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Student Finance

Student Finance. Will Atkinson School and College Liaison Manager. I will cover…. Tuition fees and tuition fee loans Living costs and maintenance loans Tips on balancing income and expenditure Loan repayments The lifelong impact of loans: ‘saddled with debt’?. Is university expensive?.

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Student Finance

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  1. Student Finance Will Atkinson School and College Liaison Manager

  2. I will cover… • Tuition fees and tuition fee loans • Living costs and maintenance loans • Tips on balancing income and expenditure • Loan repayments • The lifelong impact of loans: ‘saddled with debt’?

  3. Is university expensive? Can university be affordable?

  4. Financial Benefits • Figures published in 2017 suggest: The average graduate earned £10k more per year than the average non-graduate. Office for National Statistics

  5. Tuition fees • Typically ‘cost’ £9,250 per year • 100% covered by a government loan – paid straight from the government to your university • [If you are a UK student and are going to university for the first time]

  6. Living costs (average per week in Leeds)

  7. Living costs (average per week in Leeds)

  8. Living costs (average per week in Leeds)

  9. Living costs (average per week in Leeds)

  10. Living costs (average per week in Leeds)

  11. Living costs (average per week in Leeds)

  12. Living costs (average per week in Leeds)

  13. Living costs (average per week in Leeds)

  14. Living costs (average per week in Leeds)

  15. How different would these living costs be if you were to move away from home and get a job?

  16. Living costs (average per week in Leeds)

  17. Living cost (‘maintenance’) loan • Based on household income and where you live • Household income: • Your parents, if you’re under 25 and live with them or depend on them financially • One of your parents and their partner, if you’re under 25 and live with them or depend on them financially • Tested on ‘previous’ tax year (parents of September 2021 entrants will be tested on 2019/20 earnings) • If household income drops by 15% or more from the previous tax year, you can ask for income details for the current tax year to be assessed instead • Paid directly into your bank account in three instalments at the start of each term

  18. Living cost (‘maintenance’) loan

  19. How to apply • Create an account at www.gov.uk/studentfinance • If you’re registered on UCAS, they will inform you when to apply (usually February) • Fill in and submit your application – apply early • Student Finance England may contact your parents to request evidence on income and marital status

  20. Student jobs • Leeds Beckett student ambassadors: £9.75 per hour • Many universities have their own job agencies • Consider having a job related to your degree or your career aspirations • Don’t let it take precedence over your studies • Holiday jobs can add significant income

  21. Bursaries and Scholarships • Offered by government and by individual universities • It’s unlikely universities will come looking for you: do your own research The government offers: Childcare grant Parents’ Learning Allowance Adult Dependants’ Grant Disabled Students’ Allowance Leeds Beckett offers: Hardship Funds Beckett Achievement Award Sport Scholarships Primary Carers Bursary Care Leavers’ and Estranged Students’ Bursary Sponsored Scholarships of £1000

  22. Student debt and interest • When you finish your studies, the tuition fee loan and maintenance loan will be rolled into one • You pay interest on any student loans from the first payment received, until it is paid off in full or cancelled • Interest paid is based on RPI (Retail Price Index)

  23. Interest on Student Loan i Interest Rate: Retail Price Index +3% Income: Over £46,305 Income: Under £25,725 Income: £25,725 to £46,305 Interest Rate: RPI Only Interest Rate: RPI + up to 3% Interest Rate: RPI +3% During study until entering repayment The interest rate is updated once a year using the RPI figure from March which is carried forward and applied in September

  24. Loan repayments • You only start to pay back your loan once you are earning over £25,725 • The amount repaid is based on your income not on how much you borrowed YOUR INCOME YOU REPAY £29,725 9% £4,000 £25,725 Payment threshold Over the payment threshold £30 A MONTH

  25. Loan repayments

  26. Repayments vs. interest example Let’s say you graduate from university with exactly £50,000 of student debt and you’re earning £60,000 per year.

  27. Loan repayments • After 30 years, any outstanding loan balance is wiped • Does it make financial sense to pay off the debt in one go, or to pay fees up front?

  28. How will it impact my financial future? • Student Loan does not go on your credit file • Mortgage – ‘huge debt’ is irrelevant but the Council of Mortgage Lenders (CML) has said: ‘A student loan is very unlikely to impact materially on an individual's ability to get a mortgage, but the amount of mortgage available may depend on net income (i.e. your “take home” pay after tax and expenses).’

  29. Recap: • Fees = £9,250 but are covered • Living costs loans are means-tested and cover some living costs • Repay 9p for every £1 earned over £25,725

  30. Google this: “which university parents finance” “money saving expert student loans myth busting” “student loan calculator”

  31. Any questions? Open days: Saturday 28 September 2019 Saturday 26 October 2019 Saturday 23 November 2019 Will Atkinson w.atkinson@leedsbeckett.ac.uk 0113 812 1746

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