Student Finance 2020 A guide for UK/EU undergraduates - LSE

 
Student Finance 2020 A guide for UK/EU undergraduates - LSE
Student Finance
2020 A guide for UK/EU undergraduates
Student Finance 2020 A guide for UK/EU undergraduates - LSE
Student Finance 2020 A guide for UK/EU undergraduates - LSE
Student Finance 2020 1

If you are thinking about going to university in   also many other resources which provide
2020 you may be wondering about the cost           information on student finance and a list of
of tuition, living costs and the availability of   useful websites can be found at the back of
loans and bursaries. This booklet sets out         this booklet.
the financial support which is on offer for        The information in this booklet is correct
new undergraduates at LSE and also what            at the time of going to print in March 2019.
is available from the UK Government. You           Please visit lse.ac.uk/ug/fees-funding for
should read this information carefully to          the most up-to-date information.
make sure that you don’t miss out on money
that you are entitled to receive. There are
Student Finance 2020 A guide for UK/EU undergraduates - LSE
2 Student Finance 2020

LSE tuition fees
Undergraduate tuition fees             Once the tuition fee loan is          Students from Northern Ireland,
for UK and EU students                 arranged, it is paid by the SLC       Scotland and Wales
                                       directly to LSE after you have
At the time of going to print the      registered. The tuition fee loan      Students living in Northern Ireland,
2020 fee has not been set. The         is not paid to the student.           Scotland and Wales, including
2019 fee is £9,250. Any further                                              those who study in England,
inflationary rise would have to be     Students can apply for a loan         receive their financial support
approved by Parliament and is likely   for the full fee or for any amount    from their “home” devolved
to be announced in November 2019.      below the full fee (if you or your    administration. It is a matter for
The fee for new UK and EU students     family want to pay some of the        the devolved administrations
starting in 2019 is £9,250. The fee    fee up front).                        to decide how they wish to
may also rise with inflation in the                                          support their students.
subsequent years of your study.        Interest charged on the tuition fee
                                       loan and the repayment terms are      In 2018, students living in
                                       the same as those applied to the      Northern Ireland and Scotland
Tuition fee loans                      maintenance loan (see page 7).        received tuition fee loans to cover
                                                                             the full cost of the fee for the
Students from England and the EU       Non-UK EU students have been          duration of the undergraduate
                                       eligible to take out a tuition fee    programme. 2019 information
Under the 2019 arrangements,           loan, but this may change with the    has not yet been published.
students ordinarily resident in        terms of the UK’s exit agreement
England and the EU do not have to      from the EU. Information will be      For 2019 students from Wales
pay the tuition fee up front. You do   updated on gov.uk as soon as it       are eligible for a non-means
not have to start repaying the loan    is available.                         tested fee loan of up to £9,250
until you have graduated from your                                           (payable to the university) for
programme and you are earning          More information about tuition        part of the tuition fee, together
over £25,725 per year (see page 7).    fee loans can be found on the         with a loan to cover the balance.
                                       following websites:
The tuition fee loan is administered                                         Students should check the relevant
by the Student Loans Company           Gov.uk                                website below for the latest
(SLC), the company which also          gov.uk/studentfinance                 information on fees and financial
handles maintenance loans for                                                support available for 2020 entry
students. You should apply for the     Moneysavingexpert.com                 from their administration:
tuition fee loan at the same time      Moneysavingexpert.com/students/
that you apply for your maintenance    student-loans-tuition-fees-changes    Northern Ireland
loan, which is usually in the spring                                         studentfinanceni.co.uk
before you start university.
                                                                             Scotland
                                                                             saas.gov.uk

                                                                             Wales
                                                                             studentfinancewales.co.uk
Student Finance 2020 A guide for UK/EU undergraduates - LSE
Student Finance 2020 3

