www.gov.uk/studentfinance

2015/16

STUDENT FINANCE UPDATEHIGHER EDUCATION ADVISORS’ CONFERENCE 9 JULY 2014

KATY BARGESTUDENT FINANCE IAG TEAM

2015/16

SESSION CONTENTSi• Section 1 – SLC Updates

• Section 2 – Student Finance Package 2015/16

• Section 3 – Common Concerns

• Section 4 – Applications & Information

• Section 5 - Resources

2015/16

SLC UPDATES SECTION 1

2015/16

• Application cycle for new full time students opened 20 January

• As at 30 May just over 348,540 new applications received (396,730 returning students) . 98.7% online

• Over 1.15 million applications submitted in England for 2013/14

• 34% of applications submitted after the deadline last year (31 May 2013)

• 33% late applications received in the West Midlands region

• 2014 deadline 30 May for new students (27 June for returners)

1 PROCESSING UPDATEFULL TIME HIGHER EDUCATION

2015/16

• In 2013/14, 99.7% applications submitted on time processed by start of term – BIS target 99%

• 86.7% applications processed within 20 working days – BIS target 70%

• 97% applications processed within 30 working days – BIS target 95%

• 91.7% student applications made online – BIS target 91%

• 82.1% sponsor supporting evidence supplied online – BIS target 65%

• 91.7% calls answered (6.1m) – BIS target 90%

1 PROCESSING UPDATEFULL TIME HIGHER EDUCATION

J 2014 Annual Report available from: www.slc.co.uk/media/annual-report.aspx

2015/16

• The Student Loans Company has launched 030 phone numbers for all customer lines, replacing 0845 business-rate phone charges

• Effective from 1 April 2014

• Customer calls will cost no more than calls to geographic (01 and 02) numbers and will also count towards inclusive free call packages

on mobile phones

• The customer help line for Student Finance England is 0300 100 0607

• Practitioners’ help line has changed to 0300 100 0618

1 TELEPHONE UPDATESTUDENT LOANS COMPANY

2015/16

• The Student Loans Company is responsible for the studentfinance service in Wales for new students from 2014/15

• Returning students in 2014/15 will continue to apply to their LEA

• Responsible for both new and returning students from 2015/16

• Service launched 8 April. Deadline of 16 May for new students

• Dedicated Student Finance Advisers in place for Wales

• Resources available for teachers and advisers via www.studentfinancewales.co.uk/practitioners

1 STUDENT FINANCE WALESMODERNISATION

2015/16

• SFE part time application now open for 2014/15

• Online application available

• Quick guide available to download or order in hard copy

• Full guide and fact sheet also available to download via Practitioners’ website

1 APPLICATION UPDATEPART TIME HIGHER EDUCATION

2015/16

• 2014/15 application cycle launched mid April

• Online application available

• Eligible learners can apply at www.gov.uk/advancedlearningloans

• Dedicated resources suite available via the Practitioners’ website

1 APPLICATION UPDATEFURTHER EDUCATION – 24+ ADVANCED LEARNING LOAN

2015/16

THE STUDENT FINANCE PACKAGE

SECTION 2

2015/16

• Student Finance package for 2015/16 announced 13 March

• Regulations expected to come ‘into force’ end November 2014 subject to final Parliamentary approval

• Maximum tuition charges and tuition loans maintained at 2014/15 levels

• Maximum Maintenance Grants and Disabled Students’ Allowances also

maintained

• Maximum Maintenance Loans and grants for dependants (CCG, PLA, ADG) will be increased by inflation – 3.34%

Details of the changes can be found in the Policy section at: www.practitioners.slc.co.uk

FUNDING PACKAGE 2015/16OVERVIEW2

2015/16

• Universities and colleges* can charge new full-time students up to £9,000 per year (£6,750 part-time) for tuition fees

• Eligible students won’t have to pay any tuition fees up front

• A Tuition Fee Loan is available to cover the fee charged by a university or college**

• A Tuition Fee Loan doesn’t depend on household income

• SFE pay any Tuition Fee Loan directly to your university or college

• The loan is repayable, but only when your income is over £21,000

*Publicly funded institutions **Up to £6,000 available for approved courses at alternative providers

TUITION FEES & LOANSOVERVIEW2

2015/16

• HEFCE has taken on responsibility for processing applications on behalf of the Department for Business, Innovations and Skills

• Process of deciding whether or not students attending alternative/private institutions can access loans and grants from the SLC

