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StudentFinance

2012

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Session Contents

• Student Finance 2012

• Research & Application

• Repayments

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GeneralEligibility

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Personal Eligibility

• Settled status – can live in the UK without 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/European Economic Area students

• Exceptions exist for certain groups of students

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• If the student, their spouse, civil partner, parent/stepparent are recognised by the Government as a refugee and lived in this country 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

• If student is the child of a Swiss national or Turkish worker, and been ordinarily resident in the EEA and Switzerland/Turkey for the three year period immediately before the first day of the first academic year of their course

Personal Eligibility - Exceptions

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Course/University/College Eligibility

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 coursesreceiving public funding as designated by the Government

• 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)

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Previous Study Rules

• General rule – Tuition fee loan available for full length of the student’s 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 studying an ‘exception course’ leading to a professional qualification*

• Individual circumstances of the case (including any extenuating circumstances) can affect eligibility

*Medical Doctor, Dentist, Veterinary Surgeon, Architect, Social Worker,

Course attracting an m/t Healthcare Bursary (NHS course)

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StudentFinancePackage

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Tuition FeeLoan

Maintenance

Support

Scholarships

& Bursaries

AdditionalSupport

Student FinancePackage

Student Finance Package

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Tuition FeeLoan

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Tuition Fees

• Universities/Colleges of HE to charge a fee level of £6,000 to £9,000 per year but need to demonstrate increased efforts in widening participation and justification for the higher levels*

• The levels set will be decided by the university including if it charges at different levels for different courses

• The average for 2012 is thought to be around £8,657 up from the initial £7,500 expected government average level(Independent & Times Higher Education)

*Presented in OFFA approved Access Agreement

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Tuition Fee Liability

Tuition FeeLoan

Tuition Fees will be paid to HEI at three times 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 2 25%

First day of Term 3 50%Interest on the loan will be charged from day

payment ismade to the university/college not from the liability

date

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• Eligible students will not have to pay up front for their tuition

• The non means tested tuition fee loan (not dependant onhousehold income) is available to cover the fee levels set by the HEI (up to £9000 max)

• The Student Loans Company will lend the requested amount and pay the university/college in instalments across the academic year

• Not compulsory: students can also— Pay full fees themselves; or— Pay part of the fees and take tuition fee loan for the rest

Paying the Tuition Fee

Tuition FeeLoan

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Tuition FeeLoan

• Students on Sandwich years/study years abroad will be subject to lower fee limits

• 2012/13 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 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*

Sandwich Years/Private Providers

*If the institution is charging more, the student will have to self-fund the remainder

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Part Time Students

Tuition FeeLoan

• From September 2012 new part-time students can apply for a non means tested tuition fee loan which replaces the existing means tested fee and study grant

• The maximum universities or colleges can charge for part-time courses is £6,750 a year*

• The amount charged will depend on the intensity of their course (Minimum 25%; Maximum 75%)

• Part-time students will not be entitled to a loan or grant towards living costs but can access Disabled Students Allowance (DSA)*Students starting designated P/T courses provided wholly by a private institution can apply for up to £4500 in tuition fee loan

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MaintenanceSupport

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•The majority of the repayable maintenance loan will be available to all eligible students (if required), with 65%

of the total loan amount being Non Means Tested (Not based on household income)

•The amount of maintenance loan available will be

linked to where a student lives and studies

Maintenance Loan

Maintenance

Support

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Maintenance

Support

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 £2,685 £7,675

Overseas £4,247 £2,288 £6,535

Maintenance Loan Specific Amounts

Students attending their course beyond 30 weeks, additional means tested loan is available for each additional week of study

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Household Income £

2011/12 Rate

2012/13 Rate

Difference

£25,000 & under

£3,497 £3,875 £378

£32,500 £4,247 £4,557 £310

£37,500 £4,512 £5,011 £499

£42,500 £4,677 £5,466 £789

£47,500 £4,824 £5,038 £196

£52,500 £4,606 £4,538 £-68

£57,500 £3,606 £4038 £432

£62,500 & over

£3,564 £3,575 £11

Maintenance Loan

Changes in maintenance loan levels

Maintenance

Support

For income exceeding £42,600 and up to £42,875 the maximum loan will be awarded (If applied for)

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• The maximum non repayable maintenance grant level in2012 is £3250

• Unlike 100% of the tuition fee loan and up to 65% of themaintenance loan, the grant a student receives is solelydependant on household income levels (100% Means Tested)

• Students from households with income of up to £25,000 will be entitled to the maximum £3,250

• Students from households with incomes of up to £42,600 will be entitled to a partial grant

Maintenance Grant

Maintenance

Support

If awarded the grant, the amount of maintenance loan entitlement is reduced by 50p for every £1 of grant the student is entitled to (up to £1,625)

