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STUDENT FINANCE UPDATE HIGHER EDUCATION ADVISORS’ CONFERENCE 9 JULY 2014

STUDENT FINANCE UPDATE HIGHER EDUCATION ADVISORS’ CONFERENCE 9 JULY 2014. KATY BARGE STUDENT FINANCE IAG TEAM. i. SESSION CONTENTS. Section 1 – SLC Updates Section 2 – Student Finance Package 2015/16 Section 3 – Common Concerns Section 4 – Applications & Information

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STUDENT FINANCE UPDATE HIGHER EDUCATION ADVISORS’ CONFERENCE 9 JULY 2014

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  1. STUDENT FINANCE UPDATE HIGHER EDUCATION ADVISORS’ CONFERENCE 9 JULY 2014 KATY BARGE STUDENT FINANCE IAG TEAM

  2. i SESSION CONTENTS • Section 1 – SLC Updates • Section 2 – Student Finance Package 2015/16 • Section 3 – Common Concerns • Section 4 – Applications & Information • Section 5 - Resources

  3. SECTION 1 SLC UPDATES

  4. 1 PROCESSING UPDATE FULL TIME HIGHER EDUCATION • Application cycle for new full time students opened 20 January • As at 30 May just over 348,540 new applications received • (396,730 returning students) . 98.7% online • Over 1.15 million applications submitted in England for 2013/14 • 34% of applications submitted after the deadline last year (31 May 2013) • 33% late applications received in the West Midlands region • 2014 deadline 30 May for new students (27 June for returners)

  5. 1 PROCESSING UPDATE FULL TIME HIGHER EDUCATION • In 2013/14, 99.7% applications submitted on time processed by start • of term – BIS target 99% • 86.7% applications processed within 20 working days – BIS target 70% • 97% applications processed within 30 working days – BIS target 95% • 91.7% student applications made online – BIS target 91% • 82.1% sponsor supporting evidence supplied online – BIS target 65% • 91.7% calls answered (6.1m) – BIS target 90% J 2014 Annual Report available from: www.slc.co.uk/media/annual-report.aspx

  6. 1 TELEPHONE UPDATE STUDENT LOANS COMPANY • The Student Loans Company has launched 030 phone numbers for all customer lines, replacing 0845 business-rate phone charges • Effective from 1 April 2014 • Customer calls will cost no more than calls to geographic (01 and 02) numbers and will also count towards inclusive free call packages • on mobile phones • The customer help line for Student Finance England is 0300 100 0607 • Practitioners’ help line has changed to 0300 100 0618

  7. 1 STUDENT FINANCE WALES MODERNISATION • The Student Loans Company is responsible for the student • finance service in Wales for new students from 2014/15 • Returning students in 2014/15 will continue to apply to their LEA • Responsible for both new and returning students from 2015/16 • Service launched 8 April. Deadline of 16 May for new students • Dedicated Student Finance Advisers in place for Wales • Resources available for teachers and advisers via www.studentfinancewales.co.uk/practitioners

  8. 1 APPLICATION UPDATE PART TIME HIGHER EDUCATION • SFE part time application now • open for 2014/15 • Online application available • Quick guide available to • download or order in hard copy • Full guide and fact sheet also • available to download via • Practitioners’ website

  9. 1 APPLICATION UPDATE FURTHER EDUCATION – 24+ ADVANCED LEARNING LOAN • 2014/15 application cycle launched • mid April • Online application available • Eligible learners can apply at • www.gov.uk/advancedlearningloans • Dedicated resources suite available • via the Practitioners’ website

  10. SECTION 2 THE STUDENT FINANCE PACKAGE

  11. 2 FUNDING PACKAGE 2015/16 OVERVIEW • Student Finance package for 2015/16 announced 13 March • Regulations expected to come ‘into force’ end November 2014 subject to final Parliamentary approval • Maximum tuition charges and tuition loans maintained at 2014/15 levels • Maximum Maintenance Grants and Disabled Students’ Allowances also • maintained • Maximum Maintenance Loans and grants for dependants (CCG, PLA, • ADG) will be increased by inflation – 3.34% Details of the changes can be found in the Policy section at: www.practitioners.slc.co.uk

