1213 Student Finance 2012 Session Contents Student Finance

12_13 £ Student Finance 2012

Session Contents • Student Finance 2012 • Research & Application 12_13 • Repayments

12_13 £ General Eligibility

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 12_13 • Tuition fee support only, without meeting residency requirements, for European Union/European Economic Area students • Exceptions exist for certain groups of students

12_13 Personal Eligibility - Exceptions • 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

Course/University/College Eligibility • 12_13 • • • Course Eligibility Courses must be of a certain type and be leading to a recognised higher education qualification. Including; First degree (BSc, BA, Bed) Foundation degree (Fd. A, Fd. Sc, Fd. Eng) Higher National Diploma or Higher National Certificate (HND/C) Diploma of Higher Education (Dip. HE) Postgraduate Certificate of Education (PGCE) University or College Eligibility The HEI must be publicly funded (by UK Government) or Privately funded but running individual courses receiving public funding as designated by the Government

Previous Study Rules • General rule – Tuition fee loan available for full length of the student’s course, plus one additional year if needed 12_13 • 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)

12_13 £ Student Finance Package

Student Finance Package Tuition Fee Loan 12_13 Additional Support Student Finance Package Scholarships & Bursaries Maintenance Support

12_13 £ Tuition Fee Loan

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* 12_13 • 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

Tuition Fee Loan Tuition Fee Liability 12_13 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 First day of Term 2 First day of Term 3 25% 50% Interest on the loan will be charged from day payment is made to the university/college not from the liability date

Paying the Tuition Fee Loan • Eligible students will not have to pay up front for their tuition • The non means tested tuition fee loan (not dependant on household income) is available to cover the fee levels set by the HEI (up to £ 9000 max) 12_13 • 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

Sandwich Years/Private Providers Tuition Fee Loan • 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 12_13 • 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* *If the institution is charging more, the student will have to self-fund the remainder

Part Time Students Tuition Fee Loan • 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* 12_13 • 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

12_13 £ Maintenance Support

Maintenance Loan Maintenance Support 12_13 • 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 Specific Amounts 12_13 Full-Year Student Maintenance Support 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 Students attending their course beyond 30 weeks, additional means tested loan is available for each additional week of study

Maintenance Support Maintenance Loan Changes in maintenance loan levels 12_13 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 For income exceeding £ 42, 600 and up to £ 42, 875 the maximum loan will be awarded (If applied for)

Maintenance Grant Maintenance Support • The maximum non repayable maintenance grant level in 2012 is £ 3250 • Unlike 100% of the tuition fee loan and up to 65% of the maintenance loan, the grant a student receives is solely dependant on household income levels (100% Means Tested) 12_13 • 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 If awarded the grant, the amount of maintenance loan entitlement is reduced by 50 p for every £ 1 of grant the student is entitled to (up to £ 1, 625)

Maintenance Support Combined Support Student living away from home outside London 2012/13 12_13 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 £ 5, 288 £ 50, 000 £ 4, 788 £ 55, 000 £ 4, 288 £ 60, 000 £ 3, 788 £ 62, 500 & over £ 0 £ 3, 575

Special Support Grant Tuition Fee Maintenance Support Loan • 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 12_13 • 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

12_13 £ Scholarships & Bursaries

Scholarships & Bursaries 12_13 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

National Scholarships (NSP) Scholarships & Bursaries Real help for students with the costs of study. Options could include: 12_13 • • Fee waiver or discount Free foundation year Discounted accommodation or other service Scholarship/bursary – capped as a cash award at £ 1, 000.

12_13 £ Additional Support

Disabled Students Allowance Additional Support • 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 12_13 • Is not affected by the household income • Looks at the specific needs of the individual in relation to their studies

Additional Support Disabled Students Allowance 12_13 DSA Allowance rates 2012/13 Allowance Part-time maximum support Full-time maximum Support Frequency of Payment Non-medical personal helper £ 15, 390 £ 20, 520 Annual Specialist equipment £ 5, 161 Duration 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

Additional Finance Additional Support 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) 12_13 • The amount the student receives will be dependent on household 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 Finance Additional Support 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 12_13 • 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 dependant whose net income does not exceed £ 3, 796

Additional Finance Additional Support Parents’ Learning Allowance • For help with course-related costs for students with dependent children 12_13 • The amount received will be between £ 50 and £ 1, 508 dependent 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

12_13 £ Student Research

12_13 www. yourfuture. direct. gov. uk

12_13 www. direct. gov. uk/studentfinance

Scholarship/Bursary Information 12_13 www. direct. gov. uk A-Z Search of National Scholarships offered by individual HEI’s www. ucas. com Course Search includes: Information on fee levels and links to HEI bursary & scholarships

