2015/16
www.gov.uk/studentfinance
i
SESSION CONTENTS
• Section 1 – SFE & The Student Finance Package
• Section 2 – Applications & Information
• Section 3 – Student Loan Repayments
• Section 4 – Money Management
• Questions or Comments
2015/16
SECTION 1
2015/16
STUDENT FINANCE ENGLAND
SECTION 1
STUDENT FINANCE ENGLAND
AN INTRODUCTION
Student Finance England provide financial support on behalf of the UK
Government to students from England entering higher education in the UK.
•
The two main costs full-time students will have while studying are
tuition fees and living costs.
•
SFE make finance available to help students with both.
•
Depending on their circumstances, course and where they study,
students may be able to get a range of financial help and support .
•
This includes grants and bursaries (which don’t have to be paid back)
and loans (which do).
2015/16
SECTION 1
2015/16
THE STUDENT FINANCE
PACKAGE*
*All figures used in this section are subject to final approval
of the 2015/16 student finance policy
TUITION FEE Loan
SECTION 3
Extra Support
SECTION TITLE IN HERE
SUBHEADER IN HERE
Maintenance
Support
2015/16
SECTION 1
HOW MUCH DO YOU KNOW?
TUITION FEES – CAN STUDENTS AFFORD IT?
Q
A
What’s the maximum tuition fee universities or colleges
can charge new students in 2015/16?*
£9,000
Q
How much of this will students need to pay up front
before they go to uni or college?*
A
£0 – Regardless of your household income, a Tuition
Fee Loan is available to all eligible students.
2015/16
*Eligible English domiciled students studying at a publicly
funded university or college
SECTION 1
TUITION FEES AND LOANS
AN OVERVIEW
•
Universities and colleges* can charge new full-time students up to
£9,000 per year in 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 the Tuition Fee Loan directly to a university or college.
•
The loan is repayable, but only when a student’s income is over £21,000.
2015/16
*Publicly funded institutions
**Up to £6,000 for approved courses at private providers
Tuition Fee Loan
SECTION 3
Extra Support
SECTION TITLE IN HERE
SUBHEADER IN HERE
MAINTENANCE
Support
2015/16
SECTION 1
MAINTENANCE SUPPORT
AN OVERVIEW
•
Maintenance support is available to help students with their living costs
while in higher education.
•
There are two main types of support, Maintenance Loan (repayable)
and Maintenance Grant (non-repayable).
•
All eligible students are entitled to receive some Maintenance support.
•
The amount of Maintenance Loan a student gets depends on where
they live and study.
•
Maintenance support is paid directly into a student’s bank account each
term.
2015/16
SECTION 1
MAINTENANCE LOAN
MAXIMUM LEVELS 2015/16
Parental Home
Live at home while they study
Up to
£4,565
Elsewhere
Live away from home & study outside London
London
Live away from home & study in London
i
2015/16
Up to
£5,740
Up to
£8,009
If studying overseas as part of a UK course, Maintenance
Loan support is still available; up to £6,820 for 2015/16.
SECTION 1
MAINTENANCE LOAN
MAXIMUM LEVELS 2015/16
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
*Lower rates are available to final year students
i
2015/16
Additional loan may be available for any extra weeks of study
if a course goes beyond 30 weeks in an academic year.
SECTION 1
MAINTENANCE GRANT
SUPPORT AND MEANS TESTING
•
The Maintenance Grant doesn’t have to be repaid.
•
How much grant a student gets depends on their household income
(100% means tested).
i
2015/16
Household Income:
Up to £25,000
Full Grant:
£3,387
Household Income:
Up to £42,620
Partial Grant:
(Min £50)
Household income is the taxable earned and unearned income
of the parents/partner a student lives with most of the time.
SECTION 1
SUPPORTING AN APPLICATION
HOUSEHOLD INCOME
If supporting an application for means tested student finance, SFE will
need details of a student’s parents’ or other sponsor’s household (taxable)
income and National Insurance numbers.
Taxable earned income includes*:
• wages, salaries, tips, and other taxable employee pay
• long-term disability benefits received prior to minimum retirement age
• net earnings from self-employment
Taxable unearned income includes*:
• interest from savings (only the annual summary is required)
• benefits and pensions
• rent from property or a room
i
2015/16
*More details/information can be found on the HMRC website:
http://www.hmrc.gov.uk/incometax/taxable-income.htm
SECTION 1
COMBINED MAINTENANCE SUPPORT
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
i
2015/16
The calculator found on gov.uk/studentfinance can provide
an estimate of student finance entitlement.
