STUDENT FINANCE 2014/15

Paul Shipton

Student Finance Wales

SESSION CONTENTS

Section 1 - The Student Finance PackageSection 2 – Student Loan RepaymentSection 3 – Applications & InformationSection 4 – Money Management

STUDENT FINANCE WALESOVERVIEW

Student Finance Wales provide financial support on behalf of the Welsh Government to students from Wales entering higher education in the UK:

• The two main costs full-time students will have while studying are tuition fees and living costs

• SFW 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)

COMMON CONCERNS

COMMON CONCERNSTUITION FEES

! My child can’t afford to go to university, it’s far too expensive!

i Regardless of household income, eligible students can apply for a Tuition Fee Loan & Grant to help with the cost of fees, and a Maintenance Loan to help with their living costs

iNo eligible students will have to pay their tuitionfees up-front to go to university or college*

COMMON CONCERNSREPAYMENTS

iRepayments 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

! Debt from a student loan will be unmanageable!

i The amount they repay will only increase with their earnings as repayments are based on their income, not how much they have borrowed

THE STUDENT FINANCE PACKAGE 2014/15

THE STUDENT FINANCE PACKAGESUPPORT AVAILABLE TO STUDENTS INCLUDES:

Bursaries & Scholarships

Tuition Fee Support

Maintenance (Living Cost) Support

Additional Support

The

Student Finance

Package

TUITION FEESOVERVIEW

• Currently capped at £9,000 per year.

• The tuition fee will be decided by the university or college including if it charges different amounts for different courses

• The average tuition fee for new students in 2012 was around £8,389

• Students at private universities or colleges offering designated courses will be able to borrow up to £6,000* towards tuition costs

• *Students will have to self-fund any additional fee charged

TUITION FEESTUITION FEE SUPPORT

•A Tuition Fee Loan of up to £3,685 is available as well as a Tuition Fee Grant to cover the difference between the available Tuition Fee Loan and the Tuition Fee charged by your university

•For courses with £9,000 Tuition Fees you would receive a maximum Tuition Fee Grant of £5,315

•Tuition Fee Loans and Tuition Fee Grants are paid direct to your university or college

•Tuition Fee Loans are repayable, but only when you’ve left university or college and your income is over £21,000 a year

•If you leave or finish your course before April 2016, you won’t start making repayments until after this date

THE STUDENT FINANCE PACKAGE 2014/15MAINTENANCE SUPPORT

HOW MUCH? – ACCOMMODATION

QWhat’s the average weekly cost of student accommodation?

A £117 per week*

? Lowest ? £46pw

? Highest ? £415pw

*Approximate figures from The Guardian based on university owned accommodation

MAINTENANCE SUPPORT

• Maintenance support is available to help with living costs a studentwill have while in higher education

• Two main types of support are available, Maintenance Loan and Welsh Government Learning 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 a student lives and studies

• Maintenance support is paid directly into the student’s bank account each term

MAINTENANCE SUPPORTMAINTENANCE LOAN 2014/15 MAXIMUM RATES

Full-Year Student (*) 75% Non Means Tested

25% Means Tested

Maximum Loan

Parental Home £3,020 £1,007 £4,027

Elsewhere £3,902 £1,300 £5,202

London £5,466 £1,822 £7,288

Overseas £4,652 £1,550 £6,202

(*) Slightly lower rates of support apply to final year students!

Additional means tested loan is available for each extra week ofstudy for students attending their course beyond 30 weeks!

MAINTENANCE SUPPORTWELSH GOVERNMENT LEARNING GRANT

• The Welsh Government Learning Grant doesn’t have to be repaid

• How much grant a student can get depends on their household income

Household income thresholds for 2014/2015:

Household Income:Up to £18,370

Household Income:Up to £50,020

Full Grant of £5,161

Partial Grant

MAINTENANCE SUPPORTCOMBINED SUPPORT:

Household Income £Welsh Gov

Learning GrantMaintenance Loan Total

£18,370 & under £5,161 £2,622 £7,783

£20,000 £4,715 £2,845 £7,560

£25,000 £3,347 £3,529 £6,876

£26,500 £2,936 £3,734 £6,670

£30,000 £2,099 £4,153 £6,252

£34,000 £1,142 £4,631 £5,773

£40,000 £734 £4,835 £5,569

£45,000 £393 £5,006 £5,399

£50,020 £50 £5,177 £5,227

£55,000 £0 £4,353 £4,353

£57,257 £0 £3,902 £3,902

Student living away from home, outside London 2014/15

BURSARIES AND SCHOLARSHIPS

BURSARIES AND SCHOLARSHIPSOVERVIEW

Many universities and colleges offer financial support to their studentsthrough bursaries and scholarships

Bursaries:

• Linked to personal circumstances and often, household income

• Awards can include fee waivers or cash

Scholarships:• Can be linked to academic results or outstanding ability in an area

such as sport, music or art

• Can be subject specific and are limited in numbers

ADDITIONAL SUPPORT

ADDITIONAL SUPPORTOVERVIEW

Extra money or support may be available to students if they:

• Have children or adults dependent on them

• Have a disability, long-term health condition, mental-health condition or specific learning difficulty

• Are studying an NHS or Social Work course

• NHS courses include:Nursing, midwifery, physiotherapy, chiropody, dietetics, radiography, occupational therapy, the later stages of medicine and dentistry

For more information on eligibility and applications for NHSsupport go to: www.wales.nhs.uk

STUDENT LOAN REPAYMENT

REPAYMENT - HOW MUCH DO YOU KNOW?

