Institute of Money Advisers Virtual Annual Conference 2021 - Headline sponsor
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Institute of Money Advisers
Virtual Annual Conference 2021
Headline sponsor Virtual exhibitors
Advising Students Emma Quirke, NASMA, England Policy Board Member
Advising Students
• Student Finance Income
• Who gets what and why
• How to budget it
• Is it a debt?
• Universal Credit
• Who gets it
• Student Finance Income
• How to budget it
• Student related expenditure
• Student related debts
• University Hardship Funds & University
Support
Asim • Student Finance • University Bursary • Student Interest Free Overdraft • Part-time job • Bank of Mum & Dad • Moving into University Halls of Residence
Sarah • Student Finance • University Bursary • Universal Credit • Lives in housing association property local to the University
www.gov.uk/student-finance
Student Finance for full-time
undergraduate study 2021/22
Product Purpose How much Means-tested Paid
Tuition Fee Loan To cover the cost of the £9,250 No Directly to the University
tuition fees from the SLC in 3
instalments
Maintenance Loan To contribute to the Max £9,488 Partly To the student in 3
student’s daily essential instalments, one at the
start of each term (Sept,
costs
Jan, April)
Parents Learning To help with the costs of Max £1,821 Yes To the student in 3
having children and instalments, one at the
Allowance start of each term (Sept,
studying
Jan, April)
Childcare Grant To contribute to the Up to 85% of costs up to Yes Directly to the childcare
costs of registered a max of £179.62 a provider via 3rd party
system
childcare week for one child,
£307.95 for 2 children
Adult Dependants To help with the costs of Max £3,190 Yes To the student in 3
having an Adult who instalments, one at the
Grant start of each term (Sept,
depends on the student
Jan, April)
financially
Maintenance Loan (England) 2021/22
Household income Maintenance loan amount Maintenance loan amount Maintenance Loan
examples if living in the parental London rate
home
£25,000 and under £9,488 £7,987 £12,382
£30,000 £8,809 £7,315 £11,692
£35,000 £8,130 £6,642 £11,001
£40,000 £7,450 £5,969 £10,311
£42,875 £7,060 £5,582 £9,914
£45,000 £6,771 £5,296 £9,620
£50,000 £6,092 £4,623 £8,929
£55,000 £5,412 £3,950 £8,239
£60,000 £4,733 £3,516 £7,548
£62,286 and over / Basic £4,422 £3,516 Basic rate £70,004+
rate £6,166
www.studentfinancewales.co.uk
Maintenance Funding (Wales)
Household Living with your Living with your Living away from Living away from Living away from Living away from
Income parents parents home, studying home, studying home, studying home, studying in
outside London outside London in London London
Grant Maintenance Loan Grant Maintenance Loan Grant Maintenance Loan
£18,370 or less £6,885 £1,905 £8,100 £2,250 £10,124 £2,806
£25,000 £5,930 £2,860 £6,947 £3,403 £8,643 £4,287
£35,000 £4,488 £4,302 £5,208 £5,142 £6,408 £6,522
£45,000 £3,047 £5,743 £3,469 £6,881 £4,174 £8,756
£59,200 £1,000 £7,790 £1,000 £9,350 £1,000 £11,930
Total £8,790 £8,790 £ 10,350 £10,350 £12,930 £12,930
www.studentfinanceni.co.uk www.saas.gov.uk
• Northern Ireland • Scotland
• Combination of loan and • Combination of loan and
grant bursary
• Lower amounts than SFE • Lower amounts than SFE
• Staying in NI tend to live in • Tend to stay in Scotland
parental home lower fees (covered)
• Scottish bursary from SAAS
paid monthlywww.moneysavingexpert.com/students/
• Yet the truth is what we call a student loan isn't
really a debt like any other, in fact it acts far
Martin Lewis, more like a tax than a loan….