LSE financial support
LSE Bursaries                           Eligibility for the LSE Bursary        LSE Discretionary Bursaries
                                        is assessed annually (in line
UK students                             with annual assessments for            A number of Discretionary Bursaries
                                        maintenance loans).                    are available for LSE students who
In recent years we have offered                                                face exceptional financial need. This
one of the most generous bursary        There is no limit to the number        might include, for example, caring
packages in UK higher education.        of LSE Bursaries available. All UK     responsibilities, financial need related
The LSE Bursary programme for           students who are eligible for an LSE   to disability or the unavoidable
2020 entry will be confirmed in         Bursary will receive one.              requirement to live at home. The value
summer 2019, following approval                                                of the award may vary according to
from the Office for Students. See       The LSE Bursary does not have          need, but is not expected to exceed a
lse.ac.uk/ug/fees-funding for           to be repaid.                          total of £4,000 combined with the LSE
more information.                                                              Bursary. These bursaries do not have
                                        EU students                            to be repaid.
In 2019 bursaries ranged from
£750 – £4,000 based on household        For 2019, students from the EU         You should apply using the application
income using the parameters set         (outside the UK) were eligible for     form, which can be found at lse.ac.uk/
up by Student Finance for living        an EU bursary based on the same        ug/fees-funding. The form should
cost loans.                             income assessment we used for          be returned to the Financial Support
                                        UK students. At the time of going to   Office by 31 August 2020.
You can use a Bursary to help with      print we are unable to confirm this
your living costs or to help pay for    for 2020.                              Although the terms of the UK’s exit
your accommodation. It is up to you                                            agreement from the EU have not yet
how you choose to use your Bursary.                                            been finalised, LSE will continue to
UK students do not have to apply                                               make funding available to all students
separately for the LSE Bursary.                                                regardless of fee status.

We will use the financial information
you provide to the SLC when
applying for your maintenance loan
to determine your eligibility for and
the value of your Bursary, provided
you opt to be means-tested (see
Applying for loans on page 6).

You will be notified during the
summer before the start of your
degree programme of your Bursary
award. The Bursary will then be
paid into your bank account in
three termly instalments. The
first instalment will be paid in the
October of the first term once you
have registered.
Student Finance 2020 A guide for UK/EU undergraduates - LSE
4 Student Finance 2020

LSE scholarships                           Eligibility is often limited by, for   You are advised to apply once
                                           example, place of residence or         you have accepted your offer.
In addition to the LSE Bursary, the        programme of study. However,           The final deadline for applications
School also makes available a              all scholarships are awarded on        will be 1 June 2020.
range of scholarships for its new          the basis of financial need.
undergraduates from the UK, EU and                                                LSE Access to Education
overseas. These scholarships are           In 2019 the following scholarships     Scholarships
donated by external organisations          are available for students from the    LSE is offering three awards made
or alumni of the School.                   UK and EU. Other awards are            up of support for the tuition fee and
                                           likely to come in and you should       livings costs for:
                                           check lse.ac.uk/ug/fees-funding
                                           from Autumn 2019 to see what is        • an asylum-seeker; or
                                           available for students starting
                                           in 2020.                               • a refugee; or

LSE scholarships and eligibility                                                  • a person with humanitarian
                                                                                     protection; or
 Name                              Value                Eligibility
                                                                                  • a person who is resident in the UK
 Kadas Scholarship                 £15,000 per year     Home EU applicant            and has been granted Discretionary/
                                                        from specific countries      Limited Leave to Remain in the UK.
                                                        (three awards)
                                                                                  Priority will be given to those who
 LSE Stelios Scholarship           £10,000 per year     Seven awards from
                                                                                  are unable to access funding from
                                                        Greece, Cyprus and
                                                                                  Student Finance England (or its
                                                        the UK on a business
                                                                                  national equivalent in Northern
                                                        related programme
                                                                                  Ireland, Scotland and Wales), but
 Pass the Torch Scholarships       £10,000 per year     EU or UK applicant        each case will be assessed on need.
                                                        on any programme          If you are assessed as paying the
                                                        (two awards)              overseas fee rate the minimum
 Brian Smith Scholarship           £5,000 per year      Home UK applicant         award will be the difference between
                                                        (preference for female    the overseas fee rate and £9,250
                                                        applicant)                (equivalent to a partial fee waiver).
                                                                                  The maximum award will cover
 New Futures Awards                From £4,000          Up to 15 awards for UK    all fees due and up to £11,385
                                   upwards per year     and EU students on any    for maintenance. Deadline for
                                                        programme                 applications will be 26 April 2020.
Student Finance 2020 5

Government financial support
The following information sets         at LSE) and living away from home      of their parental income. This
out what is available for the 2019     is £11,672. If you study outside       amounts to £5,812 to study in
academic year. Please check the        London or if you live at home while    London (of a total of £11,672).
gov.uk/studentfinance website for      you study, the maximum loan value
the most up-to-date information.       is lower – maximum £7,529.             Income assessed loan: The
                                                                              remainder of the amount you
Maintenance loan                       There are two elements to the          can borrow is means-tested (ie, it
                                       maintenance loan: a guaranteed         depends on your or your parents’
All eligible students from England     loan and an income assessed loan.      household income).
are able to take out a maintenance
loan to help with living costs. In     Guaranteed loan: Part of the           The maintenance loan does have
2019 the maximum loan available        maintenance loan was available         to be repaid.
for students studying in London (ie,   to everyone in 2019 regardless