  12. 2 TUITION FEES & LOANS OVERVIEW • Universities and colleges* can charge new full-time students up to • £9,000 per year (£6,750 part-time) for tuition fees • Eligible students won’t have to pay any tuition fees up front • A Tuition Fee Loan is available to cover the fee charged by a university • or college** • A Tuition Fee Loan doesn’t depend on household income • SFE pay any Tuition Fee Loan directly to your university or college • The loan is repayable, but only when your income is over £21,000 *Publicly funded institutions **Up to £6,000 available for approved courses at alternative providers

  13. 2 DESIGNATION OF COURSES ALTERNATIVE PROVIDERS • ‌‌HEFCE has taken on responsibility for processing applications on behalf of the Department for Business, Innovations and Skills • Process of deciding whether or not students attending alternative/private institutions can access loans and grants from the SLC • Providers must meet criteria of teaching quality, financial sustainability, management and governance, and course eligibility • HEFCE website lists HE courses at alternative providers that have course designation: • http://www.hefce.ac.uk/whatwedo/reg/desig/

  14. 2 MAINTENANCE LOAN 2015/16 RATES *Slightly lower rates of support apply to final year students

  15. 2 MAINTENANCE SUPPORT MAINTENANCE GRANT 2015/16 RATES • The Maintenance Grant doesn’t have to be repaid • How much grant a student can get depends on their household • income (100% means tested) • Household income thresholds maintained at 2014/2015 levels: Household Income: Up to £25,000 Full Grant of £3,387 Household Income: Up to £42,620 Partial Grant

  16. 2 COMBINED MAINTENANCE SUPPORT LIVING AWAY FROM HOME, OUTSIDE LONDON Students can get a quick estimate of their student finance entitlement using the calculator on gov.uk/studentfinance

  17. 2 ADDITIONAL SUPPORT ADDITIONAL SUPPORT EXTRA SUPPORT MAY BE AVAILABLE IF YOU: • Have children or adults dependent on you • Have a disability, long-term health condition, mental-health condition • or specific learning difficulty • Study an NHS or Social Work course • NHS courses include: • nursing, midwifery, physiotherapy, speech and language therapy, • dietetics, radiography , the later stages of medicine and dentistry For more information on eligibility and applications for NHS support go to: www.nhsbsa.nhs.uk/students

  18. 2 ADDITIONAL SUPPORT DISABLED STUDENTS’ ALLOWANCES -CHANGES • Changes announced 7 April which will affect new DSA students from 2015/16 onwards. DSA funding will no longer be provided for the following products and services: • Standard specification computers, software, and associated • peripherals – and higher spec due to course delivery • Warranties and insurance associated with standard specification • computers • Non-specialist non-medical help (NMH) support. DSA will continue to • fund the most specialist NMH (i.e. as outlined in the SLC NMH manual • bands three and four, and specialist roles) Further information available via www.practitioners.slc.co.uk in the ‘Policy Information’ section’

  19. 2 BURSARIES & SCHOLARSHIPS INSTITUTIONAL SUPPORT OVERVIEW • NSP will cease as an undergraduate programme from 2015/16 • Refocused to support postgraduate students - £50m • HE Providers expected to increase investment in widening access by • reaching £670 million in 2016/17 • From 2014/15, single budget for the Access to Learning Fund (ALF) and • the Student Opportunity allocation • SO allocation may now also be used to support hardship – as well as • widening access, improving retention & supporting disabled students • “Simplify funding streams where they seek to deliver a similar objective”

  20. 2 BURSARIES & SCHOLARSHIPS BURSARIES & SCHOLARSHIPS • Many universities and colleges offer financial support to their students • through bursaries and scholarships • Bursaries: • Linked to personal circumstances and often, household income • Awards can include discounted tuition fees, accommodation or cash • Scholarships: • Linked to academic results or ability in an area such as sport or music • Can be subject specific and are limited in numbers Check university websites and ask at open days for information on bursaries, scholarships and how and when to apply!

  21. SECTION 3 COMMON CONCERNS

  22. 3 COMMON CONCERNS COMMON CONCERNS i i ! Debt from a student loan will be unmanageable! The amount repayable will only increase with earnings as repayments are based on income, not how much a student has borrowed. Any loan remaining 30 years from the April following graduation (or withdrawal if sooner) is cancelled.