Money Saving
Expert • But in reality it isn't a tax, it's more of a
contributory contract. In effect though, it's
somewhere between the two.www.gov.uk/repaying-your-student-
loan
• One Student Loan repayment account with all
loans on there
• Only repay when earning over £27,295
•
Repayments •
Repay 9% of what you earn (over £27,295)
Earnings drop below £27,295 – repayments stop
(England) •
•
Deducted from wage like income tax
NOT related to how much borrowed
• Not on credit file
• Related to student’s earnings only (not partner)
• After 30 years anything outstanding is written off
• Interest rate RPI / RPI plus 3% depending on
income / studying
• Interest accrues from when payment is made to
student or UniversityRepayment examples
Earnings (Gross) Annual Repayment Monthly wage deduction
£21,000 £0 £0
£25,000 £0 £0
£27,000 £0 £0
£29,000 £153 £12
£40,000 £1,143 £95
£60,000 £2,943 £245Asim • Student Finance • University Bursary • Student Interest Free Overdraft • Part-time job • Bank of Mum & Dad • Moving into University Halls of Residence
Budgeting Asim
Income Paid
• 3 instalments over 4 quarters –
Maintenance Loan £8,809 Sept, Jan, April. NOT June
• 2 instalments of £500 in October
and January (spends 1st instalment
University Bursary £1,000 on laptop and 2nd on deposit for
house in 2nd year)
Part-time work £6.56 an • Weekly. Shifts vary based on
seasonal demand
hourMaintenance Loan payment amount
remains the same regardless of length
Term 1 Term 2 Term 3 of term
Sept - Dec Jan - April April - June
Uni halls payment can change
Amount of maintenance funding £2,936.00 £2,936.00 £2,937.00 depending on number of weeks in a
Hall fees / rent £2,080.00 £1,950.00 £1,430.00 term
Remaining amount £856.00 £986.00 £1,507.00 Halls includes bills and insurance
Number of weeks in term 16 15 11
Differing weekly disposable income
Remaining amount after rent
paid divided by number of
weeks £53.50 £65.73 £137.00
How do you factor in an overdraft and
PT earnings actual / expected £104.96 £52.48 £78.72 parental income
total weekly income £158.46 £118.21 £215.72
Looks ok?.............
Overdraft £0.00 £0.00 £0.00
Parental Partner contribution £0.00 £0.00 £0.00
total weekly income £158.46 £118.21 £215.72Term 1 Term 2 Term 3 Summer
How do students June -
pay summer Amount of maintenance funding
Sept - Dec Jan - April April - June
£2,936.00 £2,936.00 £2,937.00
September
£0
rent? Hall fees / rent £2,080.00 £1,950.00 £1,430.00 £1,287.00
Remaining amount £856.00 £986.00 £1,507.00 -£1,287.00
• Arrange monthly rent payments over
summer if possible
• Ask for ‘half-rent’ / no rent during Number of weeks in term 16 15 11 13
summer if not living there (rare) Remaining amount after rent
paid divided by number of
weeks £53.50 £65.73 £137.00 -£99.00
• Working during summer period PT earnings actual / expected £104.96 £52.48 £78.72 £78.72
• Money saved up from term-time work / total weekly income £158.46 £118.21 £215.72 -£20.28
maintenance loan
• Money from parents / carers
Overdraft £0.00 £0.00 £0.00 £38.00
• Back pay from September instalment of
maintenance loan Parental Partner contribution £0.00 £0.00 £0.00 £23.00
total weekly income £158.46 £118.21 £215.72 £40.72Sarah • Student Finance • University Bursary • Universal Credit • Lives in housing association property local to the University
• Full-time students only eligible for Universal
Credit if in certain groups
• Responsible for a child
• In receipt of PIP and have been assessed
as having limited capability for work
• Others, these are main ones
Benefits • Advice is stay on legacy benefits if possible
as usually better off
• Full-time students not eligible for Carers
Allowance or Job Seekers Allowance
• Independent young people studying at
non-advanced level (B tecs, A levels,
Access course) can receive UC – but not
eligible in this category for HE studyHigher maintenance loan with Special Support
Element 2021/22
Household income examples Maintenance loan amount Maintenance loan amount
Special Support categories
£25,000 and under £9,488 £10,815
£30,000 £8,809 £9,765
£35,000 £8,130 £8,715
£40,000 £7,450 £7,664
£42,875 £7,060 £7,060
£45,000 £6,771 £6,772
£50,000 £6,092 £6,092
£55,000 £5,412 £5,413
£60,000 £4,733 £4,734
£62,286 and over / Basic rate £4,422 £4,422What counts in a UC assessment? • Sarah entitled to student finance in 2021/22 of: • £10, 815 maintenance loan • (£4,014 disregarded as ‘Special Support element in 2021/22) • = £6,801 counted in UC assessment • Parents Learning Allowance, Childcare Grant are disregarded • Adult Dependents Grant might be counted • University bursaries
How is it then assessed as income
= £6,801
£10,815 total Divide over
- £4,014 SSE maintenance loan
maintenance loan assessment
element counted in
for the year periods:
assessment
If academic year
1st year dates are Month in which
starts in Sarah’s assessment
27th September – long vacation starts
assessment period period is 3rd month
10th June does not count
then counted
So we count
September – May
(9 months)How is it then assessed as income • £10,815 maintenance loan • - £4,014 SSE element • = £6,801 • / 9 months • = £755 • - £110 disregard • = £655 a month counted in assessment from September – May • June – August / September (depending on start date of second year) no student finance income counted. UC should increase
Student Finance in Universal Credit checklist ✓ Need correct student finance first ✓ Need to know correct course dates (student expectation) ✓ Has any student finance being counted that shouldn’t? ✓ Has it been divided over correct number of months / payment periods? ✓ Has £110 disregard been applied? ✓ Summer – has maintenance loan been disregarded?