The scholarship and funding I received enabled me to take up my place to study
law at LSE.
I have always been interested in studying law. LSE is an amazing university with
great alumni, but I also chose it because of its impressive debate agenda, public
events schedule, and ideal location in central London; a melting pot of law firms,
Parliament and government offices. I love the diversity of the city, it’s a great
place to study law and it’s a great place to socialise and have fun.
My programme is both enjoyable and challenging. I feel like my opinion
really counts; in classes I am able to channel my views and engage with
and debate the material from lectures. The support from my teachers and
peers at LSE and the skills I’ve gained have also helped me to advance my
equal access campaign.
I study not only to gain knowledge but to decide how I will use this
knowledge to change injustices within and around my community. I am now
a Pathways to Law mentor here at LSE and this opportunity is invaluable;
it is a pleasure to guide my mentees by offering support as they complete
their A levels.
Chrisann Jarrett
London, UK
LLB
6 Student Finance 2020

Applying for loans                      information which the SLC uses          Household residual income
                                        to assess your eligibility for an
You should apply for both your loans    assessed maintenance loan which         This is effectively the household
(maintenance and tuition fee) in the    is additional to the basic loan of      income BEFORE tax and AFTER
spring before you start university.     £5,812. The information submitted       any pension contributions or
The Student Loans Company               on the application form allows the      allowances for dependent children.
(SLC) usually announces a date in       SLC to calculate the “household
February when applications open                                                 For all those dependent students
                                        residual income” (see section
and a deadline in May by which you                                              (ie, not independent) then the
                                        below). You can also allow your
should submit your application. You                                             income assessment is based on
                                        chosen university to access this
should check gov.uk and slc.co.uk                                               your combined parents’ income –
                                        financial information so that they
for further details.                                                            though if you have substantial
                                        can assess your eligibility for their
                                                                                savings/investments of your own
                                        own bursaries and scholarships.
You and your family will need to                                                generating income they will be
                                        In the case of LSE, this means that
complete a PN1 form which asks                                                  taken into account.
                                        you will not have to apply separately
for a range of financial information
                                        for our Bursaries (see LSE financial
about you and the household in                                                  If your parents are divorced or
                                        support section on page 3).
which you live. It is this financial                                            separated then the SLC will assess
                                                                                the income of the parent you live
                                                                                with most of the time. If that parent
Financial support by household income
                                                                                remarries or has a cohabiting
                                                                                partner, their joint income will then
 Household income                       Income assessed living cost loan        be assessed.
                                        (maximum London rate £11,672)
 £25,000 or less                        £11,672
                                                                                Students from Northern
 £30,000                                £11,020                                 Ireland, Scotland and Wales
 £35,000                                £10,367
                                                                                In 2018 there were grants and
 £40,000                                £9,714                                  loans for living costs available
 £45,000                                £9,062                                  for students from the UK
                                                                                devolved administrations. Please
 £50,000                                £8,409                                  see their websites for information
 £55,000                                £7,756                                  on 2019 support.
 £60,000                                £7,103
 £65,000                                £6,451
 over £70,000/not assessed              £5,812
Student Finance 2020 7

Repayment of loans and                      While studying: The loan                   Graduates earning over £45,000:
rates of inflation                          accrues interest at the rate of            The loan accrues interest at the
                                            inflation, as measured by the Retail       rate of RPI inflation plus 3 per cent.
If you take out a tuition fee loan          Price Index (RPI), plus 3 per cent.
and a maintenance loan they are             This continues until the first April       The table below shows some
bundled together to make one                after graduation after which a             salaries and typical repayments.
combined loan. Interest starts to           progressive taper is applied.
accrue on the loan from the day                                                        The loan is repaid through the
you receive the money.                      Graduates earning less than                income tax system if you work in
                                            £25,725: The loan accrues interest         the UK. Student loans do not go on
You only start to repay your                at the rate of RPI inflation.              credit files.
student loan after you graduate
                                                                                       The student loan is written off
and once you are earning over               Graduates earning between
                                                                                       after 30 years.
£25,725 per year. You only repay            £25,725 and £45,000: The interest
9 per cent of everything you                rate will gradually rise from RPI to RPI
                                                                                       In 2012, the Government
earn annually above £25,725.                plus 3 per cent the more you earn
                                                                                       announced that graduates would
                                            (the interest rises 0.00015 per cent
                                                                                       be allowed to repay their loans
Rates of interest vary throughout           for every extra pound you earn or,
                                                                                       early, if they wished to do so,
the life of the loan and are currently      put another way, if you earn £1,000
                                                                                       without any penalty being applied.
published as:                               more you accrue 0.15 per cent extra
                                            interest). These thresholds rise with
                                            average earnings.