Tuition Fee Loan
SECTION 3
EXTRA Support
SECTION TITLE IN HERE
SUBHEADER IN HERE
Maintenance
Support
2015/16
SECTION 1
EXTRA SUPPORT
BURSARIES AND 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 usually limited in numbers
i
2015/16
Students should check university/college websites and ask at
open days to see what they offer and how/when apply.
SECTION 1
EXTRA SUPPORT
EXTRA HELP MAY ALSO BE AVAILABLE IF STUDENTS….
•
have children or an adult dependent on them
•
have a disability, long-term health condition, mental-health condition
or specific learning difficulty
•
study overseas as part of their UK-based course
•
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
i
2015/16
For more information on eligibility and applications for NHS
support go to: www.nhsbsa.nhs.uk/students
SECTION 2
2015/16
2015/16
APPLICATIONS & INFORMATION
Students APPLY on time
They get PAID!
We ASSESS their
application
2015/16
2015/16
SECTION 2
HOW MUCH DO YOU KNOW?
STUDENT FINANCE APPLICATIONS
Q
What is the easiest way for students to apply for their
student finance (and for you to support their application)?
a) Call SFE and ask for an application form to be sent out
b) Online
@ www.gov.co.uk/studentfinance
b) Online
@ www.gov.uk/studentfinance
c) Apply? Doesn’t the money just appear when they need it?!
A
Q
When should students apply for their student finance?
a) After they have started their course
b) When
have
a confirmed offer from a university or college
c) Asthey
soon
as possible
c) As soon as possible
A
2015/16
SECTION 2
STUDENT FINANCE APPLICATIONS
KEY MESSAGE – APPLY EARLY
Each year thousands of students apply late for their finance and have no
way to pay for their course or accommodation, some even have to drop out
....don’t let that be your son or daughter!
•
It will take at least six weeks to process an application so encourage
them to apply early so their funding is ready for the start of their course.
•
Apply online at gov.uk/studentfinance*
•
Students don’t need a confirmed place at university or college to apply.
•
Apply with their first choice, they can change details later if necessary.
i
2015/16
*Students can register on UCAS and check the SFE websites
for updates on when to apply for student finance.
SECTION 2
GOV.UK
FOR THE INFORMATION YOU NEED
2015/16
www.gov.uk/studentfinancesteps
SECTION 2
STUDENT FINANCE APPLICATIONS
KEY MESSAGE – COMPLETING AN APPLICATION
Before starting an application students should have the following to hand:
•
•
•
passport – SFE can check identity using valid UK passport details
university and course details
bank account details and National Insurance number
The easiest way for parents, partners or other sponsors to support an
application is online through GOV.UK, providing information including:
•
•
•
National Insurance number(s)
household income information (based on prior tax year*)
details of other child dependants
i
2015/16
*If your household income drops by 15% or more in the current
tax year, SFE can reassess an application.
SECTION 2
SFE ONLINE
FOR MORE INFORMATION AND RESOURCES
www.thestudentroom.co.uk/studentfinance
www.facebook.com/SFEngland
www.twitter.com/sf_england
www.youtube.com/SFEFILM
2015/16
SECTION 3
2015/16
STUDENT LOAN REPAYMENTS
The FACTS
SECTION 3
The INTEREST
SECTION TITLE IN HERE
SUBHEADER IN HERE
The FIGURES
2015/16
SECTION 3
HOW MUCH DO YOU KNOW?
STUDENT LOAN REPAYMENTS – UNMANAGEABLE?
Q
What are a student’s loan repayments based on?
a) Their future income
b) How
much
they income
have borrowed
a) Their
future
c) Neither, they just pay a fixed amount regardless
A
Q
How much do students need to earn before they start to
repay?
a) £16,000 a year
b) £21,000
a year
b) £21,000
a year
c) Doesn’t matter, repayments will be taken whatever they earn
A
2015/16
SECTION 3
HOW MUCH DO YOU KNOW?
STUDENT LOANS – COMMON CONCERNS
!
If my child can’t afford to repay their loan then I’ll have to
foot the bill!?!
