A Guide to Student Finance – 2014/15Catherine McNicholl, Outreach Officer

Aim:

At the end of this session, you will have a better understanding of the funding options available to enter higher education (except courses in Nursing, Physiotherapy and Dental Hygiene and Therapy)

Main costs Tuition fees Living expenses

Financial support

Non-repayable Grants Scholarships Bursaries

Repayable with interest Loans

Student Finance

Tuition Fees – UK/EU

The tuition fee for all our full-time undergraduate courses is £9,0009,000Living costs

Accommodation/rent Travel Study materials Food/clothes/socialising etc

How much does it cost to attend University

How can you afford it?

Tuition Fee Loan

Loan to pay for your University fees

Living Cost Loan

Loan to pay for living costs

Living Cost Grant

Free money that you don’t have to pay

back

Bursaries & Scholarships

Help from universities – free money

students / parents DO NOT have to pay any fees up front

Tuition Fee Loan

Universities can charge up to a maximum of £9000 per year for a full time degree programme. The

Tuition Fee Loan is NOT means tested

Student Finance England

University

Student

How can I fund my living expenses?

Loans are available from the government (Student Finance England)

Maintenance loan (UK only)

65% is non-means tested

The amount you can borrow is determined by your household income and where you choose to study

The loan is paid directly to you in three instalments Up to £5,555 if living away from home & outside London Up to £4,418 if living at home

Other ways to manage your living costs

Part-time job Supplement your income and help you to gain valuable work experience

No more than 15 hours a week during term time

You need to apply for student finance before you start your course

Living at home

(£58,195)

Living away from home(£62,125)

Living in London

(£69,745)

Maximum per year

£4,418 £5,555 £7,751

65% guaranteed

£2,871 £3,610 £5,038

35% means tested

£1,547 £1,945 £2,713

Living Cost Loan 2014-15

Is there any additional support?There are a number of non-repayable allowances available to students from lower-income backgrounds to help with their living expenses

Grants available from the government (Student Finance England)

Maintenance grant(UK only)

The amount you receive is determined by your household income

The grant is paid directly to you in three instalments £3,387 for household incomes up to £25,000 Between £50 and £3,354 for household incomes above

£25,001 up to £42,620

Extra help for those with special circumstances

If you have children or adult dependants, a disability, mental health condition or specific learning difficulty there may be additional support available.

There are also NHS-funded bursaries available to students studying Medicine or Dentistry (and potentially Social Work) in the latter years of their degree.

Full-time student – household income

Grant for courses from September 2014

£25,000 or less £3,387

£30,000 £2,441

£35,000 £1,494

£40,000 £547

£42,620 £50

Above £42,620 No grant

The University offers a range of awards to undergraduates depending upon your income background, accommodation choice, academic performance and course.

Extra help from the University

Chamberlain Awards

Household income Value of award

Less than £25,000 £2,000

Between £25,001 and £36,000 £1,000

Chamberlain Awards are paid as a cash bursary in two instalments. If you are registered on a teacher training or NHS funded programme; progressing from a foundation degree; transferring from another institution or studying for a 2nd degree, you will not qualify for a Chamberlain Award. Graduate entry medical students may qualify in year 1 only Medical and dental students on standard programmes may qualify in years 1 – 4 only Social work students may qualify in year 1 only

Subject-based scholarships

Music scholarships

Sport scholarships

Lloyds Scholars programme

Other bursaries and scholarships

When and how to apply for loans and grants

You should apply as soon as you've applied for your course

Apply online at www.direct.gov.uk/studentfinance

Student Finance England (or relevant SLC agency) will confirm if you qualify for a loan or grant once you have completed your application

Applying for financial support

Interest is charged at the rate of inflation plus 3% from the date the loan is paid out until the April after you have left University

Interest rates

From this date you will be charged:

rate of inflation

(if earning up to £21K)

rate of inflation plus up to 3%

(if earning between £21,001 and £41,000)

rate of inflation plus 3%

(if earning above £41,000)

Loan repayment

You will only start to repay your student loans (tuition and living costs) in the April after you have left University and are earning more than £21,000 per year

Loans are repaid at a rate of 9% for incomes above this threshold

If your income drops below £21K repayments are suspended

Repayments are calculated on a sliding scale and will be deducted automatically from your pay packet

All outstanding amounts are written off after 30 years

No charge is made for an early repayment

Repayment ExamplesSALARY Amount of salary from

which 9% will be deducted

Monthly Repayment

£25,000 £4,000 £30.00

£30,000 £9,000 £67.50

£35,000 £14,000 £105.00

£40,000 £19,000 £142.50

£45,000 £24,000 £180.00

£50,000 £29,000 £217.50

£55,000 £34,000 £255.00

£60,000 £39,000 £292.50

What our students say …

“Parking on campus

was a cost I hadn’t

budgeted for. Also I

didn’t realise how

expensive TV

Licenses were!”

“If you're doing an art and design course, costs can quickly build up. In my case, we had to pay a £75 school levy [for materials] and during my first week we were told that we should buy a £50 tool kit for the workshops. Adding the cost of printing, my extra expenses reached about £450 in my first year”

What our students say …

“Don't buy what you don't need. Also remember that you're only in one room for 9 months of the year and anything you put in the room has to be moved out again at the end of the academic year. The more you buy now, the more hassle it is at the end shifting it back home.”

“Only eat out when

there are deals on;

buy one get one

free or 20% off for

students.”

“Nights-out are a

money-sink. Best

way to cut the costs

but still enjoy the fun

that they bring is to

throw house

parties!”

What our students say … “At the end of first year, it

was quite a shock to find out how much I had

spent throughout the year on living expenses, something

you don't really appreciate until you leave home!”

“Temptation is always round the corner but a good way to catalogue

your spending is by keeping receipts and writing down your overall weekly spending so later on you'll know what

to rule out and what to go for.”

Key points and Contacts

Education is still free at the point of entry

Graduates (not students) repay loans

Repayment is based on earnings not the amount of loan taken

After 30 years the debt is written off

www.birmingham.ac.uk/ugfunding

https://www.gov.uk/student-finance

www.studentfinancecalc.com

Quiz-based interactive game

Helps to improve your knowledge of finance at University and beyond

Play the game at

www.birmingham.ac.uk/cashclever