Finance july 2001


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  • SSG does not reduce amount of maintenance loan
  • Point out for students with income over £26,030 the £265 course grant will be reduced by £1 for every £9.47 of income before tax.Table refers to single student without children For students with partner or children part of household income is ignored.Reduce household income by ;£2,000 for oldest dependent child£1,000 each for any other dependent children£2,000 if you live with a partner
  • Explain we will cover what is listed on slideOver view of changes;students already in system and continuing their studies in 2012 will not be affected by changesStudents deferring entry from 2011 to 2012 will fall under 2012 regsChanges will affect students full time first degree courses beginning on or after 1stsept 2012A lot of info is provisional and could be subject to further change but should be finalised in the summerThe website the gov are directing students to is ‘topping-up’ to an Honours degree in 2012-13 for example from an HND or Foundation Degree, will be treated as a continuing student and will therefore remain under the current system for fees and support. They will not be affected by the 2012 changes as long as their mode of study remains the same.- Maximum variable tuition for those starting their studies before 1st Sept 2012 will be £3,465. A tuition fee loan will be available to cover this amount.
  • From 2012 universities and colleges can charge up to £9,000 per year for HE courseAny institution wishing to charge over £6,000 for some or all of their courses must submit an Access Agreement to the Office for Fair Access outlining how they will support student to access university Draft Access agreements have now been submitted to OfFA. These should have included how the institution plan to implement the national Scholarship Programme for their students.Institutions can expect to hear from OfFA at the start of July about the decision made in response to their draft Access agreement.Tuition Fee Loans - There remains no need to pay tuition fees up front - Students will be able to apply for a non-means tested tuition fee loan to cover the level of tuition fee charged for their course at the institution they study at - Students will apply online to Student Finance England for tuition fee loans - Tuition fee loans will be paid directly to universities/colleges - It is not yet clear whether students will be able to elect to pay their fees upfront (in cash) if they wish. There is no requirement to pay fees upfront. Primary legislation would be required to stop universities from accepting upfront payments, though this could be avoided if the government introduced a penalty for upfront payments rather than a complete ban - Students can apply for tuition fee loan support for each year of their course Loan Repayments Government plan to increase the £15,000 repayment threshold for those that start their studies before 2012 by RPI each year from April 2012 through to April 2015. This includes any graduate currently repaying an Income Contingent Student Loan. -- Students will begin repayments in the April following graduation, when they are earning over £21,000 - As with the current system, repayments will be deducted straight from the salary - If a student leaves their course early and would have been due to start repayments in 2016, they will not start repayments until April 2016 - Interest rates on student loans will change from 2012 entry. We will cover more on this shortly. Deferrals - Students deferring their entry from 2011 to 2012 will fall under the 2012 funding systems
  • - Explain the content on the slide - Students should be able to apply for support from late 2011/early 2012, via the website - As with tuition fee loans, students will apply online to Student Finance England for their loans and grants - Students do not need to wait until they have been offered a place at a university or college to apply for their funding - The expectation is that students will be able to apply for their funding at the same time as they complete their course applications through UCAS - Student loans will be paid directly in to the nominated bank account of the student in three instalments, at the start of each term - Students can apply for this support for each year of their course
  • Students with a household income of £42,600 or less will be assessed for a non-repayable grant to assist with their living costs - The grant is worth up to £3,250 per year for those with a household income of £25,000 or less - Partial grants will be available as household income increases, up to the maximum HHI of £42,600
  • Explain the content of the slide - The figures given are based on a student living away from home and studying outside London - There is a small offsetting of loan against grant, meaning that some students will receive more non-repayable support whilst still receiving more support overall - As with the loan, the grant is paid in three installments', directly in to the student’s bank account at the start of each term - Students can apply for this support for each year of their course
