Tuition Fees and Student Finance 2012-13A summary of the presentations made byStudent Finance England reps, &Peter Boursnell, Brent Aimhigher Coordinator

UCAS Annual Conference February 2012

Overview

Update on Tuition Fees

Student loan from 2012

What does it mean for you?

Government claims the new arrangements will ensure …

all graduates will pay less per month than they do under the current system.

all outstanding repayments will be written off after 30 years

around a quarter of graduates, those with the lowest lifetime earnings, will pay less than under the current system.

The Browne Report suggested that only the top 40% of earners on average will pay back the full amount of their loan over the 30 year repayment period. This percentage was based on its recommendations and may be different under the government’s proposals.

Important things to remember No up front payments made

No payments at all until graduate earns £21,000

9% earnings above the threshold are collected for repayment

Loan written off after 30 years

2011/12 2012/13*

Tuition Fee Loan (“Graduate

Contribution”)Max £3375

Two tiers: max £6,000 or £9,000

£9000 only in exceptional circumstances

Fee Loans for part-time courses if intensity 25% +

Maintenance Loan

Variable amounts in 3 bands

Means tested

Variable amounts in 3 bands – details to be confirmed

Loans increased for household incomes from £42K - £60K

Not available to part-time students

Maintenance Grant

Max £2906£25K / £50K thresholds

Max £3,250 - £25K / £42K thresholdsNot available to part-time students

HEI Bursary £338+ for those on full grant paying full feesNew £150m National Scholarships Programme – obligatory

for HEI to participate if fees exceed £6,000

Application Separate application process post UCAS No details yet

Repayment

9% of earnings over £15K threshold (uprated annually in line with inflation from April 2012)

Interest inflation linked (currently 1.5%)

Written off after 25 years

9% of earnings over £21K threshold (uprated annually in line with earnings from April 2016)

Interest £21k - £41K - Tapered inflation RPI + 3% Written off after 30 years

Early repayment arrangements being considered

*Please note that these are ONLY proposals: detailed decisions have yet to be taken, and the package of support available to 12/13 entrants will not be announced until later in 2011

Summary of Proposals

Repayments are collected through tax system, starting April after graduation

Currently; only repay if earning above £15,000 per annum or £1,250 per month gross

Proposed; only repay if earning above £21,000 per annum or £1,750 per month gross

9% earnings above threshold are collected for repayment

Loans taken A/Y 06/07 or after written off after 25 years

Loans taken A/Y 12/13 or after written off after 30 years

Loan Repayment

Case Studies

NB: The following figures are calculations made by the presenter, they are not official figures

Graduates on salary of £21,000Student starting University in 2011 Student starting University in 2012

Under the CURRENT Fees arrangements Under the New Fees arrangements Tuition Fees: £3,375 per year Tuition Fees: £9,000 per yearTotal loan for 3 year course: £10,125 Total loan for 3 year course: £27,000 Student finishes degree in June 2014(takes a Gap year, travelling the world).

Student finishes degree in June 2015

Student starts working in Sept 2015 Student starts working in Sept 2015

Both students on a starting salary of £21,000Student pays 9% of earnings above £15k= £10 per week (approx)

Student pays 9% of earnings above £21k= £0 per week (Nothing)

Take home pay after tax and NI would be £322 per week (estimate)£312 per week after loan payment (estimate)

Take home pay after tax and NI would be £322 per week (estimate)

Note: the £10,125 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.

Note: the £27,000 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.

Graduates on salary of £24,000Student starting University in 2011 Student starting University in 2012

Under the CURRENT Fees arrangements Under the New Fees arrangements Tuition Fees: £3,375 per year Tuition Fees: £9,000 per yearTotal loan for 3 year course: £10,125 Total loan for 3 year course: £27,000 Student finishes degree in June 2014(takes a Gap year, travelling the world).

Student finishes degree in June 2015

Student starts working in Sept 2015 Student starts working in Sept 2015

Both students on a starting salary of £24,000Student pays 9% of earnings above £15k= £16 per week (approx)

Student pays 9% of earnings above £21k=£5 per week (approx)

Take home pay after tax and NI would be £365 per week (estimate)£349 per week after loan payment (estimate)

Take home pay after tax and NI would be £365 per week (estimate)£360 per week after loan payment (estimate)

Note: the £10,125 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.

