www.gov.uk/studentfinance

STUDENT FINANCE ENGLANDHELOA Teacher and Adviser Conference

Thursday 15th May 2014

Chris Snowdon (Student Finance Adviser, East of England)

SESSION CONTENTSi• The Student Finance Information Team (SFIT)

• The Student Finance Package

• Looking Ahead to 2015/16

• News and Updates

• Applications & Information : Get it right first time

• How Repayment Works?

• Practitioner Resources

REGIONAL SUPPORTTHE STUDENT FINANCE INFORMATION TEAMi

• Provide training, updates CPD opportunities for staff and practitioners• Assist in providing student finance updates at appropriate events (parents)• Signposting to a range of free resources• Student finance mailing list (East of England specific)• Statement of Service

www.gov.uk/studentfinance

THE STUDENT FINANCE PACKAGE

• TUITION FEE LOANNon-Means Tested for whatever your being charged (up to £9000 max)

• MAINTENANCE LOANParents (max of £4418), Elsewhere (max of £5555), London (max of £7751) 65% non means tested, 35% means tested

• MAINTENANCE GRANTMeans Tested (non-repayable) grant of up to £3387

• ADDITIONAL SUPPORTStudent with children / Student with disabilities

• ...and don’t forget about bursaries and scholarships...

2014/15 AT A GLANCEWHAT IS AVAILABLE?

• TUITION FEE LOANMaintained at the same level as 2014/15 (max of £9000)

• MAINTENANCE LOANIncrease in maximum rate of Maintenance Loan in line with inflation (+3.34%)

• MAINTENANCE GRANTMaintained at the same level as 2014/15 (max of £3387)

• ADDITIONAL SUPPORT Increase in maximum rates line with inflation (+3.34%)

*All rates subject to final Parliamentary Approval

LOOKING AHEAD TO 2015/16*WHAT IS AVAILABLE?

NEWS AND UPDATES

• Application data...

• New free phone telephone number for students

• New end to end Welsh Service

• Part Time Application Cycle 2014/15 ready to launch

• Proposal for new Sharia Compliant Loan System

• New email contact for Practitioners:-- right_first_time@slc.co.uk- referral via Regional Adviser

• New Online Application Platform (and Application Demo)

APPLICATIONS & INFORMATIONSECTION 3

STUDENT LOAN APPLICATIONSSTUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - KEY MESSAGES3

• Apply online at gov.uk/studentfinance as soon as possible to make sure their student finance is in place for the start of their course

• The application cycle for 2014/15 is OPEN NOW

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

• Make a note of their account log-in details & keep them safe

• 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

STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - COMPLETING AN APPLICATION3

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 GOV.UK and provide information including:

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

child dependent’sIf you can’t submit your income details online, send a photocopy of evidence including: P60, Pay slips, Tax return, or Pensions

APPLICATION INFORMATIONCOMPLETING AN APPLICATION3

3 NEW LOOK ‘MY ACCOUNT’ MAKING IT EASIER TO NAVIGATE & UNDERSTAND

3 NEW LOOK ‘MY ACCOUNT’ MAKING IT EASIER TO NAVIGATE & UNDERSTAND

3 NEW LOOK ‘MY ACCOUNT’ MAKING IT EASIER TO NAVIGATE & UNDERSTAND

SECTION 4 STUDENT LOAN REPAYMENTS

• You won’t make repayments until your 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 higher-education course

• You’ll repay 9% of your income over £21,000 and if you’re employed deductions will be made from your pay through the HMRC tax system

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

• Any outstanding loan balance will be written off 30 years after entering repayment

STUDENT LOAN REPAYMENTSTUDENT LOAN REPAYMENTSAN OVERVIEW

www.youtube.com/SFEFILM

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Income each year before tax

Income from which 9% is deducted

Monthly Repayment

(Approx)

£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

STUDENT LOAN REPAYMENTSTHE FIGURES

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

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Interest added will vary, depending on a student’s circumstances:

During study until

entering repaymentInterest rate is:

Retail Price Index (RPI) +3%

Income:

Below £21,000Interest rate is: Set at RPI Only

Income:

£21,000 to £41,000

Interest rate is:RPI plus up to 3%

Income:

Above £41,000

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

The interest rate applied is updated once a year in September, using the rate of RPI from that March which is carried forward

STUDENT LOAN REPAYMENTSTHE INTEREST4

Example 1 Old System Student

• 3 year course, £3,000 a year fees• £4,000 a year maintenance loan

• 25 year write off period

Owes £23,000 at end of studies, including interest

Starting Salary of £24,000

Total Repayments = £35,500

Repay full balance in 24.5 years

!Assumptions: 2% salary growth, 3% average inflation. Based on a report by HEPI on the Government White Paper, available here.

Example 2 New System Student

• 3 year course, £9,000 a year fees• £4,300 a year maintenance loan

• 30 year write off period

Owes £45,000 at end of studies,including interest

Starting Salary of £24,000

Total Repayments = £22,000

Balance written off after 30 years

4 STUDENT LOAN REPAYMENTSA COMPARISON…

www.studentloanrepayment.co.uk

4 STUDENT LOAN REPAYMENTSDEDICATED WEBSITE

PRACTITIONER RESOURCESSECTION 5

5 PRACTITIONER RESOURCESDEDICATED WEBSITE

www.practitioners.slc.co.uk

PRACTITIONER RESOURCES

• Money Matter e-mag

• Suite of Factsheets

• Series of Full and Quick Guides

• PowerPoint Presentations

• Videos and Marketing Materials

• Policy Documents and SFE Updates

• Application Demo 2014/15

• Links to interactive features, including SFE‘A Minute For’ videos

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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:

www.practitioners.slc.co.uk/regional-support

PRACTITIONER RESOURCESSUPPORT FOR PRACTITIONERS

Practitioner Helpline: For detailed/complex regulatory advice and particularly complex assessment enquiries - 0845 602 0583

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