Student finance at university

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  • Why funding has changedFrom September 2012 uni funding changed and unis receive less funding from government bodiesCost of degrees to be met by studentsWhat cover in presentationPresentation provide guidance on HE finance for 2013. Bear in mind may alter slightly for 2014 university entryCover costs of uni, sources of income and graduate employabilityAs you know from Sept 2012 universities received less money from the government bodies and were required to charge students a larger tuition fee to cover the cost of their degree.In this ppt I’ll provide some guidance on HE finance but bear in mind that some of the costs will change by the time your son and daughter is looking.
  • Tuition feeDepends on uni and course – read bulletDo not need to be paid up frontLook out for what’s included in fee – some unis include some coursecosts and some dontAdditional course costs – read bullets – may includeMaterials/equipment – lab costs, safety shoes, computer and consumablesLiving costsRange of - read bullets
  • table show estimate of various costs for 2012/13living costs will vary according toplace of studytype of courseaccommodationindividual lifestyle and overall student experience wish to achieveability to budget
  • first three, tuition fee loan, maintenance loan and maintenance grant available from Student Finance England (SFE) through application processtalk in detail about each shortlyuniversity bursaries and scholarships availableno need to apply separately as income information and eligibility is shared by SFE with relevant unisgrants for those with disabilities, children – not included due to lack of timeother sources of income – touch on briefly
  • available to all applicantscan apply for each year of study – for full or part feeTuition fee loan - paid directly to uni/college upon enrolmentMaintenance loans are payable in 3 instalments each year – Oct, Jan and AprFull information provided in handout
  • Maintenance grants are payable in 3 instalments each year – Oct, Jan and AprFull information provided in handout
  • Important to research this with each university interested in – as variesNSPGovernment requirements were for unis to provide support for first year only but most unis offer same support for all three years, others decreasing benefits after first yearNSP also based on assessment on household income generally less than £25K (Lough SchProg £18K) – support to the value of £3KVary in form of….Read bulletsUniversity specificUsually year of entry only and dependent on grades – often grades AAA at A level or equivalentAround £,1000In addition to any income based NSP paymentsGenerally uni has to be students firm choiceLU examples – some engdepts, chemistry, computer science, design school, info sci, materials, maths, physics, sportBoth NSP and Uni specific support does not have to be paid back
  • not like standard bank loannot listed on credit filesrepayments are linked to earnings not amount outstandingpayroll deduction made – employer calculates and deducts from salaryread bullet 3£21K will rise in future in line with average earningsread bullet 4If earning £25K per year pay £30 per monthRepayments are same if take £6K or £9K course – don’t go for cheaper course if it’s not rightread bullet 5Interestwhilst studying – rate of inflation (RPI) + 3%Earnings below £21K - RPI onlyBetween £21K - £41K – RPI + up to 3% (sliding scale)Above £41K – RPI + 3%Remember payments linked to earnings not amount owedread bulletwritten off – payments stop regardless of how much you still owe
  • Column 4 is intended as a guide only due to the assumptions made

Transcript

  • 1. Student FinanceLisa Ambler, Loughborough University
  • 2. CostsUK/EU Tuition fee• Maximum £9,000 2012/13 per year• Does not have to be paid up frontAdditional course costs• Books and stationery• Materials/Equipment• FieldworkLiving costs• Rent, bills and food• Travel• Clothing and laundry• Having fun
  • 3. Estimate of Additional and Living Costs - AnnualFully catered Self cateredHall fees £5,200 (39 weeks)* £3,500 (39 weeks)*Food £400 £1,450Clothing £225 £225Household / Laundry £160 £160Course Costs £350 £350Travel £250 £250Telephone £240 £240Leisure £865 £865Insurance £100 £100Other £100 £100Total £7,890 £7,270*2012 prices
  • 4. Tuition fee loan Maintenance loanMeans-tested Maintenance GrantBursary from universityGrants for people with disabilities;childrenOther sources of incomeScholarship from universitySources of IncomeStudent Loan
  • 5. Student Loan – available from the GovernmentTuition Fee Loan• Available to everyone – not means tested• Covers full cost of university fee• Paid direct to your university/collegeMaintenance / Living Costs Loan• Available to all• Variable amount depending on where you live andhousehold income and whether you qualify for a grant(outside London Up to £5,500 2013/14)• Paid directly to the student
  • 6. Maintenance Grants – available from the GovernmentMaintenance Grant• Not repayable• Household income less than £42,611 (2013/14)• Maximum grant of £3,354 (2013/14)
  • 7. Applying for your student loan and grantFull-time and part-time students apply online to Student FinanceEngland Tuition Fee Loans, Maintenance Loans and MaintenanceGrants.You’ll be asked to set up an online account if you’re applying forthe first time.You don’t need a confirmed place at a university or college toapply.You must meet the deadline if you are to get your money in timefor the start of the academic year (for 2013/14 = May 2013)https://www.gov.uk/apply-for-student-financehttp://www.studentfinance.direct.gov.uk/
  • 8. University Bursaries and ScholarshipsNational Scholarships Scheme• Differs by university/college• Fee waivers / Cash bursary / Accommodation discounts• No repayableHEI specific scholarships and bursaries• Merit-based / Sport• Not repayable
  • 9. Other sources of income• Parental contributions• Part-time Employment• Savings from the summer before• Birthday and Christmas gifts• Overdraft• Interest charged / fees• Repayment deadlines• Credit cards• Interest charged• Shop around for deals
  • 10. Repaying your student loan• Repayable from April after you leave university and earn £21,000+ per annum• Payroll deduction• Repayment 9% of income over £21,000• Interest charged from the time your first payment is madeuntil you pay your loan back in full (linked to inflation).• Written off after 30 yearsSo approx.if you earn £25,000 per year = £2083 per month9% of £4,000 (amount over the minimum threshold)= £30 repayment per month
  • 11. Paying back your Student Loan: SummarySalaryAmount of salary onwhich 9% is calculatedMonthly repaymentEstimated time taken topay back(Assuming total loan of£43,500, interest rate of6% & earnings inflation of5%)£25,000 £4,000 £30.00The loan will not be paid offat these rates. Theremaining balance will bewritten off after 30 years.£30,000 £9,000 £67.50£35,000 £14,000 £105.00£40,000 £19,000 £142.50£45,000 £24,000 £180.00 24 years£50,000 £29,000 £217.50 21 years£55,000 £34,000 £255.00 18 years£60,000 £39,000 £292.50 16 years
  • 12. More information• www.direct.gov.uk – Student Finance Section• www.ucas.ac.uk• www.lboro.ac.uk• www.moneysavingexpert.com/students