Student Funding: Update information for Heriot-Watt staff.


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  • Going to be looking at the situations for UNDERGRADUATE students that reside in Scotland, rest of the UK and Europe. International students are whole different kettle of fish!
  • Very frustrating for Scottish HEI’s as there is a lot of IGNORANCE among A-Level students -sometimes felt that UCAS, Connexions etc are not providing info to pupils.
  • Let’s look at the situation for Scottish students – this is probably the majority of people that we talk to – consider 17/18 year olds at school across Scotland. If they decide to stay in Scotland, they wont pay fees, providing they are domiciled. This is a massive bug bear and the definitions of domiciled are VAST! Generally though, if an applicant has lived in Scotland for all or most of their life, prior to their course commencing (SAAS define this as the 1 st August) they will be Scottish domiciled and entitled to getting fees paid and Scottish funding. If for, example, an applicant has moved to Scotland as a result of a parent's job, then they will also be classed as Scottish domiciled as they are living in Scotland as a result of a factor that is NOT Higher Education. Someone who moves to Scotland BECAUSE they are abbot to start tudying at Heriot-Watt, does NOT make them Scottish domiciled. Students MUST apply to SAAS to have their fees paid, is not automatically done. A lot of students forget this! All applications are done on line now and there is a phone help line set up, based here in Edinburgh.
  • This always causes issues!! Due to European law – Students in the EU are entitled to the SAME tuition as home students in that country – i.e.. Scotland (NOT UK) so this means that EU students are entitled to free tuition IF they study and graduate in Scotland. We always get asked by English enquirers why this is as England is in the EU! Different governance over education and we have to abide by what the politicians agree. It doesn't mean that EU applicants are entitled to the same funding package as Scottish applicants-they must get funding from home country/self fund. However, if a European student has been in the UK for 3 YEARS, they may be entitled to the same funding. The 3 year rule has very little to do with domestic, UG students so shouldn’t be confused.
  • Non Scottish and UK EU students in Scotland, must pay fees to study in Scotland. These increase every year and are sitting at £1735 at the moment. It used to be that students had to pay these fees upfront to the Scottish institution, but now they can be deferred if the students gets a NON-MEANS TESTED loan to cover them – the LEA will pay on their behalf and the student will pay the loan back after they graduate. Some students opt NOT to take this loan and therefore have to pay the fees upfront every year. Is so important that we are not telling E, W and N.I students that they don’t pay fees because of the EU rule.
  • The majority of E, W and N.I HEI’s are charging top up fees that are set until 2010 and they will be able to charge what they like. These fees are variable and different courses can cost different amounts, depending on popularity. Scottish, European, English, Welsh and N.Irish students have to pay these fees and help for payment and funding comes from the students HOME funding body (so, for Scottish students, SAAS would provide all funding) It means that it is a lot more expensive for Scottish and non uk EU students to study outside of Scotland and is a lot cheaper for E and N.Irish students to study here. ** Welsh students get bursaries to pay their fees IF they stay in Wales so that is why the majority of them stay in Wales to study ** Scottish students studying outside of Scotland will get a LOAN from SAAS to help them pay the fees, this loan is paid back in the normal way (see later)
  • Always a catch!!! Once fees were abolished, the Labour/Lib Dem coalition needed to reach a decision on how to generate income. Labour wanted to charge fees, Lib dem didn’t – the GE was the compromise. When the GE was established in 2001, it was set at £2000 – in my opinion, this number was not picked from nowhere. Fees at that time were £1000 and EVETONE had to pay them (even Scottish students) they were means tested though so 1/3 paid the full £1000, 1/3 paid about half and 1/3 paid nothing so the average was £500 per student. Over 4 years, this was £2000…….. The GE is not a fee – it is money that is generated to help those from lower income families to go to University (will highlight how later) Remember – only those who didn’t pay tuition fees pay the GE. Are some exceptions.
  • Just quickly – student loans are a major part of most students application to Uni and, like fees, is an ever changing subject! All funding bodies provide a means testing process of determining funding available to students. Those from very wealthy families sometimes opt for the non-means tested funding to ensure they get something. Not like the old days of grants – students are expected to fund themselves in many different ways, a lot of it dependent on how much their parents earn.
  • Is it fair??? Those from lower income families are in more debt when they finish Uni, thus fuelling the vicious circle of debt in certain groups of society. Although could be argues that those from wealthier families are paying the GE to support those who couldn’t have gone to Uni without the bursary.