A
Student loans are the sole responsibility of the student
who takes them out
?
Will student loans have an affect on an application for loans
or credit in the future?
A
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
SECTION 3
HOW MUCH DO YOU KNOW?
STUDENT LOANS – COMMON CONCERNS
?
Will a student loan impact on getting a mortgage?
A
Student loan repayments now have to be included as
‘committed expenditure’ in mortgage applications
i
i
2015/16
While this may effect how much a graduate can borrow, it
doesn’t mean they can’t or won’t be able to successfully
secure a mortgage
Further information can be found on the Council of Mortgage
Lenders website – www.cml.org.uk
SECTION 3
STUDENT LOAN REPAYMENTS
AN OVERVIEW
•
Students won’t make repayments until their income is
over £21,000 a year gross (before tax).
•
If they study a full-time course, students will be due to start repaying
in the April after graduating from/leaving higher education.
•
They’ll repay 9% of their income over £21,000 and if employed,
deductions will be made from their pay through the HMRC tax system.*
•
If their income falls to £21,000 or below their repayments will stop.
•
Any outstanding loan balance will be written off 30 years after entering
repayment.
i
2015/16
*If they move/work overseas they will repay 9% of any earnings
over the repayment threshold for the country they are living in.
SECTION 3
STUDENT LOAN REPAYMENTS
THE FIGURES
Income each year
before tax
9% will be deducted
from
Monthly Repayment
£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
i
2015/16
9% Deducted
£4,000
from?
(Approx)
Monthly
£30
Repayment?
Early repayments can be made at any time (with no penalty) if
a student wants to reduce their loan balance early.
SECTION 3
STUDENT LOAN REPAYMENTS
THE INTEREST
Interest levels will depend on a student’s income and circumstances:
During study until
entering repayment
Income:
Under £21,000
i
2015/16
Interest Rate:
Retail Price Index +3%
Interest rate is:
Rate:
Set atInterest
RPI Only
RPI Only
Income:
Interest Rate:
£21,000 to £41,000
RPI + up to 3%
Income:
Interest Rate:
Over £41,000
RPI +3%
The interest rate is updated once a year using the RPI figure
from March which is carried forward and applied in September.
SECTION 4
2015/16
MONEY MANAGEMENT
Consider the COSTS
SECTION 3
Points to REMEMBER
SECTION TITLE IN HERE
SUBHEADER IN HERE
Plan a BUDGET
2015/16
SECTION 4
MONEY MANAGEMENT
CONSIDER THE COSTS
Before starting in higher education, it’s important students think about the
costs they are likely to face and how to manage their money.
Students need to remember they get their maintenance support payments
each term and will need to pay for things like:
•
books and other study materials
•
accommodation, food and drink
•
sports, leisure and social activities
There will also be other costs they may not have thought of yet such as
insurance or a TV Licence...so they should think about planning a budget!
2015/16
SECTION 4
MONEY MANAGEMENT
HOW MUCH?
New
?
£26.99
Q
How much does this textbook cost?
Used
£15.76
?
1 Year
Q
?
£12
How much is an NUS Extra card?
?
3 Year
£32
2015/16
SECTION 4
MONEY MANAGEMENT
HOW MUCH?
?
£118.49
Q
What is the average weekly cost of
student accommodation?
From
Q
2015/16
unless
they
want to eat itjarcold.....
And for
some
flavour.....This
of
How much is this bag of pasta?
...onesauce
of these
might be useful!
tasty
costs?
*Figures from NUS based on university-owned accommodation
(including privately owned student accommodation = £123.96)
?
29p
39p
£2.25
SECTION 4
KEY MESSAGES
POINTS FOR STUDENTS TO REMEMBER
•
Important to make the right university/college and course choice!!
•
Tuition Fee Loans are available to all eligible students.
•
Future repayments are linked to a student’s income, not what they owe!
•
Research all finance available – especially bursaries & scholarships.
•
Apply online & on time – no need to wait for a confirmed place.
•
Check all details are correct before submitting an application.
2015/16
2015/16
www.gov.uk/studentfinance
i
NEED MORE INFORMATION?
REMEMBER SFE IS ONLINE
For further information on student finance and
applications go to:
www.gov.uk/studentfinance
i
For a range of helpful tools and guidance,
visit:
www.thestudentroom.co.uk/studentfinance
2015/16