STUDENT FINANCE ENGLAND HELOA Teacher and Adviser Conference Wednesday 7 th May 2014 Kevin McMullan (Student Finance Adviser, East Midlands) www.gov.uk/studentfinance
i SESSION CONTENTS The Student Finance Information Team (SFIT) The Student Finance Package Looking Ahead to 2015/16 News and Updates Applications & Information : Get it right first time How Repayment Works? Practitioner Resources
i THE STUDENT FINANCE INFORMATION TEAM Provide training, updates CPD opportunities for staff and practitioners Assist in providing student finance updates at appropriate events (parents) Signposting to a range of free resources Student finance mailing list (East of England specific) Statement of Service
www.gov.uk/studentfinance THE STUDENT FINANCE PACKAGE
2014/15 AT A GLANCE WHAT IS AVAILABLE? TUITION FEE LOAN Non-Means Tested for whatever your being charged (up to 9000 max) MAINTENANCE LOAN Parents (max of 4418), Elsewhere (max of 5555), London (max of 7751) 65% non means tested, 35% means tested MAINTENANCE GRANT Means Tested (non-repayable) grant of up to 3387 ADDITIONAL SUPPORT Student with children / Student with disabilities...and don t forget about bursaries and scholarships...
LOOKING AHEAD TO 2015/16* WHAT IS AVAILABLE? TUITION FEE LOAN Maintained at the same level as 2014/15 (max of 9000) MAINTENANCE LOAN Increase in maximum rate of Maintenance Loan in line with inflation (+3.34%) MAINTENANCE GRANT Maintained at the same level as 2014/15 (max of 3387) ADDITIONAL SUPPORT Increase in maximum rates line with inflation (+3.34%) *All rates subject to final Parliamentary Approval
NEWS AND UPDATES Application data... New free phone telephone number for students New end to end Welsh Service Part Time Application Cycle 2014/15 ready to launch Proposal for new Sharia Compliant Loan System New email contact for Practitioners:- - right_first_time@slc.co.uk - referral via Regional Adviser New Online Application Platform (and Application Demo)
SECTION 3 APPLICATIONS & INFORMATION
3 STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - KEY MESSAGES Apply online at gov.uk/studentfinance as soon as possible to make sure their student finance is in place for the start of their course The application cycle for 2014/15 is OPEN NOW Students do not need a confirmed place at university or college to apply for student finance Make a note of their account log-in details & keep them safe They can change most details online before starting their course Agree to share information from their application, this helps apply for many bursaries and some scholarships
3 STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - COMPLETING AN APPLICATION Before starting the application, students should have the following to hand: Passport - SLC can check identity using valid UK passport details for most students University and course details Bank account details and National Insurance number If you will be supporting a students application you will need to set up your own account on GOV.UK and provide information including: National Insurance number(s), household income, details of other child dependent s If you can t submit your income details online, send a photocopy of evidence including: P60, Pay slips, Tax return, or Pensions
3 APPLICATION INFORMATION COMPLETING AN APPLICATION
3 NEW LOOK MY ACCOUNT MAKING IT EASIER TO NAVIGATE & UNDERSTAND
3 NEW LOOK MY ACCOUNT MAKING IT EASIER TO NAVIGATE & UNDERSTAND
3 NEW LOOK MY ACCOUNT MAKING IT EASIER TO NAVIGATE & UNDERSTAND
SECTION 4 STUDENT LOAN REPAYMENTS
4 STUDENT LOAN REPAYMENTS AN OVERVIEW You won t make repayments until your income is over 21,000 a year gross (before tax) Full-time students will be due to start repaying in the April after graduating from/leaving their higher-education course www.youtube.com/sfefilm You ll repay 9% of your income over 21,000 and if you re employed deductions will be made from your pay through the HMRC tax system If your income falls to 21,000 or below your repayments will stop Any outstanding loan balance will be written off 30 years after entering repayment
4 STUDENT LOAN REPAYMENTS THE FIGURES Income each year before tax Income from which 9% is deducted Monthly Repayment (Approx) 21,000 0 0 25,000 4,000 30 30,000 9,000 67 35,000 14,000 105 40,000 19,000 142 45,000 24,000 180 50,000 29,000 217 60,000 39,000 292 Early repayments can be made at any time, but any outstanding loan balance will be written off 30 years after entering repayment
4 STUDENT LOAN REPAYMENTS THE INTEREST Interest added will vary, depending on a student s circumstances: During study until entering repayment Income: Below 21,000 Income: 21,000 to 41,000 Income: Above 41,000 Interest rate is: Retail Price Index (RPI) +3% Interest rate is: Set at RPI Only Interest rate is: RPI plus up to 3% Interest rate is: Retail Price Index (RPI) +3% The interest rate applied is updated once a year in September, using the rate of RPI from that March which is carried forward
4 STUDENT LOAN REPAYMENTS A COMPARISON Example 1 Old System Student 3 year course, 3,000 a year fees 4,000 a year maintenance loan 25 year write off period Owes 23,000 at end of studies, including interest Starting Salary of 24,000 Example 2 New System Student 3 year course, 9,000 a year fees 4,300 a year maintenance loan 30 year write off period Owes 45,000 at end of studies, including interest Starting Salary of 24,000 Total Repayments = 35,500 Total Repayments = 22,000 Repay full balance in 24.5 years Balance written off after 30 years! Assumptions: 2% salary growth, 3% average inflation. Based on a report by HEPI on the Government White Paper, available here.
4 STUDENT LOAN REPAYMENTS DEDICATED WEBSITE www.studentloanrepayment.co.uk
SECTION 5 PRACTITIONER RESOURCES
5 PRACTITIONER RESOURCES DEDICATED WEBSITE www.practitioners.slc.co.uk
5 PRACTITIONER RESOURCES Money Matter e-mag Suite of Factsheets Series of Full and Quick Guides PowerPoint Presentations Videos and Marketing Materials Policy Documents and SFE Updates Application Demo 2014/15 Links to interactive features, including SFE A Minute For videos
5 PRACTITIONER RESOURCES SUPPORT FOR PRACTITIONERS Student Finance Advisers: Our team of dedicated regional advisers work closely with key partners across England to deliver a range of services including: Staff development through bespoke training, Advice and support with SFE resources, policy and processes If we can support you and your colleagues with any area of student finance IAG delivery, please do get in touch: www.practitioners.slc.co.uk/regional-support Practitioner Helpline: For detailed/complex regulatory advice and particularly complex assessment enquiries - 0845 602 0583