Note: the £27,000 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.

Graduates on salary of £30,000Student starting University in 2011 Student starting University in 2012

Under the CURRENT Fees arrangements Under the New Fees arrangements Tuition Fees: £3,375 per year Tuition Fees: £9,000 per yearTotal loan for 3 year course: £10,125 Total loan for 3 year course: £27,000 Student finishes degree in June 2014(takes a Gap year, travelling the world).

Student finishes degree in June 2015

Student starts working in Sept 2015 Student starts working in Sept 2015

Both students on a starting salary of £30,000Student pays 9% of earnings above £15k= £26 per week (approx)

Student pays 9% of earnings above £21k= £16 per week (approx)

Take home pay after tax and NI would be £448 per week (estimate)£422 per week after loan payment (estimate)

Take home pay after tax and NI would be £448 per week (estimate)£432 per week after loan payment (estimate)

Note: the £10,125 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.

Note: the £27,000 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.

Graduates on salary of £40,000Student starting University in 2011 Student starting University in 2012

Under the CURRENT Fees arrangements Under the New Fees arrangements Tuition Fees: £3,375 per year Tuition Fees: £9,000 per yearTotal loan for 3 year course: £10,125 Total loan for 3 year course: £27,000 Student finishes degree in June 2014(takes a Gap year, travelling the world).

Student finishes degree in June 2015

Student starts working in Sept 2015 Student starts working in Sept 2015

Both students on a starting salary of £40,000Student pays 9% of earnings above £15k= £43 per week (approx)

Student pays 9% of earnings above £21k=£33 per week (approx)

Take home pay after tax and NI would be £587 per week (estimate)£544 per week after loan payment (estimate)

Take home pay after tax and NI would be £587 per week (estimate)£554 per week after loan payment (estimate)

Note: the £10,125 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.

Note: the £27,000 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.

Conclusions Think seriously about applying to

university: - If you do not see yourself in graduate

employment after university, there may not be much point in going at all!

- All the research shows that graduates are, on average, happier, healthier and wealthier than the rest of the population!

- Make sensible choices to ensure that you get value for money. UNITSTATS.

- When you get there, demand value for money!

Conclusions cont. Although you will probably be paying more overall

for your university studies You do not have to make any up-front payments Your rate of payment will be less than students

currently pay If you go into graduate employment, monthly

repayments will be well within your means. Rather than a loan (and therefore a debt) it makes

more sense to see tuition fees as a graduate tax. In 1970s when there was no tuition fees or student

loans, basic income tax was between 30 and 35%. People managed.

It is as if your income tax will be 29% rather than 20%. You’ll manage.

Annual Conference for Teachers and Advisers

Mary Curnock Cook

Chief Executive

9-10 February 2011

The World of Higher Education 2011-12

▪ Massive expansion of Higher Education in last 10-15

years

▪ Government cuts in HE funding – esp. teaching

budget

▪ Financial penalties on HE institutions for taking

students above quota

▪ Rise in tuition fees won’t offset govt funding cuts

Why Universities like state school students …

“Hoare and a colleague studied the

results of 4,305 students admitted to

Bristol in 2002-4. The starkest result

was the 54% gap in firsts between state

and private school students with three

As at A-level.” From the Sunday Times

General guidance

▪ Minimum entry requirements

▫ Are minimum entry requirements

▪ Achieving minimum entry requirements gets you on the

pile that gets considered

▫ Then additional sifts are applied

▫ Everyone competing for the place your candidates

want will also meet the minimum requirements

▪ Ask mentor/D Studies about the likely sifting process at

target institutions

▪ Ring them yourself

Some application strategies.........

▪ Broaden your choice of institution

Top15 institutions - independent school accepts

Other Russell Group universities

▪ Cardiff

▪ Edinburgh

▪ Glasgow

▪ Liverpool

▪ LSE

▪ Queen’s Belfast

▪ Sheffield

Challoner Students: Offers 2011

Institution Offer Course NameLVRPL AAB English

GLASG ABB Mechanical Engineering

LVRPL ABB PhilosophyCARDF BBB Environmental Geoscience

EDINB N Computer Science

LSEA*AA (inc Eng Lit & exc FM) Law

LVRPL ABB Physiology

LVRPL ABB Biological Sciences

LVRPL BBB Combined Honours

SHEFD AAB Molecular Biology

Challoner applications to Russell Group universities 2011

▪ No of students applying 40 (out of 82)