  • The rate at which the loan is paid back depends on how much a person EARNS, not how much they BORROWED! So, if salary falls, redundancy etc then loan repayments fall also. Always important to pint out to people that HE is an INVESTMENT and yes, means debt for MOST people, but is worth it
  • Was thought that loads of students would come to Scotland to escape the high top up fees, but the consensus among a lot of young people is that Scotland is too far to come up to – I get it a lot when working English events! 2.Is important to note that after 2010 and the cap is lifted on top up fess, non-Scottish HEI’s will have a lot more funds to “play with” in terms of upgrading facilities and most importantly, salaries. This could see staff moving South for better paid jobs which would be detrimental to Scottish HEI’s. 3.Alex Salmond promised to scrap the GE as part of his manifesto – this hasn’t quite happened yet but likely will as Lib Dem are in favour of this. As I’ve shown, the GE funds bursaries, so what will happen to them? Could be back to charging full loans/parental support to ALL students, means that those from lower income families will have to borrow even more.
  • Student Funding: Update information for Heriot-Watt staff.

    1. 1. Student Funding: Update information for Heriot-Watt staff . Roz McLoughlin Education Liaison Officer
    2. 2. Topics To Cover….. <ul><li>Tuition Fees: </li></ul><ul><ul><li>Situation for Scottish Undergraduate Students </li></ul></ul><ul><ul><li>Situation for non-UK EU Undergraduate Students </li></ul></ul><ul><ul><li>Situation for English, Welsh and Northern Irish Undergraduate Students </li></ul></ul><ul><ul><li>What’s happening outside of Scotland </li></ul></ul><ul><li>Student Loans </li></ul><ul><li>The Future? </li></ul><ul><li>Questions </li></ul>
    3. 3. Fees…..Funding….Complete Can O’ Worms….? Isn’t it free in Scotland?? Scottish Students don’t pay do they? I’m half Scottish, do I get a discount? Where’s Scotland???? (honest – we get this!!!) What’s a Graduate Endowment? How much will it cost in Scotland?
    4. 4. Tuition Fees :Scottish Students in Scotland <ul><li>Scottish domiciled students DO NOT pay tuition fees IF they stay in Scotland to study </li></ul><ul><ul><li>Domiciled : ‘habitual and normal residence in one place ’. Basically means that the applicant lives in Scotland year after year by choice throughout a set period, apart from temporary or occasional absences such as holidays. Living here totally or mainly for the purpose of receiving full-time education does not count as being ordinarily resident. </li></ul></ul><ul><ul><li>However…..if an applicant moves from England/Wales/N.Ireland, even a month before the course commences, they will be Scottish domiciled, as SAAS will look at permanent address. </li></ul></ul><ul><li>Students must apply to SAAS each and every academic year to have these fees paid. </li></ul>
    5. 5. Tuition fees: Non-UK EU Students in Scotland <ul><li>Non-UK EU domiciled students are also entitled to free tuition due to the fact that (under European law) all EU students are entitled to the same rights to education as home students. </li></ul><ul><ul><li>Raises the English, Welsh and Northern Irish debate……we get it all the time! Is all very political. </li></ul></ul><ul><li>The infamous 3 year rule – this only applies to non-UK EU students in relation to funding, not fees! </li></ul>
    6. 6. Tuition Fees: English, Welsh and Northern Irish Students in Scotland <ul><li>Non-Scottish, UK students have to pay fees to study in Scotland: </li></ul><ul><ul><li>£1735 per year </li></ul></ul><ul><ul><li>£2760 for medicine </li></ul></ul><ul><li>These fees can now be deferred until after graduation IF a loan is taken out to pay the fees. </li></ul><ul><li>Students must apply to their home support bodies to get fees paid for them. </li></ul><ul><ul><li>England: Local Education Authority </li></ul></ul><ul><ul><li>Wales: Local Education Authority </li></ul></ul><ul><ul><li>Northern Ireland: Education and Library Board </li></ul></ul><ul><li>IF no loan is taken – students will have to pay their fees upfront to avoid taking a “fee student loan”. </li></ul><ul><li>Is REALLY important to remember that English, Welsh and Northern Irish domiciled students DO have to pay fees in Scotland! (Don’t confuse this with the EU rule.) </li></ul>
    7. 7. Tuition Fees: Outside of Scotland <ul><li>All English, Welsh and Northern Irish HEI’s can charge variable “top-up fees” - these can be anything up to £3070 per year of study. </li></ul><ul><li>98% of HEI’s are charging the full fee. </li></ul><ul><li>ALL students, regardless of domicile, must pay these top up fees. </li></ul><ul><li>Scottish students outside Scotland can apply to SAAS for a non-means tested loan to cover the cost of their fees </li></ul><ul><li>What this means…… </li></ul><ul><ul><li>£3070 per year more expensive for Scottish & non-UK EU students to study outside Scotland. </li></ul></ul><ul><ul><li>£1335 cheaper per year for English and Northern Irish students to study in Scotland. </li></ul></ul>