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Household Income £

Maintenance Grant

Maintenance Loan

Total

£25,000 & under

£3,250 £3,875 £7,125

£30,000 £2,341 £4,330 £6,671

£35,000 £1,432 £4,784 £6,216

£40,000 £523 £5,239 £5,762

£45,000 £0 £5,288 £5,288

£50,000 £0 £4,788 £4,788

£55,000 £0 £4,288 £4,288

£60,000 £0 £3,788 £3,788

£62,500 & over

£0 £3,575 £3,575

Student living away from home outside London 2012/13

Combined Support

Maintenance

Support

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Special Support Grant

Tuition FeeLoan

• Replaces the Maintenance Grant for students who can claim income-related benefits. Some examples: -

• Lone (single) parent

• Student with a partner who is also a student and one or both are responsible for a child under 20 who is in full-time education below higher education level

• Student with a disability who qualifies for the Disability Premium, Severe Disability Premium or income-related Employment and Support Allowance

• If awarded the Special Support Grant, the student’s maintenance loan entitlement will not be reduced

Maintenance

Support

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Scholarships& Bursaries

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Bursaries:• May link to National Scholarship Programme• Depend on circumstances• Vary by institution

Scholarships:• Academic, sport or music• Subject specific or generic• Vary by institution

Scholarships & Bursaries

Scholarships

& Bursaries

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Scholarships

& Bursaries

Real help for students with the costs of study. Options could include:

• Fee waiver or discount• Free foundation year• Discounted accommodation or other service• Scholarship/bursary – capped as a cash

award at £1,000.

National Scholarships (NSP)

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AdditionalSupport

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Disabled Students Allowance

• Help towards the additional costs that a student may face as a result of their impairment, 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 studies

Additional

Support

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Additional

Support

AllowancePart-time maximum support

Full-time maximum Support

Frequency of Payment

Non-medical personal helper

£15,390 £20,520 Annual

Specialist equipment £5,161 £5,161Duration of

course

Other disability-related expenditure

£1,293 £1,724 Annual

Disability-related travel No Limit – reasonable spending can be claimed

Full and part-time disabled postgraduate students can receive up to £10,260 a year

Disabled Students Allowance

DSA Allowance rates 2012/13

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Childcare Grant• Non repayable grant to assist with registered/approved

childcare costs for students with dependent children aged under 15 at the start of an academic year(Under 17 if they have special educational needs)

• The amount the student receives will be dependent onhousehold income and based on up to 85% of actual childcare costs during term times and holidays

The maximums available are: • £148.75 per week for one child• £255 per week for two or more children

Additional

SupportAdditional Finance

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Additional Finance

Adult Dependants’ Grant• For students with a partner or another adult who is

financially dependent on them (cannot be an adult child).• The amount students receive is dependent on their

household income

• Where applicable, the maximum grant in respect of a spouse or civil partner will be £2,642

• Where there is no spouse or civil partner, a student may be eligible for this grant in respect of one adult dependantwhose net income does not exceed £3,796

Additional

Support

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Parents’ Learning Allowance• For help with course-related costs for students with

dependent children

• The amount received will be between £50 and £1,508dependent upon household income

Access to Learning Fund • Additional source of funding available to students through

their HEI if facing financial hardship, need extra support with course/living costs or considering leaving higher education due to financial problems

Additional

SupportAdditional Finance

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StudentResearch

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www.yourfuture.direct.gov.uk

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www.direct.gov.uk/studentfinance

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www.direct.gov.ukA-Z Search of National

Scholarships offered by individual HEI’s

Scholarship/Bursary Information

www.ucas.comCourse Search includes: Information on fee levels and links to HEI bursary & scholarships

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http://www.facebook.com/SFEngland http://twitter.com/sf_england

Given the increasing value of social media in communicatingkey information SFE has a presence on Facebook andTwitter, providing students various ways to interact with us

Social Media

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SFE on Facebook

Ask Questions/Live Q&A Forums Fun Applications

Information & Support Link to Help Videos

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Customer Helpline (for students & sponsors)

Help with applications

Info on student finance

But check website first!

8am to 8pm Monday to Friday9:30am to 5pm Saturday & Sunday

0845 300 5090

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OnlineApplicati

onProcess

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• Applications should be made to SFE as soon as possible to ensure payments can be made at start of the academicyear

• Applying online through www.direct.gov.uk/studentfinance is the quickest and easiest method

• No need to wait for confirmed offer from a university/college

• Students can indicate if they qualify for/wish to apply for DSA, CCG/PLA or ADG in which case we will provide the necessary details/forms

Applications

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• UCAS & Student Finance Data Share; Share key information between both forms to save time and effort

• Consent to share; Applicants and their parents/sponsorshare financial details provided with HEI’s helping identify student bursary/NSP entitlement

• Ensure any required evidence is supplied to support applications as soon as possible In most cases this will be;

Applications

*If applying for means tested support

• The students UK passport number • Their own and parent’s/partner’s* National Insurance Number

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Application Dates

Jan

2012

New students will be able to apply for student finance from…….TBC

Returning students can re-apply from…….TBC

May

31

The application deadline for new students is31st May 2012

Returning students should re-apply by 29th June 2012

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www.direct.gov.uk/studentfinance

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GettingPaid!

