Finance Oct 2009


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Finance Oct 2009

  1. 1. Student Finance 2010/11
  2. 2. Investment for the future <ul><li>Primarily (but not exclusively) an online system </li></ul>“ An investment where the return lasts a lifetime.” Professor Tim Wilson, Vice-Chancellor
  3. 3. The current situation <ul><li>Student Finance Direct has become Student Finance England: </li></ul><ul><li> </li></ul><ul><li>Local Authority Application System has become National Centralised Application System </li></ul><ul><li>New Customer Service Team in Darlington </li></ul><ul><li>Primarily (but not exclusively) an online system </li></ul><ul><li>Primarily (but not exclusively) an online system </li></ul>
  4. 4. Tuition Fees <ul><li>No up front fees for ALL full-time undergraduate courses </li></ul><ul><li>Variable tuition fees between £0 and £3,290 for new students starting in September 2010, almost all Universities are charging £3,290 </li></ul><ul><ul><ul><li>(a rise of 2.04% from 09/10) </li></ul></ul></ul><ul><li>Primarily (but not exclusively) an online system </li></ul>
  5. 5. Financial Support <ul><li>Tuition Fees Loan </li></ul><ul><ul><li>Up to £3,290 </li></ul></ul><ul><li>Maintenance Loan </li></ul><ul><ul><li>Up to £4,950 (outside London) </li></ul></ul><ul><li>Maintenance Grant </li></ul><ul><ul><li>Up to £2,906 </li></ul></ul><ul><li>Bursaries </li></ul><ul><ul><li>Varies across institutions </li></ul></ul><ul><li>Scholarships </li></ul><ul><ul><li>Varies across institutions </li></ul></ul><ul><li>Bursaries </li></ul><ul><ul><li>Varies across institutions </li></ul></ul><ul><li>Scholarships </li></ul><ul><ul><li>Varies across institutions </li></ul></ul>
  6. 6. Tuition Fees Loan <ul><li>Home and EU students eligible for a non income assessed loan to cover tuition fee costs </li></ul><ul><li>Paid directly to the university on behalf of the student </li></ul><ul><li>“ The rate of interest makes no difference to borrowers’ monthly repayments. </li></ul><ul><li>Borrowers repay 9% of their earnings over the income threshold of £15,000. </li></ul><ul><li>Whatever the rate of interest is, that monthly repayment will not change” </li></ul><ul><li>Primarily (but not exclusively) an online system </li></ul>
  7. 7. Maintenance Loans <ul><li>72% - not dependent on household income </li></ul><ul><li>28% - dependent on household income </li></ul><ul><li>0% interest rate from 1 Sept 09 </li></ul><ul><li>Paid to students in 3 instalments </li></ul><ul><li>Paid directly into student bank account </li></ul>
  8. 8. 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
  9. 9. Means Testing <ul><li>For most school leavers ‘household income’ is based on: </li></ul><ul><li>Gross taxable income of the student excluding any earnings during university term time and holidays; </li></ul><ul><li>PLUS Gross taxable income of parent/partners/step parents; </li></ul><ul><li>LESS deductions for payments into pension funds and £1,130 for each other dependent child in the household. </li></ul>
  10. 10. Maintenance Grant <ul><li>Maximum £2,906 </li></ul><ul><li>(maintained at 2009/10 level) </li></ul><ul><li>Dependent on household income </li></ul>Household income Grant Available £25,000 or less Maximum £2,906 £30,000 - £50,020 £1,906 - £50 £50,020 or more No Grant
  11. 13. Loan repayments <ul><li>April after student leaves the course </li></ul><ul><li>Earnings over £15,000 pa </li></ul><ul><li>9% of income above £15,000 </li></ul><ul><li>Any outstanding student loan balance written off after 25 years </li></ul>
  12. 14. Repayment Example A <ul><li>Student who has left course and earning £18,000 </li></ul><ul><li>(£18,000 - £15,000 = £3000) </li></ul><ul><li>Will pay 9% of 3000 </li></ul><ul><li>Yearly = £270 </li></ul><ul><li>Monthly = £22.50 </li></ul><ul><li>Weekly = £5.19 </li></ul>
  13. 15. Repayment Example B <ul><li>Student who has left course and earning £24,000 </li></ul><ul><li>(£24,000 - £15,000 = £3000) </li></ul><ul><li>Will pay 9% of 9000 </li></ul><ul><li>Yearly = £810 </li></ul><ul><li>Monthly = £67.50 </li></ul><ul><li>Weekly = £15.58 </li></ul>
