Student Finance

2010/11

Investment for the future

• Primarily (but not exclusively) an online system

“An investment where the return lasts a lifetime.”

Professor Tim Wilson, Vice-Chancellor

The current situation

• Student Finance Direct has become Student Finance England:www.studentfinanceengland.co.uk

• Local Authority Application System has become National Centralised Application System

• New Customer Service Team in Darlington

• Primarily (but not exclusively) an online system• Primarily (but not exclusively) an online system

Tuition Fees

• No up front fees for ALL full-time undergraduate courses

• Variable tuition fees between £0 and £3,290 for new students starting in September 2010, almost all Universities are charging £3,290

(a rise of 2.04% from 09/10)

• Primarily (but not exclusively) an online system

Financial Support

• Tuition Fees Loan Up to £3,290

• Maintenance Loan Up to £4,950 (outside London)

• Maintenance Grant Up to £2,906

• Bursaries Varies across institutions

• Scholarships Varies across institutions

• Bursaries Varies across institutions

• Scholarships Varies across institutions

Tuition Fees Loan

• Home and EU students eligible for a non income assessed loan to cover tuition fee costs

• Paid directly to the university on behalf of the student

“The rate of interest makes no difference to borrowers’ monthly repayments. Borrowers repay 9% of their earnings over the income threshold of £15,000.

Whatever the rate of interest is, that monthly repayment will not change”

• Primarily (but not exclusively) an online system

Maintenance Loans

• 72% - not dependent on household income

• 28% - dependent on household income

• 0% interest rate from 1 Sept 09

• Paid to students in 3 instalments

• Paid directly into student bank account

Maintenance Loan

Living Loans (2010/11) Maximum Minimum

Living at Home £3,838 £2,763

Living away from home outside London

£4,950 £3,564

Living away from home in London

£6,928 £4,988

Means Testing

For most school leavers ‘household income’ is based on:

• Gross taxable income of the student excluding any earnings during university term time and holidays;

• PLUS Gross taxable income of parent/partners/step parents;

• LESS deductions for payments into pension funds and £1,130 for each other dependent child in the household.

Maintenance Grant

Household income Grant Available

£25,000 or less Maximum £2,906

£30,000 - £50,020 £1,906 - £50

£50,020 or more No Grant

• Maximum £2,906 (maintained at 2009/10 level)

• Dependent on household income

Loan repayments

• April after student leaves the course• Earnings over £15,000 pa• 9% of income above £15,000• Any outstanding student loan balance written off

after 25 years

Repayment Example A

Student who has left course and earning £18,000

(£18,000 - £15,000 = £3000)

Will pay 9% of 3000

Yearly = £270Monthly = £22.50Weekly = £5.19

Repayment Example B

Student who has left course and earning £24,000

(£24,000 - £15,000 = £3000)

Will pay 9% of 9000

Yearly = £810Monthly = £67.50Weekly = £15.58

Bursaries

E.g. University of Hertfordshire:

• £1000 bursary available for full time undergraduate students in receipt of the full means tested maintenance grant

• Reduced to £500 from 2011/12 entry

• Non-repayable amount

• Paid directly by the University

• Not linked to any student loan from the government or scholarship

• Not available for degrees in nursing and midwifery, physiotherapy and radiography, social work and PGCE students

Scholarships

E.g. University of Hertfordshire:

• A range of scholarships from the University of Hertfordshire and commercial and professional partners

• Does not affect any grant, loan or other income

• Non-repayable

Examples:

– Science, Technology, Engineering and Maths (STEM) Scholarship– Chancellor’s Gifted and Talented Scholarship– Chancellor’s Entrepreneurial Excellence Scholarship

Scholarships

Science, Technology, Engineering and Maths (STEM):

• £1,000 in 1st year, • £500 in 2nd year, • £500 in final year

• Given automatically* to students with 280 points*some courses may not be eligible

Scholarships

Chancellor’s Gifted and Talented• Awarded to 40 students each year

• Minimum of 360 UCAS points

• Awarded £2,000 per year

• Work as a student ambassador

Application form : go.herts.ac.uk/chancellorsscholarships

Deadline 9 April 2010

Scholarships

Chancellor’s Entrepreneurial Scholarship• Awarded to 20 students each year

• Minimum of 360 UCAS points & a business idea

• Awarded £3,000 per year plus business guidance and mentor

• Work as a student ambassador

Application form : go.herts.ac.uk/chancellorsscholarships

Deadline 9 April 2010

Additional support

• Additional Grants Disabled Student Allowance Adult Dependants Grant Care Leavers’ Grant Company Support

• Discretionary Support Access to Learning Fund (or equivalent)

How to apply

• Unlikely that the application cycle for Student Finance England will open before Nov 2009

• Apply Online – you will be prompted through UCAS

• Apply as early as possible!

• Will require parents’ income details

Income

• Maintenance Loan

• Maintenance Grant

• Parental Contributions

• Gap Year Earnings

• Part Time Work

• Scholarships / Sponsorships

• Savings from Holiday Work

• Placement £10,000 – £15,000

Expenditure

• Tuition Fee

• Rent

• Household Bills

• TV Licence

• Telephone

• Food

• Household Items

• Clothes

• Leisure

• Insurance

• Car Expenses

• Travel

• Books/Stationery

• Toiletries

Student bank accounts

• Shop around

• What’s on campus/nearest?

• What freebies do you get?

• How much interest free overdraft?

• How long does it continue for?

• What is graduate account do they offer?

Pitfalls

• Be aware of interest rates on credit cards and other loans

• Interest rates can be up to 40%

Managing your money

• Always allow extra money for freshers’ week!

• Get a student bank account

• Create a budget and stick to it

• Plan ahead – start saving NOW

• If you are struggling – talk to someone – your parents, the bank, student advisors

Thank you

Student Finance 2010/11