▪ No of applications 93 (out of 407)

▪ Offers so far 59 (out of 93) – 66%

▪ No of rejections 15 (out of 93) - 16%

▪ Offer range A*AA – BBB (most

AAA/AAB)

▪ Highest offers: Birm, Bristol, Cam, Leeds, LSE, Soton

1994 Group

University of Bath

Birkbeck, University of London

Durham University

University of East Anglia

University of Essex

University of Exeter

Goldsmiths, University of London

Institute of Education, University of London

Royal Holloway, University of London

Lancaster University

University of Leicester

Loughborough University

Queen Mary, University of London

University of Reading

University of St Andrews

School of Oriental and African Studies

University of Surrey

University of Sussex

University of York

Challoner applications to 1994 Group universities 2011

▪ No of students applying 44 (out of 82)

▪ No of applications 81 (out of 407)

▪ Offers so far 62 (out of 81) – 66%

▪ No of rejections 4 (out of 81) - 16%

▪ Offer range A*AA – BBB (most

AAB/ABB)

University Alliance

Aberystwyth University Bournemouth University University of Bradford[3]

De Montfort University University of Glamorgan Glasgow Caledonian Unive

rsity University of Hertfordshire University of Huddersfield University of Lincoln Liverpool John Moores

University Manchester Metropolitan U

niversity Northumbria University

Nottingham Trent University The Open University Oxford Brookes University[1]

University of Plymouth University of Portsmouth University of Salford Sheffield Hallam University Teesside University University of Wales Institute

, Cardiff University of Wales, Newpo

rt University of the West of En

gland

Challoner applications to University Alliance universities 2011

▪ No of students applying 44 (out of 82)

▪ No of applications 66 (out of 407)

▪ Offers so far 55 (out of 66) – 66%

▪ No of rejections 5 (out of 66) - 16%

▪ Offer range ABB (320) – 220 (CCD)

▪ Average offer 280 (BBC)

Million + Group

University of Abertay Dundee Anglia Ruskin University Bath Spa University University of Bedfordshire Birmingham City University University of Bolton Buckinghamshire New Universi

ty University of Central Lancashir

e Coventry University University of Derby University of East London Edinburgh Napier University University of Greenwich

Kingston University Leeds Metropolitan University London Metropolitan University London South Bank University Middlesex University University of Northampton Roehampton University Southampton Solent University Staffordshire University University of Sunderland Teesside University Thames Valley University University of The West of Scotl

and University of Wolverhampton

Challoner applications to Million + universities 2011

▪ No of students applying 29 (out of 82)

▪ No of applications 52 (out of 407)

▪ Offers so far 30 (out of 52) – 58%

▪ No of rejections 5 (out of 66) - 13%

▪ Offer range 340 – 120

▪ Average offer 240 (CCC)

Challoner applications 2011 overview so far

HE group Students No apps%

apps % Rej Offers % offers

Russell 40 89 22 16 59 66

1994 44 81 20 5 62 77

Uni Alliance 43 66 16 6 55 83

Non-Aligned 58 115 28 7 69 60

Million + 29 52 13 13 30 58

Total no of students applying 82Total no of applications made 407

Some examples of good choices

Molecular Biology

EANGL BBB

LVRPL ABB

BATH ABB

YORK ABB

SHEFD AAB

Geography

STAFF 260

LEICR ABB

READG 320

KEELE 300

PORT 280

International RelsOXFD BBCBIRM ABBREADG 300EANGL ABBBIRM BBB

HistoryKENT 340ROE 300MSOTON KPORT 300KING 220

Some examples of poor choice range

Philosophy

OXFD BBC

KEELE 300

LVRPL ABB

LEEDS REJ

BIRM REJ

Primary Teaching

KING REJ

SMARY REF

UOC INV

ROE REJ

BRITN REJ

Strategies..........

▪ Make sure you have a range of institutions

among your choices:

▪ 1 aspirational

▪ 2-3 realistic

▪ 1 ‘if all else fails’

▪ Insurance choice

▫ It’s a backstop not a second option

▫ Last year 42% had CIs harder or equal to

CFs

▪ Consider post qualifications admission