Parent’s Forum Wednesday 22nd May 2019

Introduction to student finance 2019/20

WELCOMEAt this stage in Year 12 students start thinking about the next steps and for those thinking about Higher Education, one big concern and area of confusion is student finance.

Mr J Linnell

Head of Sixth Form

AIMS

1) To understand the situation with student finance and how to apply.

2) To help provide some advice in handling personal finances beyond Sixth Form.

Student Finance England (SFE) provides financial support on behalf of

the UK Government to students from England entering higher education

in the UK.

• The two main costs you’ll have while studying are tuition fees and

living costs.

• There’s student finance available to help you with both.

• Depending on your circumstances, you could also get extra financial

help while you study.

Student Finance England

Section 1 - What are we talking about?

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SOME KEY TERMS

What you

need to know…

Grants

Maintenance

Loan

Bursary /

Scholarships

Repayment

Tuition Fee

Loan

Section 2 - What student finance you can get

All 2019/20 policy is subject to Parliamentary approval.

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• You won’t have to pay any tuition fees up front.

• You can get a Tuition Fee Loan to cover the fee charged by your uni

or college.

• The amount you get doesn’t depend on your household income.

• SFE will pay the Tuition Fee Loan directly to your uni or college.

• You’ll have to start paying your Tuition Fee Loan back when you’ve

finished or left your course, but only if your income is over the repayment

threshold.

Tuition fees

Maintenance Loan

You can get a Maintenance Loan to help with your living costs, such as rent.

• All eligible students can get some maintenance support.

• The amount you can get depends on where you live and study.

• You can also apply for more based on your household income.

• The Maintenance Loan is paid directly into your bank account at the start

of each term.

• You’ll have to start paying your Maintenance Loan back when you’ve

finished or left your course, but only if your income is over the repayment

threshold.

Parental home Live at home while you study

Up to

£7,529

Living away from home Outside of London

Up to

£8,944

Maintenance LoanMaximum levels for 2019/20

London Live away from home & study in London

Up to

£11,672

• All annually…

How much can you get?

• All annually…

How much can you get?

• All annually…

How much can you get?

Other financial help and support may also be available if you:

• have children or an adult who depends on you financially

• have a disability, including a long-term health condition, mental-health

condition or specific learning difficulty

• Some Universities will offer bursary’s to support students. Check with

individual providers

• Some universities offer scholarships or grants to entice students to their

courses, but these sometimes will depend on exams or test results

Extra help

Section 3 - How to apply for student finance

All 2019/20 policy is subject to Parliamentary approval.

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A Online at www.gov.uk/studentfinance

Q When should you apply for your student finance?

Q What is the easiest way to apply for your student finance?

A As soon as possible once the application service opens

(Usually around March 2020)

How much do you know?Student finance applications

https://www.gov.uk/get-undergraduate-student-loan

GOV.UKTo apply

www.gov.uk/studentfinance

• Apply online at gov.uk/studentfinance

• Apply early to make sure your money is ready for the start of your course.

• You don’t need a confirmed place at uni or college to apply.

• Apply with your preferred choice, you can change the details later if you

need to.

• Deadline is 24th May 2019

Student finance applications

More information onlinewww.thestudentroom.co.uk

More information onlinewww.ucas.com/sfe

How to support an application

• Your child applies for student finance

• You give us your income details

• Your child gets paid

How it works…

Section 4 – Repaying your student loan

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How much do you know?

Q What will your student loan repayments be based on?

Q How much do you need to earn before you start to repay?

A Your future income

A £25,725 a year

• You won’t make repayments until your income is over the repayment

threshold.

• If you study a full-time course, you will be due to start repaying in the

April after graduating or leaving your course.

• You’ll repay 9% of your income over the threshold.

• If your income falls below the threshold, your repayments will stop.

• Any outstanding loan balance will be cancelled 30 years after entering

repayment.

Student loan repayments

Income each year

before tax

9% will be deducted

fromMonthly repayment

(Approx)

£25,725 £0 £0

£27,000 £1,275 £9

£29,500 £3,775 £28

£31,000 £5,275 £39

£33,000 £7,275 £54

Student loan repayments

Interest is applied to your loan. More info can be

found on www.slc.co.uk/repayment

The interest rate is based on the UK Retail Price Index (RPI)

and is updated once a year.

Income

£28,000£2,275

9% Deducted

from? £17Monthly

repayment?

For information on student finance and to apply go to

www.gov.uk/studentfinance

https://www.gov.uk/apply-online-for-student-

finance?step-by-step-nav=18045f76-ac04-41b7-

b147-5687d8fbb64a

Our experts are online Monday to Friday 9am-5pm and

Saturday 9am-4pm to answer your questions:

• tweet us @SF_England

• post your question on Facebook/SF_England

Need more information?

In summary…

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The Process

The Process

The Process

Section 5 – Personal Finance Tips

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This is about how student’s

use their maintenance loan

and budget effectively.

SOURCE National Union of Students 2019

SOURCE National Union of Students 2019

TIP ONE:

BUDGET

£64 – A lot

of money to

socialise

TIP TWO:

TAKE RESPONSIBILITY FOR

YOUR FINANCES

INFORM YOURSELF – Don’t

assume or trust friends, they

might be in a different

financial position.