• Providers must meet criteria of teaching quality, financial sustainability, management and governance, and course eligibility

• HEFCE website lists HE courses at alternative providers that have course designation:

• http://www.hefce.ac.uk/whatwedo/reg/desig/

DESIGNATION OF COURSESALTERNATIVE PROVIDERS2

2015/16

Full-Year Student*

65% Non Means Tested

35% Means Tested

Maximum Loan

Parental Home £2,967 £1,598 £4,565

Elsewhere £3,731 £2,009 £5,740

London £5,205 £2,804 £8,009

Overseas £4,433 £2,387 £6,820

MAINTENANCE LOAN2015/16 RATES

*Slightly lower rates of support apply to final year students

2

2015/16

• The Maintenance Grant doesn’t have to be repaid

• How much grant a student can get depends on their household income (100% means tested)

Household income thresholds maintained at 2014/2015 levels:

MAINTENANCE SUPPORT

Household Income:Up to £25,000

Household Income:Up to £42,620

Full Grant of £3,387

Partial Grant

2 MAINTENANCE GRANT2015/16 RATES

2015/16

Household Income

Maintenance Grant

Maintenance Loan

Total

£25,000 & under £3,387 £4,047 £7,434

£30,000 £2,441 £4,520 £6,961

£35,000 £1,494 £4,993 £6,487

£40,000 £547 £5,467 £6,014

£42,620 £50 £5,715 £5,765

£42,875 £0 £5,740 £5,740

£50,000 £0 £4,998 £4,998

£62,143 & over £0 £3,731 £3,731

COMBINED MAINTENANCE SUPPORTLIVING AWAY FROM HOME, OUTSIDE LONDON2

Students can get a quick estimate of their student finance entitlement using the calculator on gov.uk/studentfinance

2015/16

ADDITIONAL SUPPORT

• Have children or adults dependent on you

• Have a disability, long-term health condition, mental-health condition or specific learning difficulty

• Study an NHS or Social Work course

NHS courses include:nursing, midwifery, physiotherapy, speech and language therapy, dietetics, radiography , the later stages of medicine and dentistry

ADDITIONAL SUPPORTEXTRA SUPPORT MAY BE AVAILABLE IF YOU:

For more information on eligibility and applications for NHSsupport go to: www.nhsbsa.nhs.uk/students

2

2015/16

Changes announced 7 April which will affect new DSA students from 2015/16 onwards. DSA funding will no longer be provided for the following products and services:

• Standard specification computers, software, and associated peripherals – and higher spec due to course delivery

• Warranties and insurance associated with standard specification computers

• Non-specialist non-medical help (NMH) support. DSA will continue to fund the most specialist NMH (i.e. as outlined in the SLC NMH manual bands three and four, and specialist roles)

Further information available via www.practitioners.slc.co.uk in the ‘Policy Information’ section’

ADDITIONAL SUPPORTDISABLED STUDENTS’ ALLOWANCES -CHANGES2

2015/16

• NSP will cease as an undergraduate programme from 2015/16

• Refocused to support postgraduate students - £50m

• HE Providers expected to increase investment in widening access by

reaching £670 million in 2016/17

• From 2014/15, single budget for the Access to Learning Fund (ALF) and

the Student Opportunity allocation

• SO allocation may now also be used to support hardship – as well as widening access, improving retention & supporting disabled students

• “Simplify funding streams where they seek to deliver a similar objective”

BURSARIES & SCHOLARSHIPSINSTITUTIONAL SUPPORTOVERVIEW2

2015/16

Many universities and colleges offer financial support to their studentsthrough bursaries and scholarships

Bursaries:• Linked to personal circumstances and often, household income• Awards can include discounted tuition fees, accommodation or cash

Scholarships:• Linked to academic results or ability in an area such as sport or music• Can be subject specific and are limited in numbers

BURSARIES & SCHOLARSHIPSBURSARIES & SCHOLARSHIPS2

Check university websites and ask at open days for informationon bursaries, scholarships and how and when to apply!

2015/16

SECTION 3 COMMON CONCERNS

2015/16

i

! Debt from a student loan will be unmanageable!

i

The amount repayable will only increase with earnings as repayments are based onincome, not how much a student has borrowed.

COMMON CONCERNS3 COMMON CONCERNS

Any loan remaining 30 years from the April following graduation (or withdrawal if sooner) is cancelled.

