Financing Higher Education.

1. Financing Higher Education. An overview of the outgoings and income support available Chris Fuller 23 October 2008

2. Student Finance Direct England

5. Overview of Finances £ Student finances can be sorted into two categories: • OUTGOINGS • Tuition Fees • Accommodation • Living costs • Resources • INCOME • Fees Loan • Student Loan • Maintenance Grant • Bursaries • Scholarships • Wages • Parental support

6. Tuition Fees Up to £3,225 per year* • UK and EU students • Does not have to be paid prior to study • All students can apply for a Tuition Fee Loan * Some courses are sponsored

7. Tuition Fee Loan • Non-Means Tested • Paid directly to the University • Low interest rate, set at rate of inflation • Repayable after graduation and when earning at least £15,000 • 9% repayment of your annual income

8. Overview of Finances £ • OUTGOINGS • Tuition Fees • Accommodation • Living costs • Resources • INCOME • Fees Loan • Maintenance Loan • Maintenance Grant • Bursaries • Scholarships • Wages • Parental support

9. Accommodation • The second biggest expense at university is likely to be the rent for student accommodation. • Exactly how much this costs depends upon: • Choice of university • Where it is • What facilities are chosen

10. Typical Accommodation Costs Average UK rent for university owned accommodation = £81 per week £3159 per year (bills included) Average UK rent for privately owned accommodation = £60 per week £2340 per year (bills not included) *Figures from NUS and Accommodation for Students

11. Scotland = £73 pw Edinburgh = £ 68 St. Andrews = £82 North East= £40 pw Sunderland = £44 Durham = £67 North = £58 pw Liverpool = £50 Leeds = £62 South East= £72 pw Southampton = £62 Brighton = £72 London = £102 pw Typical Accommodation Costs *Figures from NUS and Accommodation for Students

12. Maintenance Grants – non repayable REDUCED TO £50,020 (29 October 2008) X Income over £61,062: n/a No maintenance grant payable £1,292 to £50 X £50,020 Income between £34,459 and £60,032: Receive some grant £2,824 to £1,292 Income between £25,001 and £34,459: Receive some grant Income up to £25,000: £2,906 Receive full grant * Exact figures are awaiting Parliamentary approval (Jan 2009)

13. Maintenance Loan An additional loan to help with living costs • Available to home students • Paid into student’s bank account in three instalments • How much you can borrow depends upon: • How much Maintenance Grant you receive • Assessed household income (25% income assessed)

14. Maintenance Loan For students whose parental income is high and who are not therefore entitled to receive a Maintenance GRANT the maintenance LOAN to which they are entitled is 75% of the maximum loan as follows: London Parental Elsewhere home £4,982 £2,755 £3,558

15. Maintenance Grants and Loans… The Maintenance Grant is not designed to increase the amount of money available to students, but to decrease the amount they need to borrow in the form of a Maintenance Loan

16. We are not sure whether there will be slight changes to the rest of the figures although it seems from the statement by the Secretary of State that only the top threshold will be changed and all other figures will remain constant. John Guy, 30 October 2008 Plus Tuition Fee Loan of up to £3,225 Maintenance Loan & Grant X ?£50,020 X ?£50,021 lower rates of maintenance loan are paid in final year

17. Overview of Finances £ • OUTGOINGS • Tuition Fees • Accommodation • Living costs • Resources • INCOME • Fees Loan • Maintenance Loan • Maintenance Grant • Bursaries • Scholarships • Wages • Parental support

18. Bursaries All HEIs charging full tuition fees (£3,225) and all students entitled to the full Maintenance Grant (£2,906) will get a bursary of at least £310. • Non-repayable sum • In reality, a lot more is available • Different Universities have different arrangements for the payment of bursaries • For more information about bursaries across the UK please see http://bursarymap.direct.gov.uk/

19. UK Bursary Scheme UoS own non-repayable bursary scheme • Household income below £25,000 or less = £1,000 bursary • Household income £25,001 - £35,000 = £500 bursary

20. Hampshire and Isle of Wight Bursary - £1,000 • A new, full-time UK undergraduate student • Living in or studying at a sixth form or further education college with a Hampshire/Isle of Wight postcode • A UK resident (excluding the Channel Islands and the Isle of Man) • The first in your family to enter higher education (excluding brothers and/or sisters) • Living in a household with a total income of less than £35,000 • Not already receiving an NHS bursary

21. NHS Bursaries • Some healthcare courses do not carry fees and have large NHS bursaries available. • Over £7,000 available in some areas • Contact the Student Grants Unit of NHS for more details on 01253 856123

22. Scholarships Each University offers different rewards in the form of Scholarships. For example, The University of Southampton offers over £1 million to the most talented students in all subject areas.

23. Repayment in real terms Average Graduate salary = £20,000 Monthly repayment = £37.50 • 10-15 years to repay • Graduates can take up to 5 years worth of loan breaks • Interest linked to inflation • After 25 years, all debt is wiped clean

24. Summary • All students can take a full tuition fee loan • Tuition Fee Loan and Maintenance Loan are the only sums to be repaid • Loans only repaid after graduation and in employment earning at least £15,000 • Grants, bursaries and scholarships are non-repayable

25. Aimee EllisStudent Finance Outreach Officera.r.ellis@southampton.ac.ukTel: 023 8059 9670