A PARENTS GUIDE TO STUDENT FINANCE & FUNDING 2013

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1 A PARENTS GUIDE TO STUDENT FINANCE & FUNDING 2013 JAMIE BRADFORD OUTREACH OFFICER

2 A Parents Guide to Student Finance and Funding What do I have to pay for?

3 have to pay for? Tuition Fee Loan Maintenance (living cost) Support Scholarships & Bursaries Additional Support

4 I have to to pay pay for? for? 1. Tuition fees The amount you pay to study at your chosen university 2. Living costs Everything else!

5 I have to to pay pay for? for? Tuition Fees Up to 9,000 per year Most degrees last for 3 years Around 27,000 for tuition How can you pay for tuition fees?...

6 I have to to pay pay for? for? Tuition Fees No up-front payment required Loans from the government available to all UK students Tuition Fee Loan of up to 9,000 per year paid directly to the university Do not start to repay Tuition Fee Loan until after graduation and once earning over 21,000

7 I have to to pay pay for? for? Living Costs Rent, bills, food, transport, books, social life etc. Average cost of student living 7,000 per year The government help with living costs by providing maintenance loans and maintenance grants Universities help with living costs by providing scholarships and bursaries

8 have to pay for? Maintenance Loan Designed to help with the student s living costs Paid directly into the student s bank account in three instalments at the start of each term Money borrowed from the government for the duration of the degree course repayments do not start until after graduation and once earning more than 21,000

9 have to pay for? Maintenance Loan The amount of money each student gets dependent on household income (parent(s), step-parents, co-habiting partners ) means testing Everyone entitled to 65% of max. loan; remaining 35% means tested and depends on: - living at home or moving away from home - studying in London or elsewhere in the UK

10 have to pay for? Maintenance Loan Living away from home (outside London) 5,500 Living with parents (outside London) 4,375 Amounts are calculated on a sliding scale dependent on household income Households with an income of below 42,611 are also eligible for a maintenance grant

11 have to pay for? Maintenance Grant Free money from the government non-repayable Paid directly to the student in three instalments Means tested up to 3,354 available Available to students with a household income below 42,611 If students receive the maintenance grant, the amount they get as a maintenance loan reduced

12 have to pay for? Household income Maintenance Grant Maintenance Loan Total from SFE 25,000 or less 3,354 3,823 7,177 30,000 2,416 4,292 6,708 35,000 1,478 4,761 6,239 40, ,230 5,770 42, ,475 5,525 42, ,500 5,500 45, ,288 5,288 50, ,788 4,788 60, ,788 3,788 Over 62, ,575 3,575

13 have to pay for?

14 have to pay for? Other sources of funding Dabled Students Allowance (DSA) Childcare Grant and Parents Learning Allowance Adult Dependents Grant For more information see NHS & social work courses see nhsbsa.nhs.uk/student Bursaries and Scholarships Free money (non-repayable) awarded by both the government and individual universities Awarded to students from low-income households, for certain subject areas, for academic achievement, talented sportspeople

15 have to pay for? Bursaries and Scholarships Check individual university prospectuses and websites for information and eligibility criteria Be aware of who to to usually the institution TIP always tick the box on the finance application form to agree to share information with institutions Some weird and wonderful ones out there too!

16 have to pay for? The National Scholarship Programme All universities charging over 9,000 for fees participate Up to 3,000 per year available to eligible students with household income under 25,000 Universities will use SFE data and allocate automatically

17 have to pay for? Summary of what s available Tuition Fee Loan up to 9,000 non means-tested (Repayable) Maintenance Loan up to 5,500 means-tested (Repayable) Maintenance Grant up to 3,354 means-tested (Non-repayable) Scholarships and bursaries (non-repayable) With a little help from Bank of mum and dad?? Part-time jobs??

18 have to pay for? Applying for Student Finance Applications handled by Student Finance England Apply for tuition fee loan, maintenance loan and maintenance grant in the same application Apply online NOW! at Deadline 31 st May 2013 to ensure payments on time Complete with details of first choice course and university best case scenario

19 have to pay for? Applying for Student Finance Students regter to create an online account and input their details: - passport number - national insurance number - bank details - details of university and course - parents details (NI & income) Parents regter to create an online sponsor account and input their details: - national insurance number used to verify earnings with HMRC -details of previous year s income -details of any other children/dependents in education You can do th at the same time as the student, or at a later date Both you and the student will get a Customer Reference Number keep safe Your account will be linked with the student s account and application

20 have to pay for? Applying for Student Finance 1. After submitting the application, SFE make the initial assessment to see what the student entitled to approx 6 weeks 2. If they need more info from you they will let you know 3. The student will receive a Student Finance Entitlement Letter which sets out what they will get can also track online 4. The student takes the Entitlement Letter along to regtration at university 5. The university informs SFE and funds are released to the student

21 have to pay for? After graduation tuition fee loan and maintenance loan treated as one loan- the student loan Students start to make repayments in the April after they graduate if they are earning over 21,000 per annum If they aren t they don t repay a penny! s are calculated according to their earnings

22 have to pay for? s are made at a rate of 9% of whatever the graduate earns above 21,000 Salary Amount from which 9% calculated Annual student loan repayment Monthly student loan repayment 20, ,000 1, ,000 3, ,000 6, ,000 9, ,000 15,000 1,

23 have to pay for? s are calculated automatically by HMRC and the employer and deducted at source from wages Loans written off after 30 years The 21,000 threshold will re annually in line with inflation If earnings drop below the threshold repayments will automatically stop The debt belongs to the student and not the parent! Student loans do not appear on credit files

24 have to pay for? Interest Rates Interest rates on the student loan vary: Whilst studying RPI plus 3% After graduation income 21,000 or less RPI income 21,001-41,000 RPI plus up to 3% income 41,001 and over RPI plus 3% More information at s are based on what you earn, not what you owe

25 have to pay for? and Tips Extra sources of income: Part-time job at university Full-time job during the holidays Internships/placements Year out paid work placements Bank of mum and dad?? Making money go further: Student bank accounts interest free overdrafts Student dcounts especially railcard TOTAL =

26 have to pay for? and Tips Encourage students to save over the summer before uni Help students understand the cost of living before they move out! Work out what s included in halls of residence prices Think twice about cars Don t buy every book on the reading lt! second hand & library Apply for Student Finance in plenty of time Hunt down extra scholarships and bursaries thescholarshiphub.org.uk If students are struggling financially help available ask!

27 have to pay for? Useful websites Martin Lew Money Saving Expert Student Finance England Official Student Finance information

28 Any questions?

Vanessa Chetwyn School and College Liaison Officer. Student Finance: A Guide

Vanessa Chetwyn School and College Liaison Officer Student Finance: A Guide Student Finance: A Guide What do I have to pay for? What help is available How to apply How to repay Budgeting and tips Student