STUDENT FINANCE 2013/14

1. STUDENT FINANCE 2013/14

2. SESSION CONTENT • Student Finance Package • Repayments • Applications & Information • Questions & Comments

3. GENERAL ELIGIBILITY

4. GENERAL RESIDENCY REQUIREMENTS • Settled status – can live in the UK without any Home Office • restriction. • Ordinarily resident in England on the first day of the first academic year of their course. • Been living in the UK for the three years immediately prior to this • date. • Tuition fee support only, without meeting residency requirementsfor European Union students. • Exceptions exist for certain groups of students.

5. GENERAL RESIDENCY – SOME EXCEPTIONS ! • If the student, their spouse, civil partner, parent/stepparent are • recognised by the government as a refugee and lived in England • since this status was awarded. • If the student, their spouse, civil partner, parent/stepparent, have • been granted Humanitarian Protection to stay in the UK by the • Home Office, resulting from a failed asylum application and meet the standard ‘ordinary’ and 3 year residence requirements. If there is any doubt surrounding their residency status or eligibility for funding students should call the SFE help line - 0845 300 5090. • EEA /Swiss migrant workers and the children of Swiss and Turkish workers may also qualify for tuition fee loans and additional support if they meet the set employment or residency requirements.

6. RESIDENCY – 13/14 POLICY CHANGES • From AY 13/14 applications received from Armed Forces Personnel or their family members will be processed by the funding body in the UK territory where they resided prior to enlisting. • Unless subsequent to this they have established permanent residence in another administration. (Practice already in place in Wales & Scotland) • Additional requirement for the residency category ‘Children of Swiss Nationals.’ • The parent(s) of the ‘Child of a Swiss national’ must be exercising their free movement rights in the UK on the first day of the first academic year of the course for the student to be eligible to apply for the fullpackage of support .

7. COURSE & UNIVERSITY/COLLEGE ELIGIBILITY Course Eligibility • Courses must be of a certain type and be leading to a recognised • higher education qualification Including: • First degree (BSc, BA, BEd) • Foundation degree (FdA, FdSc, FdEng) • Higher National Diploma or Higher National Certificate (HND/C) • Diploma of Higher Education (DipHE) • Postgraduate Certificate of Education (PGCE) • University or College Eligibility • The HEI must be publicly funded (by UK Government) or privately • funded but running individual courses receiving public funding as designated by the government (BIS).

8. PREVIOUS STUDY RULES ! • General rule – Tuition fee loan available for full length of the student’s first undergraduate course, plus one additional year if needed. • If a student has previously studied in the UK, they may still be eligible for maintenance loan support only if they do not have an equivalent or higher level qualification or are studying an ‘exception course’ leading to a professional qualification.* • Individual circumstances of the student (including any extenuating circumstances) can affect eligibility. *Medical Doctor, Dentist, Veterinary Surgeon, Architect, Social Worker, Course attracting means tested Healthcare Bursary (NHS) 15/16 14/15 + ADD 13/14 = 4 years support Example based on standard 3 year F/T Course

9. STUDENT FINANCE 2013/14

10. STUDENT FINANCE PACKAGE 13/14 Tuition Fee Loan The Student Finance Package Maintenance (Living Cost) Support Scholarships & Bursaries Additional Support

11. TUITION FEES & LOANS

12. TUITION FEE LOAN – FULL TIME • Universities/Colleges of HE can charge a fee level of up to £9,000 per year but need to demonstrate increased efforts in widening participation and justification for any fee levels over £6,000.* • The levels set will be decided by the university including if it charges at different levels for different courses. • The average fee level for 2012 was around £8,657 up from the initial £7,500 expected government average level. • (Independent & Times Higher Education) *Presented in OFFA approved Access Agreement

13. TUITION FEES – FULL TIME • Students on Sandwich years/study years abroad will be subject to lower fee limits. • Current levels, up to a basic amount of £3,000 or up to a • £4,500 higher amount for students at institutions with an accepted access agreement. • Students at private institutions not receiving funding from HEFCE but offering courses designated by BIS will be entitled to borrow up to £6,000 to cover their tuition costs. • If the private institution is charging more, the student will need to self-fund the remainder.