2015/16

i Student loans are the sole responsibility of the student who takes them out.

i Student loans are unsecured government lending and are very different to commercial loans. They don’t go on credit files or show up on credit checks.

! Will student loans have an affect on an application for mortgages or other loans/credit in the future?

! If my child can’t afford to repay their loan then I’ll have to foot the bill!?!

COMMON CONCERNS3 COMMON QUESTIONS

2015/16

• The Financial Conduct Authority has confirmed in it’s Mortgage Market Review that student loan repayments have to be included as ‘committed expenditure’ in mortgage applications

• While this may effect how much a graduate can borrow, it does not mean they can’t or won’t be able to successfully secure a mortgage

Quote from the Council of Mortgage Lenders:

• ‘Student loan debt is treated in the same way as other types of debt, and regular repayments will reduce the disposable income, which is used in the income multiple/affordability calculation’

Further information can be found on the Council of Mortgage Lenders website – www.cml.org.uk

STUDENT LOAN REPAYMENTSIMPACT ON MORTGAGE APPLICATIONS3

2015/16

! If I move overseas will I still have to pay back my student loan?

i As they are outside the UK tax system, we work out monthly repayments via direct debit based upon the earnings threshold for their destination country.

i Students must notify SLC if they intend to move overseas for more than 3 months.

3 COMMON QUESTIONS

2015/16

! Will there be more support as I have more thanone child at university?

i If household income above £42,875 parental contribution figure will be equally split. Each child’s max loan will be reduced equally so parents not asked to contribute above this figure.

i £1,130 deduction from household income for any child totally or mainly financially dependent.

3 COMMON QUESTIONS

2015/16

! As a Muslim I am prevented from accessing HE because of the interest bearing loans.

i BIS recently publicised a consultation paperto see whether their possible solution would be acceptable to UK Muslims.

i Islamic Sharia law prohibits “Riba” – the paying and receiving of interest above inflation.

3 COMMON CONCERNS

2015/16

https://www.gov.uk/government/consultations/sharia-compliant-student-finance

2015/16

APPLICATIONS & INFORMATIONSECTION 4

2015/16

Each year thousands of students apply late for their finance andhave no way to pay for their course or halls, some even have to

drop out.....don’t let that be you!

• It will take at least six weeks to process your application so apply early to make sure your student finance is ready for the start of your course

• Apply online at gov.uk/studentfinance*

• You don’t need a confirmed place at university or college to apply for student finance

• Apply with your first choice, you can change details later if you need to

STUDENT FINANCE APPLICATIONS KEY MESSAGES – APPLY EARLY4

*When setting up your student finance account, be sure to keepa note of your password and other log-in information!

2015/16

www.gov.uk/studentfinance

GOV.UKFOR MORE INFORMATION & TO APPLY4

2015/16

www.thestudentroom.co.uk/studentfinance

www.youtube.com/SFEFILM

www.twitter.com/sf_england

www.facebook.com/SFEngland

SFE ONLINEFOR FURTHER INFORMATION & RESOURCES4

2015/16

RESOURCESSECTION 5

2015/16

5 PRACTITIONER RESOURCESDEDICATED WEBSITE

www.practitioners.slc.co.uk

2015/16

Access and download our wide range ofIAG resources, including:

• Factsheets and Guides

• PowerPoint Presentations

• Videos and Lesson Plans

• Policy Documents and Updates

PRACTITIONER RESOURCESDEDICATED WEBSITE5

2015/16

5 PRACTITIONER RESOURCES2014/15 APPLICATION DEMO

www.practitioners.slc.co.uk

www.practitioners.slc.co.uk

2015/16

• The BIS funded Student Finance Tour has been re-commissioned to support 2015/16 entry

• Presentations will focus on the cost of studying and the financial support available for students starting a course from September 2015

• Focus on Year 12 and Year 13

• Initial Parent Tour running 30 June – 18 July

• Student and Parent Tour will then run 8 September - 12 December

• 0151 350 1532 or email them on sft@events.com

THE STUDENT FINANCE TOURSTUDENT AND PARENT TALKS 5

2015/16

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:

http://www.practitioners.slc.co.uk/regional-support.aspx

PRACTITIONER RESOURCESSUPPORT FOR PRACTITIONERS

Practitioner Helpline: For detailed/complex regulatory advice and particularly complex assessment enquiries - 0300 100 0618

5

2015/16

PRACTTIONER RESOURCESREGIONAL SUPPORT PAGES5

2015/16

QUESTIONS & COMMENTS?