Parent s Guide to Finance Post -16

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Claire Pope
5 years ago
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1 Parent s Guide to Finance 2014 Post -16 1

2 In this session: Why Higher Education? Changes in HE Finance: the facts What financial help is there? Repayments How to Apply

3 Why Higher Education? A Higher Education is greatly valued by employers Less chance of unemployment Transferable skills are learnt at university that cannot be learnt elsewhere Faster progression along the career path Higher earning potential

6 Tuition fees the facts Universities are allowed to charge up to 9000 per year for their courses

7 Tuition fees the facts But: Don t pay Tuition fees up front Students will not have to pay it back until they are earning over a year Repayment is very similar to paying tax Bursaries, scholarships and grants are available from the universities

8 How much will it cost? There are two main costs involved: 1. Tuition fees The cost of studying at university (lecturers, equipment, facilities etc.) up to 9000 per year 2. Maintenance costs Accommodation, food, bills (electricity, gas, water), phone, shopping, T.V. licence, insurance, travel

9 Tuition fee comparison University Cost of courses per year University of Nottingham 9,000 Nottingham Trent University 9,000 University of Derby Between 8,100-9,000 Coventry University Between 7,800 and 9,000 University of Sheffield 9,000 Birmingham City University Between 7,500-9,000

10 How can they pay for it? Loans from the Government

11 What financial help is there? Tuition Fee Loan: Repayable loan of up to 9000/year Available to full and part time students Paid straight to your child s chosen HE institution

12 What financial help is there? Living Cost Loan: Repayable loan to cover cost of living Amount varies depending on various factors Paid directly into your child s bank account in three instalments per year

13 How much will they get? The amount received depends on where students live and study: If they live away from home they can borrow up to 5555 If they stay at home they will receive slightly less If they live and study in London they will receive slightly more 35% of the loan for living costs is based on household income

14 Repayment

Repayments Student loans will be combined after your child graduates They only start repaying their loans when they are earning over 21,000 Everything is done automatically,

15 Repayments Student loans will be combined after your child graduates They only start repaying their loans when they are earning over 21,000 Everything is done automatically, there are no forms to fill in If salary drops below 21,000 then repayments stop automatically Completely written off after 30 years Pay back 9% of what they earn over 21,000

16 Repayment Salary Amount of salary from which 9% will be deducted Monthly repayment 21, ,000 1, ,000 4, ,000 9, ,000 14, ,000 19, ,000 24,

17 Repayment Mubashra Kyle Alice 14,000 per year 14,000 per year 10,500 per year 30,000 23,000 23,000 Repayment per month: Repayment per month: 15 Repayment per month: 15

18 Interest rates on loans Students pay interest from the time their first payment is made until they pay their loan back in full. Income Interest rate While they re studying Rate of inflation (RPI) plus 3% 21,000 or less Rate of inflation 21,000 to 41,000 Rate of inflation plus up to 3% 41,000 and over Rate of inflation plus 3%

19 How can they pay for it? Grant from the Government

20 Maintenance grant Money to help with living costs that does not need to be paid back Means-tested government maintenance grant up to a maximum of 3,387 per year The amount they get will depend on your household income They will get some grant if income is under 42,620

21 Financial support package from the Government for 2013/14

22 Additional support from the Government Some NHS courses like Nursing or Midwifery have the tuition fees paid for by the Government Double check with the university to see if the course is eligible / exempt from tuition fees

23 How can they pay for it? Support from universities

24 Bursaries, scholarships and fee waivers All universities charging over 6000 must offer additional financial support to some students As well as the maintenance grant, they may be eligible for a bursary from their chosen university These are non-repayable and usually meanstested

Additional support There may also be bursaries or scholarships available In relation to their chosen course To assist those with disabilities In relation to their sporting

25 Additional support There may also be bursaries or scholarships available In relation to their chosen course To assist those with disabilities In relation to their sporting achievement In relation to their school/postcode In relation to their entry route If they ve spent time in care If they ve been on any additional activities like Summer Schools

National Scholarship Programme The NSP is a government scheme that is designed to help students in their first year whose families earn less than 25,000 Eligible students can apply for funding

26 National Scholarship Programme The NSP is a government scheme that is designed to help students in their first year whose families earn less than 25,000 Eligible students can apply for funding directly to their chosen university after they have been offered a place Awards could be discounted tuition fees, cheaper accommodation, a cash bursary or another form of help Look at the individual institutions financial support pages to find out what your university is planning to offer under the NSP.

27 How to apply

28 How do they apply? Online application:

29 How do they apply? One form will assess their eligibility for: - The tuition fee loan - The maintenance loan - The maintenance grant They can also agree to share the outcome of the income assessment with their university

30 When do they apply? They apply for finance in the year they plan to start university Do not leave it until the last minute! The deadline will be confirmed early in the year, but it is usually the end of May

Key messages There is nothing to pay upfront There is financial support available from the Government There is additional financial support

31 Key messages There is nothing to pay upfront There is financial support available from the Government There is additional financial support available from the universities Repayments are manageable and do not start until after graduation and your child is earning over 21,000 a year

Further information www.gov.uk/student-finance www.nottingham.ac.uk/financial support www.slc.co.

32 Further information support

Student Finance Package

Student Finance Package Student Finance Package overview Tuition Fee Loans Living Cost Loans Repayable Grants National Scholarships Non Repayable Fee Waivers etc Tuition Fee Loan Loan from the Government