14. PAYING THE TUITION FEE • Eligible students will not have to pay up front for their tuition. • The non means tested tuition fee loan (not dependant on household income) is available to cover the fee levels set by the HEI. • Up to £9,000 max for full-time courses (£6,000 at private institutions) • The Student Loans Company will lend the requested amount and pay • the university/college directly in instalments across the academic year. • Not compulsory, Students can also*: • Pay full fees upfront to the university/college, or • Pay part of the fees and take tuition fee loan for the rest * To be agreed with the institution

15. PAYING THE TUITION FEE ! Tuition Fees will be paid to a HEI at three points in the academic year. Interest on the loan will be charged from the day payment is made to the university/college, not from the liability date. *Two weeks after Term 1 start date for part-time courses

16. PART TIME STUDENTS • From September 2012 new part-time students can apply for a non means tested tuition fee loan which replaces the means tested fee and course grant. (Continuing students can still apply for these grants) • The maximum universities or colleges can charge for part-time courses is £6,750 a year. • Students starting designated P/T courses provided wholly by a private institution can apply for up to £4,500 in tuition fee loan. • The amount charged will depend on the intensity of their course. (Minimum 25% Maximum 75%) Students must complete their part-time course in no more than 16 years.

17. PART-TIME STUDENTS ! • Part-time students will not be entitled to a loan or grant towards living costs but can access Disabled Students Allowance. (DSA) • Part-time students from a low-income household may get support through the National Scholarship Programme and should look into other bursaries/scholarships offered by universities/colleges. Given the complexity of benefits, students should always contact their local Jobcentre Plus for on-going eligibility assessment. • Part-Time study & benefits • Part-time students can usually still claim benefits that depend on • household income (means-tested benefits) such as; • Income-based Jobseekers Allowance, Housing Benefit, and Council • Tax Benefit if unemployed.

18. MAINTENANCE SUPPORT

19. MAINTENANCE LOAN • The majority of the repayable maintenance loan will be available to all eligible students. 65% of the total loan is Non Means Tested. • (Not based on household income) • The amount of maintenance loan available will be linked to where • a student lives and studies while in higher education.

20. MAINTENANCE LOAN – 13/14 RATES ! Additional means tested loan is available for each extra week of study for students attending their course beyond 30 weeks.

21. MAINTENANCE GRANT • The maximum non repayablemaintenance grant level in 2013 is £3,354. • Unlike 100% of the tuition fee loan and up to 65% of the maintenance loan, the grant a student receives is solely dependant on household income levels. (100% Means Tested) • Household Income Thresholds: • Students from households with income of up to £25,000 will be entitled to the maximum grant of £3,354. • Students from households with incomes of up to £42,611 will be entitled to a partial grant.

22. COMBINED MAINTENANCE SUPPORT Student living away from home, outside London 2013/14

23. SCHOLARSHIPS & BURSARIES

24. SCHOLARSHIPS & BURSARIES ! • Bursaries: • May link to National Scholarship Programme. • Linked to personal circumstance and often, income level. • Vary by institution. • Scholarships: • Linked to academic results or ability in sport, music etc.. • Subject specific or generic. • Limited in numbers. Students should check university websites and ask at open days for information on bursaries and scholarships – what is available and how/when to apply.

25. ADDITIONAL SUPPORT

26. DISABLED STUDENTS’ ALLOWANCES • Help towards the additional costs that a student may face as a result of their disability, mental-health condition or specific learning difficulty. • In addition to the standard student finance package, • Does not have to be repaid, • Is not affected by the household income, • Looks at the specific needs of the individual in relation to their circumstances and studies. Students need to be aware the DSA application process can take up to 14 weeks! !

27. DISABLED STUDENTS’ ALLOWANCES For both full-time and part-time postgraduate students there is a single allowance of up to £10,260 a year. DSA Allowance rates 2013/14 !

28. DEPENDANTS GRANTS • Childcare Grant • Based on 85% of actual registered/approved childcare costs up to • maximum of: £148.75 per week for one child £255 per week for two or more children • Parents’ Learning Allowance • Help with course-related costs for students with dependent children. • Amount received will be between £50 and £1,508. • Adult Dependants’ Grant • Normally for the student’s partner. Can be for another adult who is • financially dependent on the student where the adult’s net income is not • more than £3,796 p.a.Maximum grant available: £2,642. Dependants grants are income related. Universities may offer additional support to students with childcare/caring responsibilities. !