Social Media Given the increasing value of social media in communicating key information SFE has a presence on Facebook and Twitter, providing students various ways to interact with us 12_13 http: //www. facebook. com/SFEngland http: //twitter. com/sf_england

SFE on Facebook Fun Applications Information & Support Link to Help Videos 12_13 Ask Questions/ Live Q&A Forums

Customer Helpline (for students & sponsors) Help with applications Info on student finance But check website first! 12_13 8 am to 8 pm Monday to Friday 9: 30 am to 5 pm Saturday & Sunday 0845 300 5090

12_13 £ Online Application Process

Applications • Applications should be made to SFE as soon as possible to ensure payments can be made at start of the academic year • Applying online through www. direct. gov. uk/studentfinance is the quickest and easiest method 12_13 • 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 • UCAS & Student Finance Data Share; Share key information between both forms to save time and effort • Consent to share; Applicants and their parents/sponsor share financial details provided with HEI’s helping identify student bursary/NSP entitlement 12_13 • Ensure any required evidence is supplied to support applications as soon as possible In most cases this will be; • The students UK passport number • Their own and parent’s/partner’s* National Insurance Number *If applying for means tested support

Application Dates Jan 2012 12_13 May 31 New students will be able to apply for student finance from……. TBC Returning students can re-apply from……. TBC The application deadline for new students is 31 st May 2012 Returning students should re-apply by 29 th June 2012

12_13 www. direct. gov. uk/studentfinance

12_13 £ Getting Paid!

12_13 Payment Process • Core Student Finance is paid in 3 instalments • Maintenance loan and any Maintenance Grant entitlements are paid together • The 1 st instalment triggered by enrolment. • The 2 nd & 3 rd 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 separate instalments

12_13 £ Loan Repayments

12_13 Repayments • Graduates will not make repayment contributions until they are earning at least £ 21, 000 (£ 1, 750 pm) gross This 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 • 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 12_13 • Early repayment system sill in consultation

Repayments – Interest Rates Under the 2012 system there will be a variation in the interest rate attached to the students loan; Earnings below £ 21, 000 pa • No real rate of interest applied to loan Earnings between £ 21, 000 – approx £ 41, 000 12_13 • Real rate of interest will start to be charged, reaching a maximum of RPI plus 3% Earnings over £ 41, 000 • Interest charged at maximum RPI plus 3% rate

Loan Repayments – 2012 Entrants 12_13 Amount of income Income each year before Approximate Monthly from which 9% will be tax Repayment deducted £ 21, 000 £ 0 £ 25, 000 £ 4, 000 £ 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 – Comparison 12_13 Income each year before tax Approximate monthly repayment 2011 Entrants 2012 Entrants £ 15, 000 £ 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 – Today’s Money 12_13 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 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 No £ 45, 000 £ 79, 000 £ 73, 000 Yes - 24 years £ 50, 000 £ 87, 000 £ 68, 000 Yes - 21 years www. moneysavingexpert. com/students/student-loans-tuition-fees-changes

12_13 £ Practitioner Resources

12_13 Resources Overview • Practitioners’ Pack • Downloadable Fact sheets • Practitioners’ Website • Practitioner Helpline Team • Application Literature & Guidance • Information (DSA/CCG)

12_13 Practitioner Website www. practitioners. studentfinanceengland. co. uk

12_13 Practitioner Website Finance Packages Regional Support Application Process Downloadable Resources

SFE Resources to Date 12_13 AY 2010/11 AY 2011/12 Out with the Old……. .

12_13 ……. . In with the New!!

Practitioner Resource Bank • Modular/Sectional format • Download and build your own student finance file 12_13 • Updated content added when available/necessary • Register for updates on new content

12_13 Practitioner Resource Bank

12_13 Student Information

Parent/Sponsor Information • Content Includes; 12_13 • • Myths and facts FAQ How/when to apply Repayment Information Developed following partner survey & consultation

Parent/Sponsor Information 12_13 Student Finance myth & reality video. Available in long & short versions Also available in Powerpoint format

New Practitioner Website (Due late 2011) Home page Full & Part Time Finance Additional Support Resources Designated Courses Guidance Chapters Latest News & Events Regional Support 12_13 • • www. practitioners. slc. co. uk

SLC Corporate Site Stakeholder and DSA Bulletins 12_13 Fortnightly updates on national processing figures www. slc. co. uk

12_13 SFE Support Channels Students & Parents/Sponsors Customer Helpline 0845 300 5090 Expert Advice for Practitioners Practitioner Helpline 0845 602 0583 Practitioner Team Email ssin_queries@slc. co. uk Local Support for Practitioners Ben Rutter 075544 58871 Local SFC ben_rutter@slc. co. uk Customer Website www. direct. gov. uk/studentfinance www. practitioners. studentfinanceengland. co. uk

12_13 £ Questions Or Comments?