  • Repayments - As stated earlier, students will begin repayments in the April following graduation, when they are earning over £21,000 per annum. This equates to earnings of around £1,750 per month - As with the current system, repayments for tuition and maintenance support will be combined in to one student loan repayment account - Repayments will be 9% of any income over £21,000 - Interest added to student loans falls under a new system from 2012. The government plan is as follows: o During their studies and through to the April following graduation interest will be added at Retail Price Index (inflation) plus 3% o From the April following the end of the course interest will be at the rate of inflation where income is under £21,000 o For graduates earning between £21,000 and £41,000 interest will fall between RPI and RPI plus up to 3% depending on income o For graduates earning over £41,000 interest will be RPI plus 3% - This means that higher earning graduates will make a greater repayment contribution - Graduates will not control how much they repay. The deduction will come directly from their salary when they are earning over £21,000 pa. Self-employed workers will have separate arrangements through HMRC - There is currently a government consultation underway regarding whether it will be possible for students to repay their loans early. There may be a charge attached to making early repayment - Any outstanding loan amount will be written off after 30 years
  • The table shows a comparison of repayments made through the current system and under the new system , explain the difference in payments
  • Additional Support - Disabled Students Allowances will be available for those students that will incur additional costs as a result of a disability - DSA is paid in addition to loans and grants already mentioned - DSA is not means tested against household income, and does not have to be repaid - DSA is available to full time and part time students - Students with childcare responsibilities using registered or approved childcare may be able to access the Childcare Grant - CCG will pay 85% of actual childcare costs during term time and in holidays. Maximum amounts haven’t changed - Parents studying on a full time course may also be able to access support through Parents Learning Allowance - CCG and PLA and means tested, but do not have to be repaid. PLA remains at £1,508. - It is expected that the Access to Learning Fund will continue. This is a hardship fund administered by institutions to support those students finding themselves in expected financial difficulty during their studies. - The ALF cannot be relied upon to guarantee living cost support and students should explore the other funding options before enrolling on their chosen course ADG expected to be £2,642
  • From 2012 entry eligible part time students will be able to apply for a tuition fee loan - This loan replaces the means tested fee grant and course grant - The tuition fee loan will not be means tested - Part time students will not be able to access the loans and grants offered to support living costs - Part time students will be able to access disabled students allowances - Eligibility will be dependent on the course studied, whether the student already holds a higher education qualification, and where the live and study - Eligibility will also depend on the intensity of study, that is how long it will take to complete the course compared to a full time equivalent course. If it will take twice as long then the intensity would be 50%. Eligibility for support is dependent on a minimum intensity of 25% - If a student is unsure of the intensity of their course they should ask the institution concerned - For the loan, part time students will have the same application and repayment criteria as full time students - The government plans to limit the tuition costs charged by universities for part time students. This would mean that for eligible students the fee loan available would cover fees up to the maximum that could be charged by an institution. More information is not yet available about this government proposal.
  • Intention is that NSP will provide a direct benefit to individual eligible students - Eligible students will receive a benefit of not less than £3,000, in year one- This is not a recurrent or annual entitlement - No more than £1,000 of the award can be provided as a cash bursary - Involvement with the NSP will be compulsory for any institution charging over £6,000 - The government contribution to the NSP will be £50m in financial year 2012-13, £100m in 2013-14 and £150m from 2014-15 - The arrangements will be reviewed after 2012-13, with full implementation by 2014-15 - Allocations to institutions will be confirmed based on size of institution and to meet the scheme objectives - Within their Access Agreement submitted to OfFA institutions must include their intended match funding level, though the expectation initially is that there will be a 1:1 match for government and institution funding - Institutions without an Access Agreement (i.e. those not charging over £6,000 for any of their HE courses) who wish to take part in the NSP will have a reduced match funding requirement (50% for the first year) - Institutions could match fund by increasing the number of awards available or by increasing the value of the awards (above £3,000), and could choose to award this in subsequent years of the course - The £3,000 allocation from the government must be awarded to students in their first year - Individual institutions must decide how they will make awards, and must advertise this via their websites - The criteria set by the government is that the household income should be below £25,000. Beyond that institutions can devise their own criteria - UCAS will signpost to where individual institution information about the NSP will be provided (in due course) - The range of support that could be offered includes: o A fee waiver or discount o A free foundation year where this leads to progression to a professional career via a course with high entry requirements o Discounted accommodation or similar service o Financial scholarship or bursary of no more than £1,000 if a cash award A number of students will not be eligible for the NSP – these include teaching students, NHS-funded students, students transferring from another institution, and those ordinarily resident in Scotland, Wales or NI. Postgraduate students will not be eligible.