  14. 16. Bursaries <ul><li>E.g. University of Hertfordshire : </li></ul><ul><li>£1000 bursary available for full time undergraduate students in receipt of the full means tested maintenance grant </li></ul><ul><li>Reduced to £500 from 2011/12 entry </li></ul><ul><li>Non-repayable amount </li></ul><ul><li>Paid directly by the University </li></ul><ul><li>Not linked to any student loan from the government or scholarship </li></ul><ul><li>Not available for degrees in nursing and midwifery, physiotherapy and radiography, social work and PGCE students </li></ul>
  15. 17. Scholarships <ul><li>E.g. University of Hertfordshire: </li></ul><ul><li>A range of scholarships from the University of Hertfordshire and commercial and professional partners </li></ul><ul><li>Does not affect any grant, loan or other income </li></ul><ul><li>Non-repayable </li></ul><ul><li>Examples: </li></ul><ul><ul><li>Science, Technology, Engineering and Maths (STEM) Scholarship </li></ul></ul><ul><ul><li>Chancellor’s Gifted and Talented Scholarship </li></ul></ul><ul><ul><li>Chancellor’s Entrepreneurial Excellence Scholarship </li></ul></ul>
  16. 18. Scholarships <ul><li>Science, Technology, Engineering and Maths (STEM): </li></ul><ul><li>£1,000 in 1 st year, </li></ul><ul><li>£500 in 2 nd year, </li></ul><ul><li>£500 in final year </li></ul><ul><li>Given automatically * to students with 280 points </li></ul><ul><ul><li>*some courses may not be eligible </li></ul></ul>
  17. 19. Scholarships <ul><li>Chancellor’s Gifted and Talented </li></ul><ul><li>Awarded to 40 students each year </li></ul><ul><li>Minimum of 360 UCAS points </li></ul><ul><li>Awarded £2,000 per year </li></ul><ul><li>Work as a student ambassador </li></ul><ul><li>Application form : </li></ul><ul><li>Deadline 9 April 2010 </li></ul>
  18. 20. Scholarships <ul><li>Chancellor’s Entrepreneurial Scholarship </li></ul><ul><li>Awarded to 20 students each year </li></ul><ul><li>Minimum of 360 UCAS points & a business idea </li></ul><ul><li>Awarded £3,000 per year plus business guidance and mentor </li></ul><ul><li>Work as a student ambassador </li></ul><ul><li>Application form : </li></ul><ul><li>Deadline 9 April 2010 </li></ul>
  19. 21. Additional support <ul><li>Additional Grants </li></ul><ul><ul><li>Disabled Student Allowance </li></ul></ul><ul><ul><li>Adult Dependants Grant </li></ul></ul><ul><ul><li>Care Leavers’ Grant </li></ul></ul><ul><ul><li>Company Support </li></ul></ul><ul><li>Discretionary Support </li></ul><ul><ul><li>Access to Learning Fund (or equivalent) </li></ul></ul>
  20. 22. How to apply <ul><li>Unlikely that the application cycle for Student Finance England will open before Nov 2009 </li></ul><ul><li>Apply Online – you will be prompted through UCAS </li></ul><ul><li>Apply as early as possible! </li></ul><ul><li>W ill require parents’ income details </li></ul>
  21. 23. Income <ul><li>Maintenance Loan </li></ul><ul><li>Maintenance Grant </li></ul><ul><li>Parental Contributions </li></ul><ul><li>Gap Year Earnings </li></ul><ul><li>Part Time Work </li></ul><ul><li>Scholarships / Sponsorships </li></ul><ul><li>Savings from Holiday Work </li></ul><ul><li>Placement £10,000 – £15,000 </li></ul>
  22. 24. Expenditure <ul><li>Tuition Fee </li></ul><ul><li>Rent </li></ul><ul><li>Household Bills </li></ul><ul><li>TV Licence </li></ul><ul><li>Telephone </li></ul><ul><li>Food </li></ul><ul><li>Household Items </li></ul><ul><li>Clothes </li></ul><ul><li>Leisure </li></ul><ul><li>Insurance </li></ul><ul><li>Car Expenses </li></ul><ul><li>Travel </li></ul><ul><li>Books/Stationery </li></ul><ul><li>Toiletries </li></ul>
  23. 25. Student bank accounts <ul><li>Shop around </li></ul><ul><li>What’s on campus/nearest? </li></ul><ul><li>What freebies do you get? </li></ul><ul><li>How much interest free overdraft? </li></ul><ul><li>How long does it continue for? </li></ul><ul><li>What is graduate account do they offer? </li></ul>
  24. 26. Pitfalls <ul><li>Be aware of interest rates on credit cards and other loans </li></ul><ul><li>Interest rates can be up to 40% </li></ul>
  25. 27. Managing your money <ul><li>Always allow extra money for freshers’ week! </li></ul><ul><li>Get a student bank account </li></ul><ul><li>Create a budget and stick to it </li></ul><ul><li>Plan ahead – start saving NOW </li></ul><ul><li>If you are struggling – talk to someone – your parents, the bank, student advisors </li></ul>
  26. 28. Thank you Student Finance 2010/11