STUDENT FINANCE UPDATE
HIGHER EDUCATION ADVISORS’ CONFERENCE
9 JULY 2014
KATY BARGE
STUDENT FINANCE IAG TEAM
2015/16
www.gov.uk/studentfinance
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SESSION CONTENTS
• Section 1 – SLC Updates
• Section 2 – Student Finance Package 2015/16
• Section 3 – Common Concerns
• Section 4 – Applications & Information
• Section 5 - Resources
2015/16
SECTION 1
2015/16
SLC UPDATES
1
PROCESSING UPDATE
FULL TIME HIGHER EDUCATION
•
Application cycle for new full time students opened 20 January
•
As at 30 May just over 348,540 new applications received
(396,730 returning students) . 98.7% online
•
Over 1.15 million applications submitted in England for 2013/14
•
34% of applications submitted after the deadline last year (31 May 2013)
•
33% late applications received in the West Midlands region
•
2014 deadline 30 May for new students (27 June for returners)
2015/16
1
PROCESSING UPDATE
FULL TIME HIGHER EDUCATION
•
In 2013/14, 99.7% applications submitted on time processed by start
of term – BIS target 99%
•
86.7% applications processed within 20 working days – BIS target 70%
•
97% applications processed within 30 working days – BIS target 95%
•
91.7% student applications made online – BIS target 91%
•
82.1% sponsor supporting evidence supplied online – BIS target 65%
•
91.7% calls answered (6.1m) – BIS target 90%
J 2014 Annual Report available from:
www.slc.co.uk/media/annual-report.aspx
2015/16
1
TELEPHONE UPDATE
STUDENT LOANS COMPANY
•
The Student Loans Company has launched 030 phone numbers for all
customer lines, replacing 0845 business-rate phone charges
•
Effective from 1 April 2014
•
Customer calls will cost no more than calls to geographic (01 and 02)
numbers and will also count towards inclusive free call packages
on mobile phones
•
The customer help line for Student Finance England is 0300 100 0607
•
Practitioners’ help line has changed to 0300 100 0618
2015/16
1
STUDENT FINANCE WALES
MODERNISATION
• The Student Loans Company is responsible for the student
finance service in Wales for new students from 2014/15
• Returning students in 2014/15 will continue to apply to their LEA
• Responsible for both new and returning students from 2015/16
• Service launched 8 April. Deadline of 16 May for new students
• Dedicated Student Finance Advisers in place for Wales
• Resources available for teachers and advisers via
www.studentfinancewales.co.uk/practitioners
2015/16
1
APPLICATION UPDATE
PART TIME HIGHER EDUCATION
•
SFE part time application now
open for 2014/15
•
Online application available
•
Quick guide available to
download or order in hard copy
•
Full guide and fact sheet also
available to download via
Practitioners’ website
2015/16
1
APPLICATION UPDATE
FURTHER EDUCATION – 24+ ADVANCED LEARNING LOAN
•
2014/15 application cycle launched
mid April
•
Online application available
•
Eligible learners can apply at
www.gov.uk/advancedlearningloans
•
Dedicated resources suite available
via the Practitioners’ website
2015/16
SECTION 2
2015/16
THE STUDENT FINANCE
PACKAGE
2
FUNDING PACKAGE 2015/16
OVERVIEW
•
Student Finance package for 2015/16 announced 13 March
•
Regulations expected to come ‘into force’ end November 2014 subject to
final Parliamentary approval
•
Maximum tuition charges and tuition loans maintained at 2014/15 levels
•
Maximum Maintenance Grants and Disabled Students’ Allowances also
maintained
•
Maximum Maintenance Loans and grants for dependants (CCG, PLA,
ADG) will be increased by inflation – 3.34%
2015/16
Details of the changes can be found in the Policy section at:
www.practitioners.slc.co.uk
2
TUITION FEES & LOANS
OVERVIEW
•
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 alternative providers
2
DESIGNATION OF COURSES
ALTERNATIVE PROVIDERS
•
HEFCE has taken on responsibility for processing applications on behalf
of the Department for Business, Innovations and Skills
•
Process of deciding whether or not students attending alternative/private
institutions can access loans and grants from the SLC
•
Providers must meet criteria of teaching quality, financial sustainability,
