Money Matters!Funding for students starting in
2012
Kate WhiteAdvice and Welfare Service
Student Services Department
• Tuition fees
• Student loans
• Grants
• Terms and conditions of the student loans
Tuition Fees for 2012
• Tuition fees for full-time degree courses from £6,000 - £9,000 per year for EU and UK students
• UWE will charge £9,000 tuition fees
Student Loans Fee loan • No up-front payment of fees required.• Fee loans available to cover the fees being
charged.
Maintenance loan• Up to £5,500 if living away from home and
studying outside of London.• Some of it will depend on your family income
Money you don’t pay back!
Maintenance Grant £3,250
• Non repayable
• depends on household income
• Students from families with incomes up to £42,000 will be entitled to a partial grant.
Household income
Maintenance grant
Living cost loan
Total living cost
support
£25,000 or less £3,250 £3,875 £7,125
£30,000 £2,341 £4,330 £6,671
£40,000 £523 £5,239 £5,762
£50,000 £0 £4,788 £4,788
£60,000 £0 £3,788 £3,788
Over £62,500 £0 £3,575 £3,575
Part-time studyProposed: fees set as % of full-time fee
Full time fees £9k
Part-time study 50% of FT course = £4,500
Fee loan (non income-assessed)
No funding for living or course costs
Disabled Students’ Allowances
– not dependant on family income
– do not have to be repaid.
– available help if you incur extra costs because of a long-term health conditions, mental health condition or specific learning difficulty such as dyslexia.
– paid on top of the standard student finance package.
UWE Bursary 2012
– New for 2012 to help first-year English students from low income families
– Part of the National Scholarship Programme
– 514 Bursaries of £3,000 in the first year– 500 Bursaries of £1,000 in the first year
– Priority given to Access students, disabled students, Care Leavers, Refugees and very low income students
– Progression bursaries in subsequent years of study
Student loans
Level of debt
Interest rate
repayments
Student loan debt - 3 year degree
£9k fees
Fee and maintenance loan = £38,625
Part-time study with £9k fees
Fee loan = £27,000
Interest rates
• Retail price index (RPI) + 3% will be charged
» while you study (full-time)
» for the first 3 years of study (part-time)
Student loan debt - 3 year degree
£9k fees
Fee and maintenance loan = £38,625
+ Interest £3,476
Part-time study with £9k fees
Fee loan = £27,000
+ Interest £600 after 3 years of 50% study
Liability to repay and the repayment threshold
• Liability to repay starts the April after you graduate (April 2016)
• Liability for repayment as a part-time student is the April after 3 years of study
• Student has to earn more than £21,000 to repay the loans
• The threshold will increase by the rate of inflation from April 2017 for all students
Repaying the loans• Repayments are 9% of earnings above
£21,000 regardless of the outstanding balance
• Deducted by Revenue and Customs
• Any debt is wiped after 30 years of liability to repay
Gross Taxable Income
Monthly Repayments Annual repayments
£26,000 £37.50 £450
£31,000 £75 £900
£36,000 £112.50 £1,350
£41,000 £150 £1,800
£46,000 £187.50 £2,250
Interest rates once liable to repay
• Income under £21,000 = Retail Price Index
• Income between £21,000 - £41,000
RPI + 1-3%
• Income over £41,000 RPI + 3%
Gross Taxable Income
Monthly Repayments
Annual repayments
Interest rate
RPI = 1.5%
Estimatedannual
interest on £38,625
£26,000 £37.50 £450 RPI + 0.75% £869
£31,000 £75 £900 RPI + 1.5% £1,158
£36,000 £112.50 £1,350 RPI + 2.25% £1,448
£41,000 £150 £1,800 RPI + 3% £1,738
£46,000 £187.50 £2,250 RPI + 3% £1,738
Other Issues
• Early repayment penalties
• Mortgages and credit rating
• Financial Capability
Key messages• You don’t need to have cash to go to uni
• Earn under £21k and you’ll never repay
• After 30 years, any remaining debt is wiped
• Monthly repayments are the same regardless of the amount owed
• Student loans do not go on credit files or affect you getting a mortgage
• Many people will not pay it all back
Making the decision about University
• Career
• Money
• Delaying studies
• Part-time study
More information
• UWE website – www.uwe.ac.uk
• Direct.gov.uk - www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/index.htm
• Martin Lewis http://www.moneysavingexpert.com/
Money Matters!Funding for students starting in
2012
Kate WhiteAdvice and Welfare Service
Student Services Department