Universal Credit entitlement single over 25 £411.51 2 children £519.58 housing £594.99 total allowances £1,526.08 student finance income (other) £655.00 advance payment deductions £93.00 total UC per month £778.08
Maintenance Loan £10,815 - 3 instalments over 4 quarters –
Sept, Jan, April. NOT June
Parents Learning Allowance £1,821
Budgeting Childcare grant pays £127.50 of her £150 a week childcare. She
needs to pay around £900 for the year - SFE amount direct to
Sarah childcare provider
University Bursary £1,000 - 2 instalments of £500 in October
and March
Universal Credit £778 a month - Monthly12 months 9 months Summer maintenance loan £10,815 £10,815 £0 PLA £921 £921 £0 Bursary £1,000 £1,000 £0 UC £11,301 £7,002 £4,299 total for year £24,037 £19,738 £4,299 total for month £2,003 £2,193 £1,433
According to the
Save the Student
Student Money
Survey 2020,
average costs of
living for students
across the country
How does this measure up against
are…
the average student support
students receive?
Average Maintenance Loan amount based on FOI information from Student Loans Company (SLC), requested by Save the Student.Expenditure
Rent – Uni halls, private
student halls, student Utility Bills (usually
properties, required Rent summer included in hall costs),
payments usually in line travel, food
with maintenance loan
Deposit for house in
School based training
Course costs – books, IT next renting year
periods, NHS
equipment, specialist (usually due in Jan /
placements – can’t work
course equipment Feb), placement clothes
during that time
and travel
Social integration –
Council tax – Full-time Student discounts and
clubs, societies,
students exempt passes (travel)
University lifestyleBudgeting – why does it go
wrong?
Different payment
times, different
Instant gratification Peer pressure
amounts,
fluctuating income
Isolation Integration Temptation
Out of practice / No Servicing pre-
boredom
practice existing debtsBudgeting tools
Budgeting – why is it harder
for some?
Domestic
Estrangement Care Leaver
abuse
Substance
Asylum seeker Mental Health
abuse
Gambling• According to the NUS Covid-19 and
Students Survey:
• Nearly 1 in 5 furloughed
• 37% taking unpaid leave,
having hours reduced, or
being made redundant/let go
• Half say the income of
someone they rely on for
support, such as parents, has
been impactedAsim • Student Finance • University Bursary • Student Interest Free Overdraft • Part-time job • Bank of Mum & Dad • Moving into University Halls of Residence
Rent
University
Students &
Debt Student Loans Company
OtherDebts – Rent (Private) Particularly summer period More so term time due to pandemic Joint tenancy – housemate leaves (doesn’t pass the year) and does not pay. All are liable Proposing future payments from student finance (if get maximum) Job hunting / job increasing (Careers services) paying small amounts from wages Hardship Funds – stop action being taken Council / Housing association
Accommodation fees
• Legally cannot prevent progression or graduation
• Finance Offices will negotiate plans with students
• Will refer to debt collection agencies if no contact
• Student Support / Student Union can help with budgeting
Debts – to for payment plan
• May evict if no payment at all and no contact
the • Vulnerable students
• Hardship funds – paying ourselves?...
• Will offset bursary payments on request / automatically
University depending on University policy
Accommodation fines / damage
Library FinesStudents not eligible for tuition fee
loan support
Tuition Fees Postgraduate students
Students funding revoked
Can legally prevent progression & graduation
Debts to Usually always prevents graduation
University
Hardship Funds – cannot support tuition fee debt,
budget, paying ourselves?
