Student Funding 2012 & Beyond

1. Student Funding 2012 & Beyond Sarah McLeod Student Services

2. Agenda • Background • Tuition fees • Money for living costs • Grants, loans, bursaries, fee waivers etc... • NHS funding • Student loan repayments • How this works • How much you could be expected to pay

3. Background • Lord Browne asked to look at finding a sustainable way to finance Higher Education • Set up by the Labour government • Reported to the Coalition • Recommendations made and further consideration of proposals in light of Government cuts since • Changes to tuition fees but also to the way students are funded

4. Tuition fees • Government announced that universities will be allowed to charge higher tuition fees from 2012 • Universities are charging between £6,000 - £9,000 each year for their courses • Tuition fee rates are available on university websites • All students can take a tuition fee loan each year so everyone can afford to study

5. Money for living costs • Maintenance grant up to £3,354 (means tested) - you don’t pay this back - full grant up to £25,000 – partial grant up to £42,600 • Maintenance loan - partially means tested - £3,575+ (living away from parental home rate) • £2,843+ (living in parental home rate) • Many students will be better off while studying under these proposals than under the current system

6. Living away from home outside London Student Funding 2013 £7,000 All students should have access to around £5,500 £6,000 £5,000 £4,000 £3,000 £2,000 £1,000 Household Income 10k 30k 40k 20k 50k 60k 70k

7. Living away from home outside London Student Funding 2013 £7,000 Maintenance Grant (£3,354) £6,000 £5,000 £4,000 Maintenance Loan (£3,823) £3,000 £25K £2,000 £1,000 10k 30k 40k 20k 50k 60k 70k

8. Living away from home outside London Student Funding 2013 £7,000 Maintenance Grant £6,000 £5,000 £4,000 Maintenance Loan £3,000 C42.6K £2,000 £1,000 10k 30k 40k 20k 50k 60k 70k

9. Student Funding 2013 Parental Contribution Maintenance Grant £7,000 £6,000 £5,000 £4,000 Maintenance Loan £3,000 £2,000 £1,000 10k 30k 40k 20k 50k 60k 70k

10. Money for living costs • National Scholarship Programme • Targeted package of funding worth a minimum of £3,000 • Every university will have a different scheme and details are available on university websites • Bursaries and Scholarships • Fee waivers • Discounted accommodation • Free foundation year

11. Additional Government Funding • Disabled Students Allowance (DSA’s) • Specialist equipment allowance • Non-medical helpers allowance • General disabled students’ allowance • Extra travel costs • Contact Disability Services • 01642 342277 or disability@tees.ac.uk

12. Social Work www.nhsbsa.nhs.uk • Course must be designated as ‘eligible’ by the GSCC • You apply to Student Finance England for them to asses your eligibility for tuition fee and maintenance loans and grants • Application pack will be available at the above website • Additional £4,575 non-repayable grant

13. How to applyApply to Student Finance England at www.directgov.uk/studentfinance

14. NHS funding 2012

15. NHS funding • NHS funded students • doctor or dentist (eligible for an NHS bursary during the latter stages of their pre-registration training) • chiropodist (including podiatrist), dietician, occupational therapist, orthoptist, physiotherapist, prosthetist, and orthotist, radiographer, audiologist or a speech and language therapist • dental hygienist or dental therapist • nurse, midwife or operating department practitioner (degree course)

16. NHS funding 2012 Non-repayable funding • Not means tested • Payment of fees • NHS grant of £1,000 • Means tested • NHS bursary up to £4,395 for 45+ weeks living away from parents • Up to £3,351 living with parents www.nhsbsa.nhs.uk Repayable funding • Not means tested • Apply to Student Finance England www.direct.gov.uk/studentfinance • £2,324 (living away from home) • £1,744 (living at home) • You pay it back like everyone else

17. More info • The NHS Business Services Authority • 0845 358 6655 • E-mail enquiries@nhspa.gov.uk • www.nhsbsa.nhs.uk/students • Teesside University • Student Services 01642 342277 • studentfinance@tees.ac.uk

18. Loan repayments • Student loans are very different to commercial credit • Interest rate linked to inflation plus up to 3% • How much you pay depends on how much you earn • Nothing to pay until you have left education and earn over £21,000 per year • Low monthly repayments, £45 per month lower than under the current system • Outstanding debt written-off after 30 years

19. Student loan repayments If you earn less than £21,000 Percentage of income 0% 30k Monthly repayments 20k £0 18k Weekly repayments 15k £0 10k

20. Student loan repayments £22,000pa Percentage of income 9% of £1,000 £90 (0.41%) 30k Monthly repayments 20k £7.50 18k Weekly repayments 15k £1.73 10k Payback 9% of earnings above £21,000

21. Student loan repayments £28,000pa Percentage of income £630 (2.2%) 30k 9% of £7,000 Monthly repayments 20k £52.50 18k Weekly repayments 15k £12.11 10k

22. Loan repayment example • Graduate earning £30,000pa gross • Monthly gross income £2,500 • Pension (6%) £150 • Tax £345 • National insurance £195 • Net income £1,810 • Student loan repayment £67.50 • INCOME £1,743.50

23. Summary • You don’t have to pay anything until after you have left education – everyone can afford to study • ‘Risk free’ investment in your future • Many students will have more money for living costs than current students • More of this living cost money will be non-repayable

24. Useful websites • Direct Gov • http://yourfuture.direct.gov.uk/ • Government services website • More information about funding • University websites • Information about courses, bursaries, fee waivers etc • www.tees.ac.uk • Money Saving Expert • www.moneysavingexpert.com

25. ANY QUESTIONS? ?