29. 24+ ADVANCED LEARNING LOANS

30. 24+ ADVANCED LEARNING LOANS • Learners aged over 24 in further education (FE) and training will be able to access finance on the same basis as in higher education (HE). • Learners can apply for a loan to meet the upfront contribution costs of their course, which will be paid directly to their college or training organisation on their behalf. • Loans available for Level 3 courses and above, this will include; • A-Levels, Access to HE, Level 3+ Apprenticeships and other academic qualifications eligible for public funding (provided they are funded at least to the level of a QCF Certificate)

31. 24+ ADVANCED LEARNING LOANS • SLC will be responsible for the loan application, assessment, • payment (direct to the college/training organisation) and work • with HMRC on repayment. • The repayment of FE loans will operate on the same, income • contingent basis as loans in HE. (based on 9% of income earned • above £21,000) • Amount of loan available will reflect funding rate for course. • Maximum amount of loan will be equal to the fully funded rate for a • level 3 or Level 4 course. (Up to £4,000 TBC) • Learners who have taken out a loan for FE and training will still be able • to take out a loan for HE.(If no previous HE study exists)

32. 24+ ADVANCED LEARNING LOANS ! • Loans available to those aged 24 and over at beginning of course and meeting standard residency requirements. • Maximum period allowable for loan support: • 2 years for a Level 3 or 4 Certificate, 3 years for a Level 3 or 4 Diploma • 2 years for Advanced (Lev 3 ) Apprenticeship • Higher Level Apprenticeships TBC ‘Access courses are designed to help those with low qualifications but high ambitions progress into Higher Education, so it is right that we should support those learners.’ • Individuals taking Access to HE courses: • On completion of their Higher Education course, the SLC will write • off the amount outstanding on the loan for the Access course.

33. 24+ ADVANCED LEARNING LOANS – KEY DATES Regulations laid before Parliament (to come into force on 1 September 2012) on implementation of 24+ Advanced Learning Loans. July 2012 Communications to learners begin, with materials being made available to support discussions and communications with potential learners. Final confirmation of “Loans facility” to colleges and training organisations for 2013/14 academic year. September 2012 December 2012 April 2013 Learners can begin to apply for a 24+ Advanced Learning Loan for courses starting in the 2013/14 academic year. First cohort of 24+ Advanced Learning Loan students commence study. August 2013

34. 24+ ADVANCED LEARNING LOANS For further information on the 24+ Advanced Learning Loan policy see: www.skillsfundingagency.bis.gov.uk www.bis.gov.uk/policies/further-education-skills/24-plus-advanced-learning-loans Providers of FE can find more details at: www.lpservices.slc.co.uk If colleges or training organisations have any questions about the 24+ Advanced Learning Loan implementation, please email the Skills Funding Agency: advancedlearningloans@skillsfundingagency.bis.gov.uk

35. STUDENT LOAN REPAYMENT

36. STUDENT LOAN REPAYMENTS • Graduates will not make repayment contributions until they are • earning at least £21,000(£1,750 pm) gross. • (On entering repayment, his threshold will rise annually in line with inflation/earnings) • Full time students will begin to repay in the April after graduating from/leaving their HE course. (After 2016) • Part time students can begin to repay in the April 4 years after • they have started their course. (If earning over £21,000) • Repayments will be a basic 9% of income over £21,000 and will • be deducted automatically from pay through the HMRC tax system • for most students. • If income falls to £21,000 or below repayments will be suspended.

37. STUDENT LOAN REPAYMENT – THE FIGURES Any outstanding loan balance will be cleared 30 years after entering repayment. !

38. STUDENT LOAN REPAYMENT – INTEREST RATES There will be a variation in the interest rate attached to a students loan during study and when earning following graduation: During study until entering repayment • Interest rate is: • Retail Price Index (RPI) +3% Earnings: Below £21,000 • Interest rate is: • Set at RPI Only No penalties will be placed on students making early repayments. ! Earnings Between: £21,000 - £41,000 • RPI plus some amount • between 0% and 3% Earnings: Above £41,000 • Interest rate is: • Retail Price Index (RPI) +3%

39. STUDENT LOAN REPAYMENT – COMPARISON The first earnings linked rise in repayment thresholds for existing ICR students occurred in April 2012. Up from £15,000 to £15,795. !

40. STUDENT LOAN REPAYMENT – COMPARISON ! Assumptions: 2% salary growth, 3% average inflation. Based on a report by HEPI on the Government White Paper.

41. STUDENT LOAN REPAYMENT – DEDICATED WEBSITE www.studentloanrepayment.co.uk

42. STUDENT FINANCE ENGLAND – KEY CONTACTS www.practitioners.slc.co.uk

43. ? QUESTIONS & COMMENTS