Student Finance IAG Resources for Practitioners CRAC Decisions at 18 Conference 29th March 2011
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Student Finance IAG Resources for Practitioners CRAC Decisions at 18 Conference 29th March 2011 Lucy Marwood Jon Legg Student Finance Consultant Student Finance Consultant East Midlands North West
Agenda • Introduction • IAG support • Student finance in 2011/12 • Application process • Student Finance in 2012/13 & Beyond • Repayment • Any Questions?
About us
• Student Finance Consultants
• 12 covering England
• Support IAG partners
• Regional working
• Free tailored training on
student finance packages
and resources
• Contact details on practitioner
website
IAG Support
Prospective & Advisors, teachers
Graduates
current students & support staff
customer_care ssin_queries
via direct.gov @slc.co.uk @slc.co.uk
+ Individual SFCs
Student loan
Practitioner website
repayment website
Practitioner helpline
0845 300 50 90 0141 243 3686
+ Individual SFCs
Information for you To order
Practitioners Website http://practitioners.studentfinanceengland.co.uk Practitioners Website – home of all our Practitioner resources • Specialist Contact information • Information on all our products and more • Lesson plans and information fact sheets • Screen video and mock application
IAG Quality Standards Materials http://practitioners.studentfinanceengland.co.uk ‘Funding your University course’ • 2 lesson plans developed with school and college staff • Trialled and developed with year 13 students • Encourages learners to get an estimate of their finance • Full documentation linking to Ofsted IAG quality standards
Customer Information To order
How to order http://practitioners.studentfinanceengland.co.uk
How to order
Full-time support in 11/12 • Tuition fee loan • Maintenance loan • Maintenance Grant • Extra support for those with special circumstances
Fee amounts for 11/12 • Maximum tuition fee for a publicly funded course: £3,375 • Students can have a non-means tested loan to cover the full fee amount • Fees are paid directly to the HEI • Fees increase each year (2010/11: £3,290) • Fee loans only repaid once earning over £15K pa
Loan amounts for 11/12 • ALL amounts have been frozen at 2010/11 rates • Main loans are 72% non-means tested, 28% means tested • Reduced loans are available to students on sandwich years and to some students who are in receipt of an NHS Bursary
Grant amounts for 11/12 • Frozen at 2010/11 rates; maximum maintenance grant: £2,906 • Grant is fully means tested • Grant is non-repayable • Maintenance loan is reduced by 50p for each £1 of grant payable
Household Maintenance Maintenance Total income Grant Loan support £25,000 £2,906 £3,497 £6,403 £30,000 £1,906 £3,997 £5,903 £34,000 £1,106 £4,397 £5,503 £40,000 £711 £4,595 £5,306 £50,020 £50 £4,925 £4,975 £55,000 £0 £4,106 £4,106 £60,000 £0 £3,564 £3,564 Note: The figures shown are based on a student living away from home and studying outside of London. Different thresholds will apply to those students living at home during their studies and those living/studying in London
Other help in 11/12
• Bursaries: Minimum of £338 (if qualify for full grant & charged max fees)
• Long Courses Loan: Extra means tested loan where study > 30 weeks
• Disabled Students Allowance: Help towards additional costs a student may be
obliged to incur as a result of their impairment, health condition or specific
learning difficulty
• Parents Learning Allowance: Maximum of £1,508 (means tested)
• Childcare Grant: 85% of actual costs (subject to limits & means test)
• Adult Dependant Grant: £2,642 (means tested)
• Special Support Grant: Replaces maintenance grant for some students
• Care Leavers Grant: Speak to your Local Authority (fact sheet)
• Other local support…. Investigate!NHS, Social Work & Teaching Bursaries are available from: • NHS for NHS & Social Work courses • Training & Development Agency for Schools for postgraduate courses of Initial Teacher Training • Specialist advice & fact sheets on Practitioner Website
Click here for the calculator
Info on full-time support here
www.direct.gov.uk/studentfinanceCompare an
estimate of
your
entitlement
for up to 5
coursesGet info on bursaries and scholarships available from each university or college
