Student Finance: A Parent s Guide By Kimberley Lloyd Schools and Colleges Liaison Officer
Student Finance: A Parent s Guide Overview of a Student s Finances The Student Finance Package How to Apply What you will need Repayment
Application Process September 2016 UCAS cycle opens Submit applications to universities 15 th October 2016 First UCAS deadline Oxbridge, Medicine, Vet Science January September 2017 Research courses, attend Open Days Plan your application 17 th August 2017 Results Day! Confirmation & Clearing End of May 2017 Firm and Insurance choices need to be decided. September 2017 UNIVERSITY and the start of the best years of your life! 31 st March 2017 Deadline for universities to make offers. Internal Deadline After Oct half term but usually before Christmas 15 th January 2017 Second UCAS deadline - Last point at which university gives equal consideration to applications.
Overview of a Student s Finances Student Finance Tuition Fee Loan (repaid) Maintenance Loan (repaid) Additional Finance Support (Free) University Bursaries & Scholarships (Free) Supplementary Income Savings Employment Family
Tuition Fee Loan The fee you pay to study at University Up to 9,000 per year Up to 1,350 for an Erasmus year overseas or work placement year Up to 1,850 for Sandwich work placement year Available to all UK students No upfront payments Is NOT dependant on Household Income Paid directly to the university following enrolment Apply through Student Finance England
Maintenance Loan Paid directly to the student at the beginning of each academic term Apply through Student Finance England Must apply for the loan each year
Maintenance Loan: Eligibility All UK students whilst at university can borrow Up to 6,904 if living with parents Up to 8,200 if living away from home (Outside London) Up to 10,702 if living away from home (Inside London) Up to 9,391 if you spend a year of a UK course studying abroad Household Income Where you live and study The year of study you are in
Maintenance Loan: Eligibility All UK students whilst undertaking a sandwich year placement can borrow Up to 1,915 if living with parents Up to 2,553 if living away from home (Outside London) Up to 3,585 if living away from home (Inside London)
Maintenance Loan: Household Contribution
Maintenance Loan: Eligibility www.gov.uk/student-finance-calculator
Other Sources of Funding Childcare Grant Parents Learning Allowance Adult Dependents Grant Disabled Students Allowance (DSA) Child Tax Credit Studying Abroad: Travel Grants See www.gov.uk for more information
Scholarships & Bursaries Universities offer scholarships and bursaries to help with both living costs and tuition fees. Normally awarded based on: Specific Skills/ Talents High Academic Achievement Personal Circumstance Household Income University and College Hardship Fund Find out more: http://www.thescholarshiphub.org.uk and visit university websites.
Supplementary Income Part-time job at university Full-time temp job during the holidays Internships and placements Savings Bank of mum and dad?!
How to apply for Student Finance Apply in the Spring before you start university (January 26th onwards) Apply online www.gov.uk/studentfinance Apply for Tuition Fee Loan and Maintenance Loan in same application to Student Finance Apply for scholarships and bursaries directly to universities OR elect to share your information
Step-by-Step: How to apply for Student Finance 1. Set up a student finance online account. 2. Log in and complete the online application. 3. Include details of your household income and get your parents (or partner) to support your application, if needed. 4. Send in proof of identity, if needed. 5. Sign and return the loan declaration, which you should receive within 6 weeks.
What you ll need to apply What a student needs to complete the application: Passport (having a valid passport number speeds up the process but isn t essential) University and course details Bank account details National Insurance number Sponsors contact details (usually parents/carers)
What you ll need to apply What a parent needs to complete the application: National Insurance number(s) Household income information (based on prior tax year*) P60 Interest and Investments and Pension statements Benefits book Self Assessment tax returns Proof of Divorce/Seperation Details of other child dependants
Applying for Student Finance FAQ s Taxable earned income includes: Wages, salaries, tips, and other taxable employee pay Long-term disability benefits received prior to minimum retirement age Net earnings from self-employment Taxable unearned income includes: Interest from savings (only the annual summary is required) Benefits and pensions Rent from property or a room If Student s do not apply on time, the loans are not guaranteed to be available for the first week of term It takes atleast six weeks to process an application Students don t need a confirmed place at university or college to apply Apply with their preferred choice, they can change details later if they need to
Applying: Top Tips Make sure you apply on time! Keep a copy of your child's Customer Reference Number (CRN) Always include the CRN on everything that is sent in Agree to share information from their application, this way universities can assess the student for some bursaries and scholarships Make sure any evidence and information needed to support their application is supplied first time (students and parent/partners) Submit an application even if there s a delay in getting sponsor income details so some funding will be available when they start their course Print out, sign and send us their declaration form as soon as possible so as not to delay payments
Repayment After graduation, the tuition fee loan and maintenance loan are treated as one loan Repayments start the April after graduation and once the graduate is earning above 21,000 Repayments are calculated at 9% of earnings above the 21,000 threshold Repayments are calculated by HMRC and taken directly from your wages before it enters your account If they move/work overseas, repayments will be 9% of any earnings over the threshold for the country they are living in.
Repayment Amounts Student s Income 9% Deducted from? Approx. Annual and Monthly Repayment
Repayment FAQ s If the graduate s salary ever drops below 21,000 repayments stop automatically Student loans: Will NOT impact on parents, future partners or children Will NOT hinder any future financial arrangements Are written off after 30 years No penalty for making early repayments Interest is charged on the loan at a rate of RPI plus up to 3%
Interest Interest charged will depend on a student s income and circumstances: During study until entering repayment Income: Under 21,000 Income: 21,000 to 41,000 Income: Over 41,000 Interest rate: Retail Price Index +3% Interest rate: RPI Only Interest rate: RPI + Up to 3% Interest rate: RPI + 3%
Other things to consider A Student bank account Affordability Hidden Costs Accommodation Deposit Contents Insurance TV License Fresher s week!!!
Useful Information Martin Lewis Money Saving Expert www.moneysavingexpert.com/students The Student Room www.thestudentroom.co.uk Official Student Finance Information www.direct.gov.uk/studentfinance www.gov.uk/student-finance-calculator To apply www.gov.uk/student-finance-register-login