  23. 3 COMMON CONCERNS COMMON QUESTIONS Will student loans have an affect on an application for mortgages or other loans/credit in the future? If my child can’t afford to repay their loan then I’ll have to foot the bill!?! i i ! ! Student loans are the sole responsibility of the student who takes them out. Student loans are unsecured government lending and are very different to commercial loans. They don’t go on credit files or show up on credit checks.

  24. 3 STUDENT LOAN REPAYMENTS IMPACT ON MORTGAGE APPLICATIONS • The Financial Conduct Authority has confirmed in it’s Mortgage Market Review that student loan repayments have to be included as ‘committed expenditure’ in mortgage applications • While this may effect how much a graduate can borrow, it does not mean they can’t or won’t be able to successfully secure a mortgage • Quote from the Council of Mortgage Lenders: • ‘Student loan debt is treated in the same way as other types of debt, • and regular repayments will reduce the disposable income, which is used in the income multiple/affordability calculation’ Further information can be found on the Council of Mortgage Lenders website – www.cml.org.uk

  25. 3 COMMON QUESTIONS If I move overseas will I still have to pay back my student loan? i i ! Students must notify SLC if they intend to move overseas for more than 3 months. As they are outside the UK tax system, we work out monthly repayments via direct debit based upon the earnings threshold for their destination country.

  26. 3 COMMON QUESTIONS Will there be more support as I have more than one child at university? i i ! £1,130 deduction from household income for any child totally or mainly financially dependent. If household income above £42,875 parental contribution figure will be equally split. Each child’s max loan will be reduced equally so parents not asked to contribute above this figure.

  27. 3 COMMON CONCERNS As a Muslim I am prevented from accessing HE because of the interest bearing loans. i i ! Islamic Sharia law prohibits “Riba” – the paying and receiving of interest above inflation. BIS recently publicised a consultation paper to see whether their possible solution would be acceptable to UK Muslims.

  28. https://www.gov.uk/government/consultations/sharia-compliant-student-financehttps://www.gov.uk/government/consultations/sharia-compliant-student-finance

  29. SECTION 4 APPLICATIONS & INFORMATION

  30. 4 STUDENT FINANCE APPLICATIONS KEY MESSAGES – APPLY EARLY • Each year thousands of students apply late for their finance and • have no way to pay for their course or halls, some even have to drop out.. • ...don’t let that be you! • It will take at least six weeks to process your application so apply early • to make sure your student finance is ready for the start of your course • Apply online at gov.uk/studentfinance* • You don’t need a confirmed place at university or college to apply • for student finance • Apply with your first choice, you can change details later if you need to *When setting up your student finance account, be sure to keep a note of your password and other log-in information!

  31. 4 GOV.UK FOR MORE INFORMATION & TO APPLY www.gov.uk/studentfinance

  32. 4 SFE ONLINE FOR FURTHER INFORMATION & RESOURCES www.youtube.com/SFEFILM www.twitter.com/sf_england www.facebook.com/SFEngland www.thestudentroom.co.uk/studentfinance

  33. SECTION 5 RESOURCES

  34. www.practitioners.slc.co.uk 5 PRACTITIONER RESOURCES DEDICATED WEBSITE

  35. 5 PRACTITIONER RESOURCES DEDICATED WEBSITE • Access and download our wide range of • IAG resources, including: • Factsheets and Guides • PowerPoint Presentations • Videos and Lesson Plans • Policy Documents and Updates

  36. www.practitioners.slc.co.uk www.practitioners.slc.co.uk 5 PRACTITIONER RESOURCES 2014/15 APPLICATION DEMO

  37. 5 THE STUDENT FINANCE TOUR STUDENT AND PARENT TALKS • The BIS funded Student Finance Tour has been re-commissioned to • support 2015/16 entry • Presentations will focus on the cost of studying and the financial support available for students starting a course from September 2015 • Focus on Year 12 and Year 13 • Initial Parent Tour running 30 June – 18July • Student and Parent Tour will then run 8 September - 12 December • 0151 350 1532 or email them on sft@events.com

  38. 5 PRACTITIONER RESOURCES SUPPORT FOR PRACTITIONERS • 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: • http://www.practitioners.slc.co.uk/regional-support.aspx Practitioner Helpline: For detailed/complex regulatory advice and particularly complex assessment enquiries - 0300 100 0618

  39. 5 PRACTTIONER RESOURCES REGIONAL SUPPORT PAGES

  40. ? QUESTIONS & COMMENTS

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