  • Finance july 2001

    1. 1. 7/7/2011<br />Student Services<br />Student Financial Support<br />
    2. 2. 7 July 2011<br />Student Services<br />Student Financial Support Team<br />Welcome to Edge Hill University from <br /> TheMoney Doctors<br />We are here to;<br />Translate financial regulations & changes to government funding into easily understandable and accessible formats<br />Keep abreast of any changes so that we can keep students, parents and staff fully informed<br />Administer Access to Learning Fund and Short-term loans<br />Advise on benefits available to individual groups of students.<br />Refer students to other agencies<br />
    3. 3. Where We Are Based<br />The Student Financial Support Team are based in the Student information Centre, Ormskirk Campus and appointments with the Finance and Welfare Rights Advisers can be made at the Information Desk or over the telephone.<br />The Student Information Centre is open during term-time between 8.30am -7.30pm Monday to Thursday and 8.30 – 5.00pm Friday. The Centre closes at 5.00pm in the vacations.<br />7/7/2011<br />Student Services<br />
    4. 4. What will my financial package be as a FT student in 2011?<br />Fee loan <br />Maintenance loan<br />Grants for eligible students<br />Edge Hill Bursary for eligible students<br />Scholarship for successful applicants<br />Government benefits for eligible students<br />7/7/2011<br />Student Services<br />
    5. 5. Finance Arrangements<br />All assessment for fee loans, maintenance grants and maintenance loans are made online at<br />Early application is advised to ensure funding is available at start of term. <br />Assessment based on household income.<br />Payments are made via the Student Loan Company.<br />7/7/2011<br />Student Services<br />
    6. 6. 7/7/2011<br />Student Services<br />Tuition Fees Full-Time Students<br />Annual fees for new FT students commencing courses in 2011;<br />£3,375 pa for full time Foundation Degree students<br />Choice of Payment Methods<br />Direct to the University ( standing order, cheque, debit & credit card )<br />Via Tuition Fee Loan (Student Loan Company pays the University, student pays back after graduation)<br />
    7. 7. 7/7/2011<br />Student Services<br />Maintenance loans<br />Designed to assist with living costs such as food, accommodation and travel<br />
    8. 8. 7/7/2011<br />Student Services<br />Maintenance Grants or Special Support Grant<br />Non –repayable<br />Dependant on household income <br />If household income is less than £25,000 they you may qualify for the full grant of £2,906(subject to previous study rules)<br />If household income is between £25,001 and £50,020 you may qualify for part of the grant<br />If are eligible for a Maintenance Grant, then the amount you can borrow through a Maintenance loan will be reduced<br />This means that if you come from a lower income household, you’ll have a smaller loan to repay when you finish studying and start work<br />Range of additional benefits for those with disabilities, dependant children or an adult dependant.<br />
    9. 9. Maintenance Grants (cont.)<br />7/7/2011<br />Student Services<br />
    10. 10. Payback Time!<br />Loans have to be repaid<br />Won’t have to start repaying until the April after you have finished your course.<br />Only start repayments when earning over £15,000pa<br />Monthly payments calculated on how much you earn, not how much you owe<br />7/7/2011<br />Student Services<br />
    11. 11. Council Tax Exemption <br />Full time students are classed as being ‘invisible’ for council tax purposes.<br />If you are the only adult living in the house then you should become exempt for council tax purposes <br />If you live with another adult then you may qualify for a 25% reduction<br />If there are two or more adults then no reduction will be made<br />7/7/2011<br />Student Services<br />
    12. 12. 7/7/2011<br />Student Services<br />Tuition Fees 11/12<br />Annual Fees:<br />Up to £1,345 pa for part time courses<br />Choice of payment methods:<br />Direct to University (standing order, cheque, debit & credit card)<br />Via Fee Grant for eligible students<br />