Sample repayments*

 Salary       Amount of salary from            Monthly
              which 9 percent will be          repayment
              deducted
 £30,725      £5,000                           £37.50
 £35,725      £10,000                          £75.00
 £45,725      £20,000                          £150.00
 £50,725      £25,000                          £187.50
 £60,725      £35,000                          £262.50

* Provisional figures based on data supplied by the
Department for Business, Innovation and Skills (BIS)
in December 2017.
8 Student Finance 2020

Other support                             • have at least one dependent            Please visit gov.uk/disabled-
                                             child who is under 17, is registered   students-allowances-dsas for
Students who are eligible                    as having special educational          more information about DSAs.
for benefits                                 needs, and in registered or
                                             approved childcare.                    Parents’ Learning Allowance (PLA)
In 2019, the maintenance
loan available to students who            Please note that from 2019/20             You can apply for a Parents’
qualify for benefits was enhanced.        payments will be made directly            Learning Allowance if you’re a
The maximum loan for study in             to Childcare Providers based              full-time undergraduate student
London was £12,729 and for those          on actual costs incurred. Please          with dependent children. This helps
living at the parental home it was        visit gov.uk/childcare-grant for          with the extra costs associated
£8,946. This replaces the Special         more information.                         with being a parent and a student.
Support Grant.                                                                      You don’t need to be paying for
                                          Disabled Students’                        childcare to be eligible.
Childcare Grant (CCG)                     Allowance (DSA)
                                                                                    Adult Dependants’ Grant (ADG)
You can apply for a Childcare Grant       Disabled students from the UK can
if you’re a full-time undergraduate       access DSAs which are grants to           You can apply for the Adult
student living and studying in            help with extra costs you might face      Dependants’ Grant if you’re a full-
England and you:                          as a result of a disability, long-term    time UK undergraduate student and
                                          health condition, mental-health           you have an adult who depends
• have at least one dependent child      condition or specific learning            on you financially. The adult can
   who is under 15 and in registered or   difficulty like dyslexia.                 be a partner or another adult who
   approved childcare; or                                                           depends on you financially, but you
                                                                                    can’t count grown-up children as
                                                                                    adult dependants.

                            I chose this programme as I knew that it wouldn’t just outline the theory but also highlight
                            and explain the causes behind various issues and situations.
                            During my time here, I’ve also taken part in hosting the Alternative Investments Conference
                            (AIC), which brings together over 300 students from across the world to engage and speak
                            with renowned global hedge fund managers and private equity fund managers.
                            The resources at LSE help you grow and learn, not only in your field of study, but also
                            individually as a person. I feel comfortable that LSE will help me to achieve what I really
                            want in life.
                            Receiving a scholarship has allowed me to feel financially stable. The funding has also
                            allowed me to broaden my horizons both academically and socially; I am able to purchase
                            new books, buy into societies at LSE and go out and meet new people!
                                 Jackson Read
                                   Southend, UK
                                    BSc Government
Student Finance 2020 9