*Eligible English domiciled students studying at a publicly funded university or college

tQHow much do you need to earn before you start paying back your student loan?

A Over £21,000

tQAfter you graduate, your income is £25,000 a year, what would your monthly repayments be?

A £30

STUDENT LOAN REPAYMENTOVERVIEW

• Students won’t make repayments until their 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 HE course

• Repayments will be 9% of income over £21,000 and when employed deductions will be made from their pay through the HMRC tax system

• If their income falls to £21,000 or below, repayments will stop

• Early repayments can be made at any time, but any outstanding loan balance will be written off 30 years after entering repayment

STUDENT LOAN REPAYMENTINTEREST RATES

During study until

entering repayment

Interest rate is: Retail Price Index (RPI) +3%

Earnings: Below £21,000

Interest rate is: Set at RPI Only

Earnings Between:

£21,000 - £41,000RPI plus some amount

between 0% and 3%

Earnings:

Above £41,000

Interest rate is: Retail Price Index (RPI) +3%

There will be a variation in the interest rate attached to a student’s loan during study and when earning following graduation:

STUDENT LOAN REPAYMENTTHE FIGURES

Income each year before tax Income from which 9% will be deducted

Approximate Monthly Repayment

£21,000 £0 £0

£25,000 £4,000 £30

£30,000 £9,000 £67

£35,000 £14,000 £105

£40,000 £19,000 £142

£45,000 £24,000 £180

£50,000 £29,000 £217

£60,000 £39,000 £292

! Any outstanding loan balance will be cleared 30 years afterentering repayment.

STUDENT LOAN REPAYMENTPARTIAL CANCELLATION OF LOANS

• Eligibility will be automatic once you start repaying your student loan, either voluntarily or when you are required to do so.

• Partial cancellation of up to £1500

• If you have a Maintenance Loan of £300 and the amount of your first repayment is £10, you will receive a partial cancellation of £290;

• If you have a maintenance Loan of £3,000 and the amount of your first repayment is £50, you will receive a partial cancellation of £1,500;

APPLICATIONS & INFORMATION

APPLICATION INFORMATIONKEY MESSAGES FOR STUDENTS

• Apply online through www. studentfinancewales.co.uk as soon as possible to make sure their student finance is in place for the start of their studies

• Make a note of their account log-in details & keep them safe (if students have had EMA/ALG continue to use that customer reference number)

• Students do not need a confirmed place at university or college to apply for student finance

• They can change most details online before starting their course

• Agree to share information from their application, this helps apply for many bursaries and some scholarships

APPLICATION INFORMATIONCOMPLETING AN APPLICATION

Before starting the application, students should have the following to hand:

• Passport - SLC can check identity using valid UK passport details for most students

• University and course details• Bank account details and National Insurance number

If you will be supporting a students application you will need to set up your own account on www.studentfinancewales.co.uk and provide information including:

• National Insurance number(s), household income, details of other child dependents

If you can’t submit income details online, you should send a photocopy of evidence including: P60s, Pay slips or Tax returns

SUPPORTING AN APPLICATIONHOUSEHOLD INCOME

If you’ll be supporting a student’s application for means-tested studentfinance SFW will need to see details of your household (taxable earned and unearned) income and National Insurance number(s)

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

Unearned income includes:• Interest from savings (only the annual summary is required)• Benefits and pensions• Rent from property or a room

For most applications, SLC verify income from these NI numbers with no need to send any documents, unless we ask for them

SUPPORTING AN APPLICATIONTAX YEAR USED FOR ASSESSMENTS

Please give financial information for the tax year prior to when the student will start in higher education

• For students starting in Sept 2014 please submit financial information for the 2012/13 tax year

Supporting an application – drop in income:If your income has dropped by 15% or more in the current tax year SFW can reassess an application so a student may receive additional support

Submitting a Current Year Income form:• Support the student's application for finance as normal• Complete the (CYI) form with estimates of this financial year's details• Provide evidence to support estimates at the end of the current tax year

APPLICATION INFORMATIONSTUDENTFINANCEWALES.CO.UK

UNISTATSCOMPARE UNIVERSITIES AND COURSES

2014/15 RESOURCES

RESOURCES

•Guides

•Quick guides

•Short videos

•New website

Studentfinancewales.co.uk

MONEY MANAGEMENT

MONEY MANAGEMENTHINTS AND TIPS FOR STUDENTS

Before starting in higher education, students should think about the coststhey are likely to face and how to manage their money, tips include:

• Plan a budget – and (try to) stick to it!

• Ask questions and get any advice you need

• Check out student bank accounts and NUS Extra cards

• Try to avoid taking credit cards, store cards or pay day loans!!

• If you need financial support and advice once you are at university or college, staff there will be able to help

QUESTIONS?