STUDENT FINANCE MATTERS
Wyggeston and Queen Elizabeth I College
Progression Evening
24th June 2014
Kevin McMullan
Student Finance Adviser
2015/16
www.gov.uk/studentfinance
1
THE STUDENT FINANCE PACKAGE
SUPPORT AVAILABLE TO STUDENTS INCLUDES:
TUITION FEE LOAN
MAINTENANCE SUPPORT
BURSARIES & SCHOLARSHIPS
ADDITIONAL SUPPORT
2015/16
All figures used in this section are subject to final parliamentary
approval of 2015/16 student finance policy
1
TUITION FEES & LOANS
•
Universities and colleges* can charge new full-time students up to
£9,000 per year (£6,750 part-time) for tuition fees
•
Eligible students won’t have to pay any tuition fees up front
•
A Tuition Fee Loan is available to cover the fee charged by a university
or college**
•
A Tuition Fee Loan doesn’t depend on household income
•
SFE pay any Tuition Fee Loan directly to your university or college
•
The loan is repayable, but only when your income is over £21,000
2015/16
*Publicly funded institutions
**Up to £6,000 available for approved courses at private providers
1
MAINTENANCE SUPPORT
•
Maintenance support is available to help with your living costs while
in higher education
•
Two main types of support are available, Maintenance Loan and
Maintenance Grant
•
The Maintenance Loan is repayable and all eligible students are
entitled to receive some funding
•
The amount of loan available will depend on where you live and study
•
Maintenance support is paid directly into your bank account each term
2015/16
1
MAINTENANCE LOAN
EXAMPLE 2015/16 MAXIMUM RATES
Parental Home - Live at
home
Up to
£4,565
Elsewhere - Live away from home
and study outside of London
Up to
£5,740
London - Live away from home and study in
London
Overseas - Study overseas as part of
a UK course
2015/16
Up to
£6,820
Up to
£8,009
1
MAINTENANCE GRANT
•
The Maintenance Grant doesn’t have to be repaid
•
How much grant you can get depends on your household income
(100% means tested)
Household income thresholds 2015/16:
2015/16
Household Income:
Up to £25,000
Full Grant of £3,387
Household Income:
Up to £42,620
Partial Grant
You can get a quick estimate of your student finance entitlement
using the calculator on gov.uk/studentfinance
1
ADDITIONAL SUPPORT
EXTRA SUPPORT MAY BE AVAILABLE IF YOU:
•
Have children or adults dependent on you
•
Have a disability, long-term health condition, mental-health condition
or specific learning difficulty
•
Care Leavers may attract additional funding from the local authority
•
Study an NHS or Social Work course
NHS courses include:
nursing, midwifery, physiotherapy, speech and language therapy,
dietetics, radiography , the later stages of medicine and dentistry
2015/16
For more information on eligibility and applications for NHS
support go to: www.nhsbsa.nhs.uk/students
SECTION 2
2015/16
STUDENT LOAN REPAYMENTS
2
STUDENT LOAN REPAYMENTS
AN OVERVIEW
•
You won’t make repayments until your income is over £21,000 a year
gross (before tax)
•
Full-time students will be due to start repaying in the April after
graduating from/leaving their higher-education course
•
You’ll repay 9% of your income over £21,000 and if you’re employed
deductions will be made from your pay through the HMRC tax system
•
If your income falls to £21,000 or below your repayments will stop
•
Any outstanding loan balance will be written off 30 years after entering
repayment
2015/16
2
STUDENT LOAN REPAYMENTS
THE FIGURES
Income each year
before tax
Income from which
9% is deducted
Monthly Repayment
(Approx)
£21,000
£0
£0
£30,000
£9,000
£67
£40,000
£19,000
£142
£50,000
£29,000
£217
£60,000
£39,000
£292
Income
£25,000
9% Deducted
£4,000
from?
£
2015/16
£
Monthly
£30
Repayment?
Interest will be applied to your loan at a maximum rate of RPI +3%
More info can be found on: www.studentloanrepayment.co.uk
!
2015/16
COMMON CONCERNS
!
COMMON CONCERNS
TUITION FEES
!
My child can’t afford to go to university, it’s far too
expensive!
i
No eligible students will have to pay their tuition
fees up-front to go to university or college
i
Regardless of household income, eligible students
can apply for a Tuition Fee Loan to help with the
cost of fees, and a Maintenance Loan to help with
their living costs
2015/16
!
COMMON CONCERNS
REPAYMENTS
!
Debt from a student loan will be unmanageable!
i
Repayments don’t start until your child’s income
is over £21,000 a year. They’ll then repay only
9% of their income over this threshold
i
The amount they repay will only increase with
their earnings as repayments are based on their
income, not how much they’ve borrowed
2015/16
!
COMMON CONCERNS
GENERAL
!
If my child can’t afford to repay their loan then I’ll
have to foot the bill!?!
i
Student loans are the sole responsibility of the
student who takes them out
!
What effect will student loans have on applications
for mortgages or other loans/credit in the future?
i
Student loans are unsecured government lending
and are very different to commercial loans. They
don’t go on credit files or show up on credit checks
2015/16
i
KEY MESSAGES
POINTS TO BE CLEAR ON
•
Important to make the right university/college and course choice!!
•
Tuition Fee Loans are available to all eligible students and future
repayments are linked to your income, not what you owe
•
Research all finance available – especially bursaries & scholarships
•
Apply on-line & on time – no need to wait for a confirmed place
•
Check all details are correct before submitting your application
•
If in doubt, ask
2015/16
i
NEED MORE INFORMATION?
For further Information on student finance and
applications go to:
www.gov.uk/studentfinance
For a range of helpful tools and guidance,
visit:
www.thestudentroom.co.uk/studentfinance
2015/16
www.gov.uk/studentfinance