    13. 13. PT Funding<br />Students commencing PT courses from 2011 may be eligible for the part time student support package from SFE<br />The course intensity must be at least 50% of an equivalent full time course<br />Students will be assessed for a course grant and a fee grant but no help with living costs<br />The amount of fee grant a student may be entitled to receive will depend on the intensity of study and household income<br />Students can only apply for this support once registered on a course<br />None of this support is repayable<br />7/7/2011<br />Student Services<br />
    14. 14. Application process…<br />Apply to Student Finance England (SFE) for assessment<br />Download form PTG1-<br />Edge Hill will need to stamp the form to confirm you are on the course<br />Send proof of your yours and partners income, if relevant, with your application<br />Application needs to be made within 6 months<br />
    15. 15. Automatic Entitlement<br />Students will receive the maximum course grant and fee grant if in receipt of any of the following benefits<br /><ul><li>Income Support
    16. 16. Housing Benefit /Local Housing Allowance
    17. 17. Income related Employment and Support Allowance (ESA)
    18. 18. Council Tax Benefit
    19. 19. Income based Jobseekers Allowance
    20. 20. New Deal Allowance</li></ul>7/7/2011<br />Student Services<br />
    21. 21. Fee Grant and Course Grant Rates for 2011/12<br />
    22. 22. Five minute break<br />7/7/2011<br />Student Services<br />
    23. 23. 2012 Funding<br />2012 fees, loans & grants <br />National Scholarship Programme <br />Additional Support <br />2012 part-time study <br />Information to be confirmed <br />7/7/2011<br />Student Services<br />
    24. 24. Tuition Fees 2012 <br />Tuition Fees <br />Tuition Fee Loans <br />Loan Repayments <br />Deferrals <br />7/7/2011<br />Student Services<br />
    25. 25. Supporting Living Costs 2012 <br />2012 Maintenance Loans<br />Living away from parental home & studying in London £7,675 <br />Living away from parental home & studying outside London £5,500<br />Living at your parent’s home £4,375 <br />20<br />
    26. 26. Supporting Living Costs 2012 <br />2012 Maintenance Grants & Special Support Grants<br />Students with a household income of £42,600 or less will be assessed for a non repayable grant<br />Worth up to £3,250 if your household income is less than £25,000<br />Partial grants if your household income is less than £42,600<br />21<br />
    27. 27. Maintenance Grants<br />
    28. 28. Loan repayments 2012<br />Students start to repay loans in the April after they have graduated, when they are earning over £21,000 pa<br />Repayments calculated at 9% of any income over £21,000 <br />Any outstanding loan amount will be written off after 30 years. <br />
    29. 29. Repayment Comparison<br />7/7/2011<br />Student Services<br />
    30. 30. Additional Support<br />Disabled Students Allowances<br />Child Care Grant<br />Parents Learning Allowance<br />Adult Dependant Grant<br />Access to Learning Funds<br />7/7/2011<br />Student Services<br />
    31. 31. Part-Time Study 2012 <br />Tuition Fee Loan <br />Not means-tested <br />Limits on part-time tuition costs <br />Loan Repayments <br />Additional Support <br />7/7/2011<br />Student Services<br />
    32. 32. NSP 2012 <br />Government Contribution <br />Match Funding <br />Not less than £3,000 in tuition discounts & other benefits <br />Full implementation 2014-15 <br />7/7/2011<br />Student Services<br />
    33. 33. 7 July 2011<br />Student Services<br />RED ALERT…<br />Interactive budget sheet<br />How much income will I have?<br />How much will I spend?<br />Let’s now use RED ALERT to see if you will be in the red or in the black at the end of the year!<br />
    34. 34. 7/7/2011<br />Student Services<br />USEFUL SOURCES OF INFORMATION AND ADVICE<br />Student Financial Support Team at Edge Hill<br />The following websites:<br /><br /><br /><br />
    35. 35. 7/7/2011<br />Student Services<br />Student Financial Support Team<br />Student Financial Support Team 01695 584452<br /><br />Finance and Welfare Rights Advisors<br />Shahida Ahmed 01695 584502<br />Janice Barnes 01695584186<br />Helen Long 01695 584186<br />
    36. 36. Any Questions?<br />Thank you for Listening and enjoy your course<br />7/7/2011<br />Student Services<br />