management and governance, and course eligibility
•
HEFCE website lists HE courses at alternative providers that have course
designation:
•
http://www.hefce.ac.uk/whatwedo/reg/desig/
2015/16
MAINTENANCE LOAN
2
2015/16 RATES
Full-Year
Student*
65% Non Means
Tested
35% Means
Tested
Maximum Loan
Parental Home
£2,967
£1,598
£4,565
Elsewhere
£3,731
£2,009
£5,740
London
£5,205
£2,804
£8,009
Overseas
£4,433
£2,387
£6,820
2015/16
*Slightly lower rates of support apply to final year students
2
MAINTENANCE GRANT
2015/16 RATES
•
The Maintenance Grant doesn’t have to be repaid
•
How much grant a student can get depends on their household
income (100% means tested)
Household income thresholds maintained at 2014/2015 levels:
2015/16
Household Income:
Up to £25,000
Full Grant of £3,387
Household Income:
Up to £42,620
Partial Grant
COMBINED MAINTENANCE SUPPORT
2
LIVING AWAY FROM HOME, OUTSIDE LONDON
Household
Income
Maintenance
Grant
Maintenance
Loan
Total
£25,000 & under
£3,387
£4,047
£7,434
£30,000
£2,441
£4,520
£6,961
£35,000
£1,494
£4,993
£6,487
£40,000
£547
£5,467
£6,014
£42,620
£50
£5,715
£5,765
£42,875
£0
£5,740
£5,740
£50,000
£0
£4,998
£4,998
£62,143 & over
£0
£3,731
£3,731
2015/16
Students can get a quick estimate of their student finance
entitlement using the calculator on gov.uk/studentfinance
2
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
•
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
2
ADDITIONAL SUPPORT
DISABLED STUDENTS’ ALLOWANCES -CHANGES
Changes announced 7 April which will affect new DSA students from
2015/16 onwards. DSA funding will no longer be provided for the following
products and services:
•
Standard specification computers, software, and associated
peripherals – and higher spec due to course delivery
•
Warranties and insurance associated with standard specification
computers
•
Non-specialist non-medical help (NMH) support. DSA will continue to
fund the most specialist NMH (i.e. as outlined in the SLC NMH manual
bands three and four, and specialist roles)
2015/16
Further information available via www.practitioners.slc.co.uk in
the ‘Policy Information’ section’
2
INSTITUTIONAL SUPPORT
OVERVIEW
• NSP will cease as an undergraduate programme from 2015/16
• Refocused to support postgraduate students - £50m
• HE Providers expected to increase investment in widening access by
reaching £670 million in 2016/17
• From 2014/15, single budget for the Access to Learning Fund (ALF) and
the Student Opportunity allocation
• SO allocation may now also be used to support hardship – as well as
widening access, improving retention & supporting disabled students
• “Simplify funding streams where they seek to deliver a similar objective”
2015/16
2
BURSARIES & SCHOLARSHIPS
Many universities and colleges offer financial support to their students
through bursaries and scholarships
Bursaries:
• Linked to personal circumstances and often, household income
• Awards can include discounted tuition fees, accommodation or cash
Scholarships:
• Linked to academic results or ability in an area such as sport or music
• Can be subject specific and are limited in numbers
2015/16
Check university websites and ask at open days for information
on bursaries, scholarships and how and when to apply!
SECTION 3
2015/16
COMMON CONCERNS
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COMMON CONCERNS
!
Debt from a student loan will be unmanageable!
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The amount repayable will only increase with
earnings as repayments are based on
income, not how much a student has borrowed.
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Any loan remaining 30 years from the April
following graduation (or withdrawal if sooner) is
cancelled.
2015/16
3
COMMON QUESTIONS
!
If my child can’t afford to repay their loan then I’ll
have to foot the bill!?!
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Student loans are the sole responsibility of the
student who takes them out.
!
Will student loans have an affect on an application
for mortgages or other loans/credit in the future?
