FINANCEFINANCE

Steve WilsonSteve Wilson

The Cost of Higher Education

• Student Loans for Tuition Fees

• Student Loans for Living Costs / Maintenance

UK Tuition Fees 2013/14

• Universities in the UK can charge up to £9,000 a year for full time courses

• Situation in Scotland is complicated

Help Towards Tuition Fees

• Fees no longer paid up front

• Students apply for Student Loan for fees – every student entitled to this loan

• Money paid directly to your college or university

• Students repay these loans once left university and earning £21,000

Still possible to pay university fees directly in order to avoid accruing any debt.

Student Loans for Maintenance / Living Costs• Loans for living costs are available• Paid directly to student in three instalments• Everyone entitled regardless of income to 65% of the loan• Remaining 35% is means tested against household income

2013/14 Student Living at Home

Student Living away from home in London

Student Living away from home outside

London

Maximum : Full Year Loan Rate

£4,375 £7,675 £5,500

Around 65% not income assessed

£2,843 £4,988 £3,575

Around 35% income assessed

£1,532 £2,687 £1,925

Repayment of Loan for Living Costs

Tuition Fee Loans and Maintenance Loans added together

•Loan repaid once left university and earning above £21,000 per year

•Repayment linked to earnings: 9% of any amount that is earned above the £21,000 threshold

eg £25,000 - £30 per month£35,000 - £105 per month£50,000 - £217 per month

•Outstanding balance written off after 30 years

•Many will never repay their debt in full

•‘Above inflation’ interest is charged – this does not affect the repayment cost each month but it is added to the overall amount owed – i.e. it takes longer to pay off debt.

Further Help with Living Costs

Maintenance Grant • Full Time students from lower income households are eligible for the non-repayable Maintenance

Grant worth up to £3,354 per year. Students with household income under 42,611 get Maintenance Grants.

2013/14 Household Income Proposals

• £25,000 or less - Receive full grant of £3,354• Between £25,001 and £42,611 - Partial Grant• More than £42,611 - No grant

• Student Loan for Maintenance will reflect this Grant, i.e. Maintenance Loan will be reduced by 50p for every £1 of Maintenance Grant

• Maintenance Grant paid in three instalments

• Tuition Fee Loan, Maintenance Loan and Maintenance Grant all applied for on one on line application if you agree to have household income assessed.

Examples Of Support Packages Available For Students Living Away From Home

Household Income

Non-Repayable Maintenance Grant

Maintenance Loan

Total

£25,000 or less £3,354 £3,823 £7,177

£30,000 £2,461 £4,292 £6,708

£35,000 £1,487 £4,761 £6,239

£40,000 £540 £5,230 £5,770

£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

Over £62,125 £0 £3,575 £3,575

Bursaries and Scholarship

From 2012Universities charging over £6000 have to provide financial help to those studentsfrom lower income households.

University Bursaries• Additional Money (could be gift in kind) from Universities – non repayable bursaries• Vary in amount• Many universities will give Bursaries to students who are eligible for part of the Maintenance Grant.

National Scholarship Scheme (NSP)- Universities will give additional financial support to students whose family income is £25,000 or less- This NSP award will not affect any other finance the student may get- Money will vary from university to university- List of Universities which offer NSP available on direct.gov website

Scholarships• Lots available• Cash or gift in kind based on academic ability (usually A Level grades)• Contact University directly• Student needs to be pro-active

Useful Websiteswww.support4learning.org.uk

www.moneysavingexpert.com/students

www.direct.gov.uk/studentfinance

www.dfes.gov.uk/studentsupport

www.studentfinancedirect.co.uk‘A guide to Financial Support For Higher Education Students’

‘Higher Education Student Finance How you are Assessed and Paid’

Is a Degree Worth the DebtIs a Degree Worth the Debt ? ?In financial terms this is less clear cut than it used to be:In financial terms this is less clear cut than it used to be:

40 per cent of school-leavers now going on to university, 40 per cent of school-leavers now going on to university, compared to lesscompared to less

than 10 per cent a generation ago. (Daily Telegraph)than 10 per cent a generation ago. (Daily Telegraph)

Graduate employment prospects vary depending on:Graduate employment prospects vary depending on:

- The degree being studiedThe degree being studied- Graduate prospects in that field at the timeGraduate prospects in that field at the time- The university attendedThe university attended

““Despite difficult graduate employment at the moment, it's Despite difficult graduate employment at the moment, it's worth remembering that, on average, graduates earn £100,000 worth remembering that, on average, graduates earn £100,000 more over their working lifetime, compared with those who more over their working lifetime, compared with those who haven't been to university." haven't been to university." President of the National Union of Student President of the National Union of Student