Higher Education - Finance

Megan Ette, Connexions Bucks

Higher Education - Finance

• How much is it going to cost?

• What financial support is available?

• What do I have to repay?

• How do I apply?

Tuition Fees & Loans

• From September 2012 universities and other institutions providing higher education will be charging up to £9,000 a year for their courses

• Tuition fees do not have to be paid ‘up front’ at the start of the course

• The Tuition Fee Loan is paid directly to your university or college by Student Loan company

Loan for courses in September 2014

Living in parent’s home

Up to £4,418

Study outside of London & not living with parents

Up to £5,555

Studying in London and not living with parents

Up to £7,751

Living and studying abroad for at least one academic term

Up to £6,600

Tuition Loans

Living Costs – Maintenance Loan

• Helps with living costs e.g. food, accommodation, books and travel

• The amount you can borrow depends on where you live and study and your household income

• Paid in 3 instalments during the academic year

Maintenance Grant

• If household income is less than:£25,000 = £3,387£30,000 = £2,441£35,000 = £1,494£40,000 = £547£42,620 = £50

Over £42,620 = no grantIf you get a Maintenance Grant your Maintenance

loan will be reduced

Additional Support – Bursaries & Scholarships

• You may be able to get a bursary, scholarship or award directly from your university. The National Scholarship Programme helps students with a family income of £25,000

• Could be related to your academic studies• Could be related to an interest e.g. sport ot

music• Commercial organisations

Other Sources of Finance

• NHS Bursaries for courses such as Speech & Language Therapy, Physiotherapy, Nursing & Midwifery

• Disabled Student Allowance

Repayments

• Tuition Loan Yes

• Maintenance Loan Yes

• Maintenance Grant No

• Bursaries No

• Scholarships No

Repayments

• If income falls below £21,000 your repayments stop e.g. career break or period of unemployment

• You repay 9% of your income

• Repayments are dependent on income, not how much you have borrowed

• Any outstanding balance is written off after 30 years

Income each year before tax

Monthly salary before tax

Approximate monthly repayment

Up to £21,000 Below £1,750 £0

£25,000 £2,083 £30.00

£30,000 £2,500 £67.50

£40,000 £3,333 £142.50

£50,000 £4,166 £217.50

£60,000 £5,000 £292.50

£70,000 £5,833 £367.50

Repayments

Repayments

• What interest will I pay on the loan?While you are studying = Retail Price Index (RPI)

plus 3%If you finish your course before April 2016 = RPI

plus 3% until the April after you leave your course and then RPI

From April 2016 – Interest is based on income£21,000 or less = RPI£21,000 to £41,000 = RPI plus up to 3%,

depending on income£41,001 and over = RPI plus 3%

How do I Apply?

• Apply on-line at

www.gov.uk/studentfinance

• Link on UCAS• Apply early – you don’t need a confirmed offer• It will take 6-8 weeks to process your application• Applications can be managed on-line