Full-time applications • Apply now! – New students: deadline 31st May – Current students: deadline 30th June • Send in your signature & your evidence promptly • Let us know straight away if anything changes • Make use of ‘My Account’
Online Application Process
• Login via: www.direct.gov.uk/studentfinance
• Register details online
• Customer Reference Number (CRN) allocated
• Choose password and secret answer
• Submit application online and send in supporting evidence:
– Financial details (prior year tax, aim to verify with HMRC)
– Identity checking (data share with IPS)
– Non-means tested support paid to applicant where financial details
remain outstanding at course start
• Track application progress via ‘My Account’Link to Register and Apply
14th Feb: current students
16th Mar: new students
January 2011
www.direct.gov.uk/studentfinanceImprovements for 2011 • Majority of new applicants should not need to send in financial evidence. • When we do ask customers to send financial evidence, we will only ask for copies of documents and not originals. • Returning students who applied for non-means-tested finance will be processed automatically if their circumstances haven’t materially changed. They will simply need to sign and return the form they receive from SFE. • Improvements to the DirectGov website: simpler information, advice and guidance for customers.
Application Walkthrough & Demo
Developed following multiple requests from
Practitioners to Student Finance Consultants
Two resources:
(1) Series of Online Videos: walkthrough of
different stages of application process
(2) Interactive Demonstration Account which can
be downloaded and used offline
2011/12 Version available soonThings a student can change • Bank Details • Address • Course and/or HEI • Any personal details (up until point of assessment) • Other post-assessment changes need to be actioned traditionally
Link to
My Account
January 2011
www.direct.gov.uk/studentfinance2011/12 Key Messages • Apply now! – New students: deadline 31st May – Current students: deadline 30th June • Don’t wait until you know where you’re going before applying • Don’t wait for exam results before applying – Make use of ‘My Account’ to change details • Send in your signature & your evidence promptly • Let us know straight away if anything changes
2012/13 Proposals • Any reforms will be introduced for those entering higher education in 2012 • Students who defer entry from 11/12 to 12/13 - loans and grants for living costs set at the 12/13 rates - (TBC) • It will be for individual universities to decide what fee they charge to those applying for deferred entry in 2012 • Institutions will also decide eligibility criteria for the new National Scholarship programme. No one with income over £25k will be eligible, however. Strict criteria – (TBC) • For those starting university in 2012, details on student support should be announced by Summer 2011
January 2011
www.bis.gov.uk/studentfinance2012/13 Proposals
2012/13 Proposals
Maximum £6,000, or
£9000 in exceptional circumstances (HEIs must meet tougher conditions on widening
Full-time tuition fees participation & fair access)
Tuition Fee Loan will cover fees charged
Tuition fee loans for part- time courses if intensity 25% +
Part-time tuition fees
Limits expected to be pro-rata to those proposed for full-time students
Variable amounts in 3 bands
Maintenance Loan Loans increased for household incomes from £42K - £60K
Not available to part-time students
Max £3,250: £25K / £42K thresholds
Maintenance Grant
Not available to part-time students
National Scholarship Programme (NSP) of at least £3,000 in benefits which may be:
• Fee discount
HEI Bursary • Free foundation year
• Accommodation or other service discount
• Cash award up to £1000
Please note that these are ONLY proposals: detailed decisions have yet to be taken, and the package
of support available to 12/13 entrants will not be announced until later in 2011
For further info: www.bis.gov.uk/studentfinance2012/13 Proposals Maintenance Loan • A loan of up to £5,500 will be available if they live away from home and study at a university outside London. • A larger loan of up to £7,675 will be available if they live away from home and study at a university in London. • A loan of up to £4,375 will be available if they live with their parents.
