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Student Finance. Content. How it all works Applying Repaying Resources. A word about fees. Up to £9,000 per year… …but tripling fees ≠ tripling costs: the real cost is in repayment Nothing has to be paid upfront Most students won’t repay the full amount borrowed. - PowerPoint PPT Presentation
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A word about fees
• Up to £9,000 per year…
• …but tripling fees ≠ tripling costs: the real cost is in repayment
• Nothing has to be paid upfront
• Most students won’t repay the full amount borrowed
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Summary of changes for 2013
• Full and part-time fees remain £9,000 max
• Living cost loans remain fixed at 2012 rates
• Household income thresholds remain fixed at 2012 rates
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Tuition Fee Loan
• Loan for cost of fees ( up to £9,000 per year in 2013)
• Available for full-time and part-time study
• Repay only once graduated and once earning £21k
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Living Cost Support
• Money for living costs – bills, food, rent
• Amount depends on income
• May receive a grant (non-repayable) – earnings under £42,600
• Repay loans only once graduated and once earning £21,000
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Household Income
Maintenance Grant
Maintenance Loan
Total
£25,000 & under £3,354 £3,823 £7,177
£30,000 £2,416 £4,292 £6,708£35,000 £1,478 £4,761 £6,239£40,000 £540 £5,230 £5,770£45,000 £0 £5,288 £5,288£50,000 £0 £4,788 £4,788£55,000 £0 £4,288 £4,288£60,000 £0 £3,788 £3,788
£62,125 & over £0 £3,575 £3,575
Student living away from home outside London 2013
Combined Support for Living Costs
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Bursaries:• May link to National Scholarship Programme• Depend on circumstances• Vary by institution
Scholarships:• Academic, sport or music• Subject specific or generic• Vary by institution
Scholarships & Bursaries
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May receive extra money or support if you:
• Have children or adults dependent on you
• Have a disability or learning difficulty
• Are a student parent
Additional Support
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www.direct.gov.uk/studentfinance
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Applications
• Apply early, apply online
• Consent to share: helps with scholarship/bursary provision
• Only supply evidence if you are asked for it.
• Check online account before calling to save time
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Applications cont.
• No need to wait for a confirmed place
• If unsure of fee amount, select ‘maximum’
• Process in place for students with incorrect fee loan
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www.facebook.com/SFEngland
www.twitter.com/SF_England
• Daily surgeries• Announcements on key dates, turnaround times etc.• Links to information and guidance materials
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www.thestudentroom.co.uk/studentfinance
Sifter widget
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Student Loan Repayment
• You are eligible for repayment:April after you leave/graduate if full-time, orApril 4 years after starting if part-time
• No repayments until earning over £21,000 pa gross
• Repayments via HMRC @ 9% of earnings above £21,000
• No early repayment charge
• Any outstanding debt written off after 30 years
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Student Loan Repayment
Income each year before tax Approximate monthly repayment
Old system New system
£15,000 £0 £0
£16,000 £8 £0
£18,000 £23 £0
£21,000 £45 £0
£24,000 £68 £23
£27,000 £90 £45
£30,000 £113 £68
£33,000 £135 £90
£36,000 £158 £113
£40,000 £188 £143
Interest RatesICR Historical Interest Rates
*2.56 is the median – the interest rate was adjusted down four times in 2008/09
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Additional Info
• A student loan is unlikely to affect your ability to get a mortgage (The Council for Mortgage Lenders )
• Mortgage lenders are most interested in your monthly income (‘ability to repay’)
• Under the new system monthly repayments lower = greater monthly income
• Students may find they are better off…
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Better off with higher fees?Example 1 (old system):
• Old system student borrows £21,000 at end of studies (£3,000 per year fees loan x 3 + £4,000 living cost loan per year x 3)
• Plus interest owes approx £23,000 after studies
• Starting salary of £24,000• Total repayments = £35,500 (repaying full
balance in approx 24.5 years)
Assumptions: 2% salary growth, 3% average inflation/interest
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Better off with higher fees?Example 2 (new system):
• New system student owes £40,000 at end of studies (£9,000 per year fees loan x 3 + £4,300 per year living cost loan x 3)
• Plus interest owes approx £45,000 after studies
• Starting salary of £24,000• Total repayments = £22,000 (balance
written off after 30 years)
Assumptions: 2% salary growth, 3% average inflation/interest
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Student Loan Repayment
Income each year before tax Approximate monthly repayment
Old system New system
£15,000 £0 £0
£16,000 £8 £0
£18,000 £23 £0
£21,000 £45 £0
£24,000 £68 £23
£27,000 £90 £45
£30,000 £113 £68
£33,000 £135 £90
£36,000 £158 £113
£40,000 £188 £143