    8. 8. The Catch……… <ul><li>&quot;in recognition of the higher education benefits they have received” (Scottish Executive), Scottish graduates are required to pay a Graduate Endowment . ( Education Act 2001 ) </li></ul><ul><li>£ 2289 for 2006-2007 entry (annually increases with inflation) </li></ul><ul><ul><li>Not paid until the April after graduation. </li></ul></ul><ul><ul><li>Can be paid in a lump sum and/or by taking out a student loan to cover it. </li></ul></ul><ul><ul><li>If a loan is taken out, does not start getting repaid until the graduate is earning over £15,000. </li></ul></ul><ul><li>The graduate endowment fund aims to help those from lower income backgrounds by being redistributed in the form of bursaries. </li></ul><ul><li>Only applies to Scottish and non-UK EU domiciled graduates. </li></ul><ul><ul><li>Exemptions: Those who have taken less than 3 years to complete their degree, mature students, lone parents and/or disabled graduates, those who have studied a course in one of the Allied Health Professions, a nursing diploma or degree, or an HNC/HND are exempt from paying the graduate endowment. </li></ul></ul>
    9. 9. Student Loans…Hands up if you have/had one?! <ul><li>A means-tested student loan scheme is open to all UK , Undergraduate, full-time students to help them meet their living costs. </li></ul><ul><li>Students must apply each and every academic year to their home funding body: </li></ul><ul><ul><li>SAAS - Scottish Students </li></ul></ul><ul><ul><li>Local Education Authority (LEA) - England & Wales </li></ul></ul><ul><ul><li>Education and Library Boards - Northern Ireland </li></ul></ul><ul><li>Students are expected to fund themselves through a combination of ways: student loans, bursaries, parental support and part-time/holiday work. </li></ul>
    10. 10. Support Package for SAAS Students (per academic year) <ul><li>Household Parental Bursary Loan Total </li></ul><ul><li>Income Support Support </li></ul><ul><li>(Gross) </li></ul><ul><li>£17,000 - £2,510 £2,465 £4,975 </li></ul><ul><li>£20,000 - £2,222 £2,320 £4,542 </li></ul><ul><li>£30,000 £813 £468 £3,119 £4,400 </li></ul><ul><li>£40,000 £1,924 - £2,476 £4,400 </li></ul><ul><li>£55,000 £3,530 - £870 £4,400 </li></ul><ul><li>Please note that an additional loan of up to £575 is available to young </li></ul><ul><li>students from families with an income below £20,225 </li></ul><ul><li>Students do not have to take their full entitlement if they feel they don’t need it. </li></ul>
    11. 11. Paying back the Student Loan <ul><li>The SLC works with Inland Revenue to collect 9% of income over £15,000. </li></ul><ul><li>Repayments only start in the April after graduation. </li></ul><ul><li>Interest is linked to inflation and is in line with the Retail Price Index </li></ul><ul><li>Annual Income over Annual Monthly </li></ul><ul><li>Income £15,000 Repayments Repayments </li></ul><ul><li>£15,000 NIL NIL NIL </li></ul><ul><li>£17,000 £2,000 £180 £15.00 </li></ul><ul><li>£20,000 £5,000 £450 £37.50 </li></ul><ul><li>£25,000 £10,000 £900 £75.00 </li></ul><ul><li>£30,000 £15,000 £1350 £112.50 </li></ul>
    12. 12. The Future…… <ul><li>“ Fee Refugees” – Doesn’t appear to have happened yet on the scale that was predicted, many English students regard Scotland as “too far”……. </li></ul><ul><li>University facilities and resources – in comparison Scottish HEI’s may not have, or appear to have, as good staff and student facilities due to less income. </li></ul><ul><li>The SNP – keen to abolish the Graduate Endowment but this has strong implications for the bursaries……back to square one and everyone pays fees in Scotland? </li></ul>
    13. 13. In Summary…….. <ul><li>Scottish Domiciled (and non-UK EU) Students do NOT pay fees to study at Heriot-Watt BUT….. </li></ul><ul><ul><li>… they MAY pay a Graduate Endowment in the April after graduation. </li></ul></ul><ul><li>English, Welsh and Northern Irish domiciled students pay fees to study here of £1735 per academic year. </li></ul><ul><li>ALL students at English, Welsh and Northern Irish Universities pay the variable “Top-Up Fees”. </li></ul><ul><li>Student Loans are one element of student funding available to all UK students and are paid back only once certain criteria are met. </li></ul>
    14. 14. Additional Information <ul><li>Students Awards Agency for Scotland </li></ul><ul><ul><li> </li></ul></ul><ul><li>Department for Education and Skills </li></ul><ul><ul><li> </li></ul></ul><ul><li>Our own site! </li></ul><ul><ul><li> </li></ul></ul>
    15. 15. Thanks for listening. Any Questions? [email_address] 0131 451 3747