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Payment Process

• Core Student Finance is paid in 3 instalments

• Maintenance loan and any Maintenance Grant entitlements are paid together

• The 1st instalment triggered by enrolment.• The 2nd & 3rd instalments are automatically paid at

the start of each subsequent term

• Maintenance Loan & Grant are paid directly into the students bank account

• Tuition Fee Loans are paid directly to the HEI in separateinstalments

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LoanRepaymen

ts

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• Graduates will not make repayment contributions until they are earning at least £21,000 (£1,750 pm) grossThis threshold will rise annually in line with inflation

• Full time students will begin to repay in the April after Graduating from/leaving their HE course

• Part time students will begin to repay in the April 4 years after they have started their course

• Repayments will be a basic 9% of income £21,000 and will be deducted automatically from pay through the HMRC tax system for most students

Repayments

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• If income falls to £21,000 or below repayments will be suspended

• Outstanding loan debt will be written off after 30 years

• Interest will be added at RPI plus 3% while studying up to entering repayment

• Early repayment system sill in consultation

Repayments

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Under the 2012 system there will be a variation in the interest rate attached to the students loan;

Earnings below £21,000pa

• No real rate of interest applied to loan

Earnings between £21,000 – approx £41,000

• Real rate of interest will start to be charged, reachinga maximum of RPI plus 3%

Earnings over £41,000

• Interest charged at maximum RPI plus 3% rate

Repayments – Interest Rates

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Income each year before tax

Amount of income from which 9%

will be deducted

Approximate Monthly

Repayment

£21,000 £0 £0

£25,000 £4,000 £30

£30,000 £9,000 £68

£35,000 £14,000 £105

£40,000 £19,000 £143

£45,000 £24,000 £180

£50,000 £29,000 £218

£55,000 £34,000 £255

£60,000 £39,000 £293

Loan Repayments – 2012 Entrants

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Income each year before tax

Approximate monthly repayment

2011 Entrants 2012 Entrants

£15,000 £0 £0

£16,000 £8 £0

£18,000 £23 £0

£21,000 £45 £0

£24,000 £68 £23

£27,000 £90 £45

£30,000 £113 £68

£33,000 £135 £90

£36,000 £158 £113

£40,000 £188 £143

Loan Repayments – Comparison

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Starting Salary (Sep 2015)

Salary in 30 years at

today's prices

Total repaid at today's prices

Will I fully repay it?

£15,000 £26,000 Nothing No

£20,000 £35,000 £7,000 No

£21,000 £37,000 £11,000 No

£25,000 £44,000 £25,000 No

£30,000 £52,000 £43,000 No

£35,000 £61,000 £61,000 No

£45,000 £79,000 £73,000 Yes - 24 years

£50,000 £87,000 £68,000 Yes - 21 years

Borrowing £9,000 for fees & £5,500 living costs per year, £43,500 total With 3% inflation & graduate earnings growing at inflation + 2% per year

Loan Repayments – Today’s Money

www.moneysavingexpert.com/students/student-loans-tuition-fees-changes

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Practitioner

Resources

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• Practitioners’ Pack

• Downloadable Fact sheets

• Practitioners’ Website

• Practitioner Helpline Team

• Application Literature & Guidance

• Information (DSA/CCG)

Resources Overview

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www.practitioners.studentfinanceengland.co.uk

Practitioner Website

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Finance Packages

Regional Support

Downloadable Resources

Application Process

Practitioner Website

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Out with the Old……..

AY 2010/11

AY 2011/12

SFE Resources to Date

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……..In with the New!!

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Practitioner Resource Bank

• Modular/Sectional format

• Download and build your own student finance file

• Updated content added when available/necessary

• Register for updates on new content

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Practitioner Resource Bank

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Student Information

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Developed following partner survey & consultation

Parent/Sponsor Information

• Content Includes;

• Myths and facts• FAQ• How/when to apply• Repayment Information

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Parent/Sponsor Information

Also available in Powerpoint format

Student Finance myth & reality video. Available in long &

short versions

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New Practitioner Website (Due late 2011)

• Home page• Full & Part Time Finance• Additional Support• Resources• Designated Courses• Guidance Chapters• Latest News & Events• Regional Support

www.practitioners.slc.co.uk

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Stakeholder and DSA Bulletins

Fortnightly updates on national processing figures

www.slc.co.uk

SLC Corporate Site

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www.practitioners.studentfinanceengland.co.uk

Students & Parents/Sponso

rs

Customer Helpline

0845 300 5090

Customer Websitewww.direct.gov.uk/studentfinance

Expert Advicefor Practitioners

Practitioner Helpline

0845 602 0583

Practitioner Team Emailssin_queries@slc.co.uk

Local Supportfor Practitioners

Ben Rutter075544 58871

Local SFCben_rutter@slc.co.uk

SFE Support Channels

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QuestionsOr

Comments?