Living costs
The perceived cost of living and           • You can also choose to live in        You might also choose to save
studying in London is a concern               private housing in London in your     money by cycling – there is a public
for many students, but if you plan            first year; in second and third       cycle hire scheme in London, or you
carefully and budget efficiently              year, most students will live in      can use your own bicycle.
then it certainly is possible to              private housing.
take advantage of the amazing
opportunities the capital has to offer,    For more information, see                Useful travel links
whilst living within your means.           lse.ac.uk/accommodation
                                                                                    Transport for London
LSE broadly estimates that                                                          Fares, payment methods, and maps
students should allow £1,100-              Travel                                   for London Underground and buses
£1,300 per month for all                                                            tfl.gov.uk
                                           LSE Halls are all within walking
living expenses, including                 distance of campus, but London           How to get to LSE
accommodation, travel, food,               is a large city and you will need to     lse.ac.uk/lse-information/
laundry, study costs, and other            factor travel costs into your budget.    campus-map
personal expenses.                         The main forms of public transport
                                           are the London Underground
                                           (the “Tube”), buses and taxis. The       Food
Useful budgeting tools
                                           transport system uses “zones” to
                                                                                    We estimate that students will
UCAS budget calculator                     determine how much you pay –
                                                                                    spend £50-£200 per month on
ucas.com                                   central London is Zone 1, with higher
                                                                                    food, depending on whether you
                                           zones the further out you travel.
                                                                                    live in catered or self-catered Halls.
Gov.uk calculator                          LSE, our accommodation and most
                                                                                    There are steps you can take to
gov.uk/student-finance-calculator          cultural attractions are within Zone 1
                                                                                    reduce your food expenditure;
                                           and 2; in second and third year, you
                                                                                    for example, shopping at local
                                           may need to travel out to Zone 4,
                                                                                    markets, shopping and cooking
Accommodation                              depending on where you live.
                                                                                    with your flatmates, and bringing
LSE provides a range                       As a student, you are entitled to        a packed lunch to university.
of accommodation for first year            receive 30 per cent off standard
students, with varying costs               Tube and bus fares if you purchase
depending on location, room type           a Student “Oyster Card”. See the
and facilities.                            table below for typical travel fares.
• LSE Halls cost between £107
   and £405 per week                                         Weekly travel with student    Monthly travel with student
                                                             discount                      discount
• This includes utility bills, internet
                                            Zone 1 only      £24.50                        £94.10
   access and contents insurance
                                            Zones 1-2        £24.50                        £94.10
• Pay up front or in three
                                            Zones 1-3        £28.80                        £110.60
   termly instalments
                                            Zones 1-4        £35.30                        £135.60
• In catered halls, one or two of
   your daily meals will be included.
   In self-catered halls, you will need
   to buy your own groceries
10 Student Finance 2020

Study costs                             Personal expenses                      Useful links for
Study costs include books,              You will also need to consider         saving money
stationery and any other equipment      how you will budget for things like    NUS extra discount card
to assist you with your studies.        clothing, gym memberships, nights      nus.org.uk
Although some students prefer to        out, mobile phone bills, or anything
buy books new, you can save a lot       else that you will want to buy.        LSE Students’ Union
of money buying them second-                                                   lsesu.com
hand from older students or recent      Remember that students are
graduates. You don’t necessarily        often entitled to discounts. The       Student Beans
need to buy even your core texts –      National Union of Students (NUS)       Discount site for students
the library stocks multiple copies of   discount card will give you access     studentbeans.com
core and recommended readings           to discounts across clothing, food
(as well as single copies of more       and socialising. The LSE Students’     Time Out magazine
specialist books). A large amount       Union offers lots of societies,        Weekly events listings for London,
of reading material is now also         activities and social events at        including free things to do
available online.                       cheap rates. London is also full of    timeout.com
                                        free activities – for example, most
                                        museums are free to enter.
Student Finance 2020 11

Further information
The following websites provide        LSE undergraduate fees                Students from Scotland
more information for prospective      and funding                           saas.gov.uk
university students:                  lse.ac.uk/ug/fees-funding
                                                                            Students from Wales
Moneysavingexpert.com                 Gov.uk                                studentfinancewales.co.uk
LSE alumnus Martin Lewis has          gov.uk/studentfinance
also published a number of
YouTube videos about student          Students from Northern Ireland
funding and money matters.            studentfinanceni.co.uk
moneysavingexpert.com/
students/student-loans-tuition-
fees-changes

The best thing about studying at LSE is the academic and social side of the
university. You are mixed in with the brightest people and you are taught by
famous professors. Also, in London, there are so many activities you can
take part in.
Receiving the scholarship has eased my financial difficulties and has given me
the opportunity to concentrate on my studies and hobbies. I joined the Football
Society (LSESU FC) and I could never imagine having so much fun.
The biggest opportunity I think is that you have global firms coming to
campus and giving you presentations. You get a real insight into these
firms and the chance to get to know their employees.
When I graduate, I would like to do my master’s degree at LSE.
In three years’ time I will have a better understanding of
what I would study, but I can already imagine myself
studying another management degree.
Anh Phung
Prague, Czech Republic
BSc Management
12 Student Finance 2020

    Meet, visit and discover LSE

         4
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3      4           Thursday, 4 July 2019

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Student Finance 2020 13
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