding by the start of term, you must apply by: 30 May 2015 if you are a new student For more information:
Mention students that could be helped by DSA include the those with dyslexia and dyspraxia.
Endorse visit to Money Advise Service if these apply