2012/13 Proposals Maintenance Loan & Grant – away from home outside London Household income Non repayable grant Living cost loan Total £25,000 or less £3,250 £3,875 £7,125 £30,000 £2,341 £4,330 £6,671 £35,000 £1,432 £4,784 £6,216 £40,000 £523 £5,239 £5,762 £45,000 £0 £5,288 £5,288 £50,000 £0 £4,788 £4,788 £55,000 £0 £4,288 £4,288 £60,000 £0 £3,788 £3,788 Over £62,500 £0 £3,575 £3,575
Student Loan Repayment
www.studentloanrepayment.co.ukLoan Repayment
• Repayments are collected through tax system, starting April after graduation
• Currently; only repay if earning above £15,000 per annum or £1,250 per month
gross
• Proposed; only repay if earning above £21,000 per annum or £1,750 per
month gross
• 9% earnings above threshold are collected for repayment
• Loans taken A/Y 05/06 or before written off when student aged 65
• Loans taken A/Y 06/07 or after written off after 25 years
• Loans taken A/Y 12/13 or after written off after 30 yearsLoan Repayment
Comparison
Income each yr before tax Approximate monthly repayment
Now Future
£15,000 £0 £0
£16,000 £8 £0
£18,000 £23 £0
£21,000 £45 £0
£24,000 £68 £23
£27,000 £90 £45
£30,000 £113 £68
£33,000 £135 £90
£36,000 £158 £113
£40,000 £188 £143New System Monthly Repayment Comparison
Old System
£250
£200
£150
£100
£50
£0
£42,000
£38,000
£34,000
£30,000
£26,000
£22,000
£18,000Additional Info
• Repayment thresholds will be modified:
– The current £15,000 earnings threshold will be
uprated annually in line with inflation from 2012.
– This change will help existing graduates.
– The £21,000 earnings threshold will be uprated
annually in line with earnings from 2016 (when first
new system graduates start repayments)
– No graduate will repay anything until they reach that
income threshold.
NB. The above is all subject to parliamentary approvalAdditional Info
(cont)
• During study and up until the Statutory Repayment Due
Date (SRDD) interest will be RPI +3%
– SRDD for full-time students is April after they
leave/graduate
– SRDD for part-time students is the April 3 years after
course start.
• Then a variable rate of interest depending on earnings:
– Salary < 21K interest will be RPI
– Salary 21K – 41K interest will be RPI + х% depending
on earnings up to…
– Salary > 41K interest will be RPI + 3%Additional Info
(cont)
• A student loan is very unlikely to affect your ability to get a mortgage
(The Council for Mortgage Lenders )
• Mortgage lenders are most interested in your monthly income
(‘ability to repay’)
• Under the new system monthly repayments lower = greater monthly
income
NB. The above is all subject to parliamentary approval2011/12 & 2012/13
2011/12 2012/13*
Tuition Fee Loan Two tiers: max £6,000 or £9,000
(“Graduate Max £3375 £9000 only in exceptional circumstances
Contribution”) Fee Loans for part-time courses if intensity 25% +
Variable amounts in 3 bands – details to be confirmed
Maintenance Variable amounts in 3 bands
Loans increased for household incomes from £42K - £60K
Loan Means tested
Not available to part-time students
Maintenance Max £2906 Max £3,250 - £25K / £42K thresholds
Grant £25K / £50K thresholds Not available to part-time students
New £150m National Scholarships Programme – obligatory
HEI Bursary £338+ for those on full grant paying full fees
for HEI to participate if fees exceed £6,000
Application Separate application process post UCAS No details yet
9% of earnings over £21K threshold (uprated annually in
9% of earnings over £15K threshold (uprated line with earnings from April 2016)
annually in line with inflation from April 2012)
Repayment Interest variable: max RPI + 3%
Interest inflation linked (currently 1.5%)
Written off after 30 years
Written off after 25 years Early repayment arrangements being considered
*Please note that these are ONLY proposals: detailed decisions have yet to be taken, and the package of support available to 12/13 entrants will not be
announced until later in 2011Any Questions
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