£ 12_13 student finance. 12_13 content how it all works applying repaying resources
TRANSCRIPT
![Page 1: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/1.jpg)
£
12_1
3
Student Finance
![Page 2: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/2.jpg)
12_1
3
Content
• How it all works
• Applying
• Repaying
• Resources
![Page 3: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/3.jpg)
12_1
3
A word about fees
• Up to £9,000 per year…
• …but tripling fees ≠ tripling costs: the real cost is in repayment
• Nothing has to be paid upfront
• Most students won’t repay the full amount borrowed
![Page 4: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/4.jpg)
12_1
3
Summary of changes for 2013
• Full and part-time fees remain £9,000 max
• Living cost loans remain fixed at 2012 rates
• Household income thresholds remain fixed at 2012 rates
![Page 5: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/5.jpg)
12_1
3
What support could I get?
![Page 6: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/6.jpg)
12_1
3
Tuition Fee Loan
• Loan for cost of fees ( up to £9,000 per year in 2013)
• Available for full-time and part-time study
• Repay only once graduated and once earning £21k
![Page 7: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/7.jpg)
12_1
3
What support could I get?
![Page 8: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/8.jpg)
12_1
3
Living Cost Support
• Money for living costs – bills, food, rent
• Amount depends on income
• May receive a grant (non-repayable) – earnings under £42,600
• Repay loans only once graduated and once earning £21,000
![Page 9: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/9.jpg)
12_1
3
Household Income
Maintenance Grant
Maintenance Loan
Total
£25,000 & under £3,354 £3,823 £7,177
£30,000 £2,416 £4,292 £6,708£35,000 £1,478 £4,761 £6,239£40,000 £540 £5,230 £5,770£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
£62,125 & over £0 £3,575 £3,575
Student living away from home outside London 2013
Combined Support for Living Costs
![Page 10: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/10.jpg)
12_1
3
What support could I get?
![Page 11: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/11.jpg)
12_1
3
Bursaries:• May link to National Scholarship Programme• Depend on circumstances• Vary by institution
Scholarships:• Academic, sport or music• Subject specific or generic• Vary by institution
Scholarships & Bursaries
![Page 12: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/12.jpg)
12_1
3
May receive extra money or support if you:
• Have children or adults dependent on you
• Have a disability or learning difficulty
• Are a student parent
Additional Support
![Page 13: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/13.jpg)
£
12_1
3
Applying
![Page 14: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/14.jpg)
12_1
3
www.direct.gov.uk/studentfinance
![Page 16: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/16.jpg)
12_1
3
Applications
• Apply early, apply online
• Consent to share: helps with scholarship/bursary provision
• Only supply evidence if you are asked for it.
• Check online account before calling to save time
![Page 17: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/17.jpg)
12_1
3
Applications cont.
• No need to wait for a confirmed place
• If unsure of fee amount, select ‘maximum’
• Process in place for students with incorrect fee loan
![Page 18: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/18.jpg)
£
12_1
3
Resources
![Page 19: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/19.jpg)
12_1
3
www.facebook.com/SFEngland
www.twitter.com/SF_England
• Daily surgeries• Announcements on key dates, turnaround times etc.• Links to information and guidance materials
![Page 21: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/21.jpg)
12_1
3
www.thestudentroom.co.uk/studentfinance
Sifter widget
![Page 22: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/22.jpg)
12_1
3
![Page 23: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/23.jpg)
12_1
3
![Page 24: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/24.jpg)
12_1
3
![Page 25: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/25.jpg)
12_1
3
![Page 26: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/26.jpg)
£
12_1
3
Explaining
Repayment
www.studentloanrepayment.co.uk
![Page 27: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/27.jpg)
12_1
312_1
3
Student Loan Repayment
• You are eligible for repayment:April after you leave/graduate if full-time, orApril 4 years after starting if part-time
• No repayments until earning over £21,000 pa gross
• Repayments via HMRC @ 9% of earnings above £21,000
• No early repayment charge
• Any outstanding debt written off after 30 years
![Page 28: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/28.jpg)
12_1
312_1
3
Student Loan Repayment
Income each year before tax Approximate monthly repayment
Old system New system
£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 £143
![Page 29: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/29.jpg)
12_1
3
Interest Rates
![Page 30: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/30.jpg)
Interest RatesICR Historical Interest Rates
*2.56 is the median – the interest rate was adjusted down four times in 2008/09
![Page 31: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/31.jpg)
12_1
312_1
3
Additional Info
• A student loan is 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
• Students may find they are better off…
![Page 32: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/32.jpg)
12_1
312_1
3
Better off with higher fees?Example 1 (old system):
• Old system student borrows £21,000 at end of studies (£3,000 per year fees loan x 3 + £4,000 living cost loan per year x 3)
• Plus interest owes approx £23,000 after studies
• Starting salary of £24,000• Total repayments = £35,500 (repaying full
balance in approx 24.5 years)
Assumptions: 2% salary growth, 3% average inflation/interest
![Page 33: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/33.jpg)
12_1
312_1
3
Better off with higher fees?Example 2 (new system):
• New system student owes £40,000 at end of studies (£9,000 per year fees loan x 3 + £4,300 per year living cost loan x 3)
• Plus interest owes approx £45,000 after studies
• Starting salary of £24,000• Total repayments = £22,000 (balance
written off after 30 years)
Assumptions: 2% salary growth, 3% average inflation/interest
![Page 34: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/34.jpg)
12_1
312_1
3
Student Loan Repayment
Income each year before tax Approximate monthly repayment
Old system New system
£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 £143
![Page 35: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/35.jpg)
12_1
312_1
3
Order here
![Page 36: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources](https://reader036.vdocuments.site/reader036/viewer/2022081602/5513eeaf5503466f748b5af9/html5/thumbnails/36.jpg)
12_1
3
0845 300 5090
www.direct.gov.uk/studentfinance
www.thestudentroom.co.uk
facebook.com/SFEngland
@sf_england