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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
3
STUDENT LOAN REPAYMENTS
IMPACT ON MORTGAGE APPLICATIONS
•
The Financial Conduct Authority has confirmed in it’s Mortgage Market
Review that student loan repayments have to be included as ‘committed
expenditure’ in mortgage applications
•
While this may effect how much a graduate can borrow, it does not
mean they can’t or won’t be able to successfully secure a mortgage
Quote from the Council of Mortgage Lenders:
•
‘Student loan debt is treated in the same way as other types of debt,
and regular repayments will reduce the disposable income, which is
used in the income multiple/affordability calculation’
2015/16
Further information can be found on the Council of Mortgage
Lenders website – www.cml.org.uk
3
COMMON QUESTIONS
!
If I move overseas will I still have to pay back my
student loan?
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Students must notify SLC if they intend to move
overseas for more than 3 months.
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As they are outside the UK tax system, we work
out monthly repayments via direct debit based
upon the earnings threshold for their destination
country.
2015/16
3
COMMON QUESTIONS
!
Will there be more support as I have more than
one child at university?
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£1,130 deduction from household income for any
child totally or mainly financially dependent.
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If household income above £42,875 parental
contribution figure will be equally split. Each child’s
max loan will be reduced equally so parents not
asked to contribute above this figure.
2015/16
3
COMMON CONCERNS
!
As a Muslim I am prevented from accessing HE
because of the interest bearing loans.
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Islamic Sharia law prohibits “Riba” – the paying
and receiving of interest above inflation.
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2015/16
BIS recently publicised a consultation paper
to see whether their possible solution would be
acceptable to UK Muslims.
2015/16
https://www.gov.uk/government/consultations/sharia-compliant-student-finance
SECTION 4
2015/16
APPLICATIONS & INFORMATION
4
STUDENT FINANCE APPLICATIONS
KEY MESSAGES – APPLY EARLY
Each year thousands of students apply late for their finance and
have no way to pay for their course or halls, some even have to drop out..
...don’t let that be you!
•
It will take at least six weeks to process your application so apply early
to make sure your student finance is ready for the start of your course
•
Apply online at gov.uk/studentfinance*
•
You don’t need a confirmed place at university or college to apply
for student finance
•
Apply with your first choice, you can change details later if you need to
2015/16
*When setting up your student finance account, be sure to keep
a note of your password and other log-in information!
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GOV.UK
FOR MORE INFORMATION & TO APPLY
www.gov.uk/studentfinance
2015/16
4
SFE ONLINE
FOR FURTHER INFORMATION & RESOURCES
www.thestudentroom.co.uk/studentfinance
www.facebook.com/SFEngland
www.twitter.com/sf_england
www.youtube.com/SFEFILM
2015/16
SECTION 5
2015/16
RESOURCES
5
PRACTITIONER RESOURCES
DEDICATED WEBSITE
www.practitioners.slc.co.uk
2015/16
5
PRACTITIONER RESOURCES
DEDICATED WEBSITE
Access and download our wide range of
IAG resources, including:
•
Factsheets and Guides
•
PowerPoint Presentations
•
Videos and Lesson Plans
•
Policy Documents and Updates
2015/16
5
PRACTITIONER RESOURCES
2014/15 APPLICATION DEMO
www.practitioners.slc.co.uk
2015/16
www.practitioners.slc.co.uk
5
THE STUDENT FINANCE TOUR
STUDENT AND PARENT TALKS
•
The BIS funded Student Finance Tour has been re-commissioned to
support 2015/16 entry
•
Presentations will focus on the cost of studying and the financial support
available for students starting a course from September 2015
•
Focus on Year 12 and Year 13
•
Initial Parent Tour running 30 June – 18 July
•
Student and Parent Tour will then run 8 September - 12 December
•
0151 350 1532 or email them on sft@events.com
2015/16
5
PRACTITIONER RESOURCES
SUPPORT FOR PRACTITIONERS
Student Finance Advisers:
Our team of dedicated regional advisers work closely with key partners
across England to deliver a range of services including:
•
•
Staff development through bespoke training,
Advice and support with SFE resources, policy and processes
If we can support you and your colleagues with any area of student finance
IAG delivery, please do get in touch:
http://www.practitioners.slc.co.uk/regional-support.aspx
2015/16
Practitioner Helpline: For detailed/complex regulatory advice
and particularly complex assessment enquiries - 0300 100 0618
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2015/16
PRACTTIONER RESOURCES
REGIONAL SUPPORT PAGES
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2015/16
QUESTIONS & COMMENTS