Can be factored into normal debt repayment plan
BUT still cannot graduate• Overpayment of student finance
• Suspension / withdrawal dates
• Reassessment of household income
• Eligibility reassessed
• Not collected in the normal way (earning over threshold)
Debts to • Public funds have to be collected in fastest way possible
the Student • Suspension of studies – deducted from future student finance
entitlement
Loans • Withdrawal – bill through the post. Negotiate like any other debt
CompanyChildcare arrears
Student overdrafts – fine if managed well, if not
need a repayment plan – many not managed well
Debts - due to pandemic
other Pre-existing council tax
Friends and FamilySave the Student, Student Banking Survey 2021 – 1 in 5 students have used BNPL
Discretionary to University but NASMA produces national
guidance yearly
Budgets vary, resources vary
University Tailored to student body, courses
Hardship Priority Groups (Care Leavers, Estranged students, final
Funds year, single parents, mature students pre-existing debts…..)
Standard assessment (income v expenditure)
Non-standard assessment (exceptional circumstances…….)Not resourced to ‘pay off’ debts
Will consider min pays for priority debts
University Will consider min pays for DMP for non-priority
Hardship Some Universities more generous than others
Funds and We have paid court appointed bailiffs
debts We have paid council tax arrears
Referral to external agencies for multiple, significant debts
Do consider personal debts (friends / family) if evident causing stress• Applies in the summer
• Not in any priority groups
• Evidences 1 month of rent arrears
Asim and the • Has reached overdraft limit and has £0 in his savings
account
Hardship Fund • Was ill for two weeks so could not work so no wage
coming in for four weeks time
• Fund not resourced to pay all students summer rent
• Awarded £250 to help get him some food and travel
to work
• Adviser helps him put together a plan for paying rent
arrears• “I am a single parent with 3 kids. My ex has stopped
Adviser gave advice on Tax paying child maintenance because he is not working
credits / UC issue because of lockdown. Tax credits have just stopped
my payments because I didn’t give some evidence
Issued with IT Desktop but now they are saying I have to apply for Universal
Loan Credit but that will take at least 6 weeks until I get
any money from them. I spent all my loan and I don’t
Referred to External get another payment for another 2 months. I have
Agency for help with large lots of debts that I haven’t been able to pay for ages
quantity of unpaid debts and I’m scared someone will come to the door and
take my stuff. I’m also scared they’re gonna kick me
Referred to Academic off my course because I haven’t done the online
support unit for help stuff because my son needed my laptop for his
catching up with studies home school lessons”Help with student
finance application to “My Dad left my Mum and ran off with our
take out basic neighbour who is 16. My Dad was paying
maintenance loan for my travel to uni and my books and
stuff. My mum has no money now but
Referred to mental won’t tell anyone what has happened
health and wellbeing because it will be seen as shameful and
service dishonourable. I am walking 12 miles
everyday for my classes but I don’t think I
Provided with leaflets
for referrals for Mother will be able to finish my final year. I cry all
the way there and back”University support Personal Tutor Hall Warden Careers Service – job seeking service, CV checking, interview advice Disability Services Pastoral Support, Money Advice Services Housing Advice & Guidance Events to help integration & engagement Faith Spaces Mental Health and Wellbeing services Academic support units Students Union
www.nasma.org.uk
• Institution Contacts (website)
• Training
• Universal Credit, Addiction & Money Management, Independence
& Estrangement, Supporting Students in a Virtual Environment,
Introduction to Student Funding
• Annual Conference
• Accreditation scheme
• Representing members voice and student voice at SLC, MALG, DWP and
others
• Regional meetings / mailbase – sharing of good practice
• office@nasma.org.ukUseful contacts • Student Finance England https://www.gov.uk/student-finance • Student Finance Wales https://www.studentfinancewales.co.uk/ • Student Finance Northern Ireland https://www.studentfinanceni.co.uk/ • SAAS https://www.saas.gov.uk/ • SLC repayments https://www.gov.uk/repaying-your-student-loan • Universal Credit https://www.gov.uk/guidance/universal-credit-and- students https://www.turn2us.org.uk/Benefit-guides/Full-time- students-and-benefits • Bursaries – University Websites
Useful contacts • Save the Student https://www.savethestudent.org/ • Money Saving Expert https://www.moneysavingexpert.com/students/ • UCAS https://www.ucas.com/finance/managing-money • SFE practioners website (guidance and eligibility documents for practioners) Student Finance England for Practitioners (slc.co.uk)
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