TIP TWO:Know the difference…

Current Account Card

Credit Card

TIP TWO:

Current AccountsA basic bank account gives you the essentials necessary for managing day-to-day finances. They don’t usually allow you to go overdrawn and there may be charges if you do.

TIP TWO:

Student Current AccountsMost banks offer an interest-free overdraft and many also offer benefits such as vouchers, shopping and travel discounts and mobile services, so you’ll have all the help and support you need to balance your money and your student life.

TIP TWO:

OverdraftCheck your charges. Sometimes they are interest free until you exceed a certain amount.

How will not paying effect

your credit rating?

TIP TWO:Credit CardsWhat is the difference between a debit card and credit card?When you use a debit card the money is debited from your bank account. With a credit card the money you’ve spent on purchases is normally held on interest free credit until you receive your monthly statement. You can then either pay off the bill in full and not pay any interest, or decide to pay off some of your balance in which case you would be charged interest and compound interest.

TIP TWO:

Credit CardsCompound Interest!

Tip Three

• Be organised.

• Budget and set limits.

• If you can supplement your loan

with part-time jobs.

Tip Three

• Be organised.

• Budget and set limits.

• If you can supplement your

loan with part-time jobs.

Use some of these final tips…

Tip Three

RentLook at your rent. Can you move somewhere cheaper? Or get an extra person in to share the rent?When you receive your loan at the beginning of the term, either set aside the money required for your rent in an interest-earning separate account, or pay your rent immediately. This is essential if you wish to keep a roof over your head, so try not to get into rent arrears. Remember if you pay monthly rent you will have to continue to pay during the vacations at Christmas and Easter when you might not actually be living in London. Halls of residence and private landlords will also require a deposit.

Tip Three

Transportcould you reduce your costs by walking or cycling? Can you make use of weekly or monthly travelcards or a 18+Student Oyster Photocardfrom www.tfl.gov.uk which are cheaper? If you run a car, think about selling it – it is a fallacy that cars are cheaper than using public transport. If you travel outside London often, get a Young Person’s Railcard to save money.

Tip ThreeFoodtry to use a cut-price store for basics and markets for fruit and vegetables. Invest in a cook book on Healthy Eating on a Budget and cut down on fast food, snacks and eating out which are expensive. Make packed lunches. Share the shopping and cooking with a friend – it’s cheaper. You’ll be healthier as well as richer!

COOK YOUSELF!

Tip Three

Heating & electricity billsput on an extra sweater instead of turning up the heating. Turn heat and lights off when you go out and when you go to bed. Pay in monthly instalments if possible and inform the utility company when you are moving out so that you do not get billed for subsequent occupants. Share cooking rather than doing it individually. Shower instead of bath.

Tip Three

Mobile PhonesStudents are now in need of a mobile phone, shop around for the best deal for your pattern of use and ration yourself. Conventional phones and international phone cards are much more economical, particularly if you call after 6pm and at weekends.

Tip Three

Socialisingtry to ration yourself and discover the pleasures of some of the free entertainment in London in parks, museums and galleries. Make use of your NUS membership card to get discounts in certain shops, theatres and travel companies. Use the Student Union and the University of London Union for ideas on cheap entertainment.

Tip Three

Bookstry to get second-hand books for your course. ULU have book sales, look on Students Union and departmental notice boards or consult www.studentbooks.co.uk. Use the library and study-packs. E-bay and online auction sites are great for second hand materials at knock down prices.

Tip ThreeTV Licenseyou need your own TV licence if you have a TV in your room in halls or if you share a house with other students and have one in your room. If you share a TV with your housemates you will need a licence. If you’re caught without a valid licence, a fine of up to £1000 could mean curtains for your finances this year. A colour TV licence costs £150.50 Pay online at www.tvlicensing.co.ukYou need a TV licence if you watch on tablet, phone or laptop device including i-player.

Tip ThreeCouncil Taxfull-time students are exempt from paying Council Tax. Get a certificate of student status online from the Registry at www.soas.ac.uk/registry/forms and take it to your landlord or council tax office if you are sent a bill. If you share with non-students, the property will attract a council tax bill and you might be asked by your flatmates to pay a share.

Tip Three

Presentsask family for essentials like clothes, shoes, books or money for Christmas and birthday presents. And don’t forget your parents’ birthdays – hopefully they are supporting you and fostering good relations is important.

BE NICE TO MUM AND DAD!

Tip Three

Help with health costsif you have to buy regular prescriptions, get your eyes tested or get dental treatment, you may be eligible for help with the costs on the grounds of low income. Get a HC1 form from Student Services in V302 and apply to the NHS.

REGISTER WITH THE STUDENT HEALTH CENTRE.

Tip Three

InsuranceIf you have valuables like a computer, bicycle, TV, etc, you should insure them against damage or theft. The cover will be cheaper than the cost of replacement. Halls fees include some insurance –check whether it is enough for you. Check with your parents first, as some household insurance policies can include insurance for students’ possessions for a small additional premium. Or check out Endsleigh or other companies on the web for student policies.

Questions?

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Parent’s Forum Wednesday 22nd May 2019

Introduction to student finance 2019/20

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