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Student Finance
Update
30th November 2010
Wiltshire CollegeAndy ShentonSenior Student Finance Consultant South & Isle of Wight
Agenda
• Browne Review & 2012/13 Proposals
• Student Finance package for 2011/12
• Customer Journey
• IAG for Students
• IAG Resources for Practitioners
• Quiz
• Questions & Answers
• Lord Browne published his report on 12th October 2010 and
The Secretary of State made a statement in the House of
Commons responding to and endorsing the report the same
day
• The Public Spending Review concluded on 20th October 2010
• The Minister of State for Universities & Science made a
statement to the house on 3rd November 2010 outlining the
governments proposals for HE Funding in 2012 and beyond,
which included many of Lord Browne’s recommendations
• A full white paper will be published during the winter
2012/13 Arrangements
• Any reforms will be introduced for those entering higher education in 2012. Any changes to higher education funding and student finance will therefore not affect those already at university, those starting in 2011 and those who have left university and are in repayment
• The government normally tries to announce the details of the student support arrangements in the summer of the year when most students apply. So, for those starting university in autumn 2012, details on student support should be announced by summer 2011
• Students who defer entry from 2011/12 to 2012/13 will have their loans and grants for living costs set at the 2012/13 rates. It will be for Universities to decide the level of tuition fees they charge.
2012/13 Arrangements
Summary of Proposals2011/12 2012/13*
Tuition Fee Loan (“Graduate
Contribution”)Max £3375
Two tiers: max £6,000 or £9,000
£9000 only in exceptional circumstances
Fee Loans for part-time courses if intensity 1/3 +
Maintenance Loan
Variable amounts in 3 bands Means tested
Variable amounts in 3 bands – details to be confirmedLoans increased for household incomes from £42K -
£60K
Maintenance Grant
Max £2906£25K / £50K thresholds
Max £3,250£25K / £42K thresholds
HEI Bursary £338+ for those on full grant paying full fees
New £150m National Scholarships Programme – obligatory for HEI to participate if fees exceed £6,000
Application Separate application process post UCAS No details yet
Repayment
9% of earnings over £15K threshold
Interest inflation linked (currently 1.5%)
Written off after 25 years
9% of earnings over £21K threshold£21k - £41K - Tapered inflation RPI + 3%
Written off after 30 yearsEarly repayment arrangements being considered
*Please note that these are ONLY proposals:
NO decisions have yet been taken, and the package of support available to 12/13 entrants will not be announced until later in 2011
www.bis.gov.uk/highereducation
What’s New for2011/12
Policy Changes for 11/12
• Maximum Fees up £85 from £3,290 to £3,375
• Minimum Bursary (if full fees) up from £329 to £338
• All other support frozen at 2010/11 rates
• Other minor amendments to policy - do not affect eligibility
What can students get in 11/12
• Tuition fee loan
• Maintenance loan
• Maintenance Grant
• Extra support for those with special circumstances
Fee amounts for 11/12
• Maximum tuition fee for a publicly funded course: £3,375• Students can have a non-means tested loan to cover the full
fee amount
• Fees are paid directly to the HEI
• Fees increase each year (in 2010/11 they were £3,290)
• Fee loans are only repaid once student is earning over £15,000
pa
Loan amounts for 11/12
• ALL amounts have been frozen at 2010/11 rates
• Main loans are 72% non-means tested, 28% means tested
• Reduced loans are available to students on sandwich years
and to some students who are in receipt of an NHS Bursary
Grant amounts for 11/12
• Frozen at 2010/11 rates; maximum maintenance grant: £2,906
• Grant is fully means tested
• Grant is non-repayable
• Maintenance loan is reduced by 50p for each £1 of grant
payable
Loan & Grant thresholds 11/12
• Households with total income under £25,000 will be eligible to
receive full grant and non-means tested loan
• Households with total income between £25,000 and £50,020
will be eligible to receive a partial grant and partial means
tested loan
• Households with total income between £50,778 and £57,708
will not be eligible to receive a grant, but may receive a partial
means tested loan
• Households with income in excess of £57,708 will only be
eligible to receive a non-means tested loanNote:The figures shown are based on a student living away from home and studying outside of London. Different thresholds will apply to those students living at home during their studies and those living/studying in London
H/hold income
Maintenance Grant
Maintenance Loan
Total support
£25,000 £2,906 £3,497 £6,403
£30,000 £1,906 £3,997 £5,903
£34,000 £1,106 £4,397 £5,503
£40,000 £711 £4,595 £5,306
£50,020 £50 £4,925 £4,975
£55,000 £0 £4,106 £4,106
£60,000 £0 £3,564 £3,564
Note:The figures shown are based on a student living away from home and studying outside of London. Different thresholds will apply to those students living at home during their studies and those living/studying in London
Max. Loan£4,950
Min. Loan£3,564
25k
30k
34k
40k
£3,497
£3,997
£4,397
£4,595
45k
50k
50,708
55k
57,778
60k
70k +
£4,760
£4,925
£4,950
£4,106
£3,564
£3,564
£3,564
£50
£381
£711
£1,106
£1,906
£2,906 £6,403
£5,506
£5,503
£5,306
£5,141
£4,975
£4,950
£4,106
£3,564
£3,564
£3,564
Note:The figures shown are based on a student living away from home and studying outside of London. Different thresholds will apply to those students living at home during their studies and those living/studying in London
Other help in 11/12
• Long Courses Loan: Extra means tested loan where study >
30 weeks
• Bursaries: Minimum of £338 (if qualify for full grant & charged
max fees)
• Parents Learning Allowance: Maximum of £1,508 (means
tested)
• Childcare Grant: 85% of actual costs (subject to limits &
means test)
• Adult Dependant Grant: £2,642 (means tested)
• Special Support Grant: Replaces maintenance grant for
some students
• Care Leavers Grant: Speak to your Local Authority (fact
sheet)
• Other local support…. Investigate!
• Help towards the additional costs that a student may be obliged to incur as a result of their impairment, health condition or specific learning difficulty
• In addition to the standard student finance package
• Does not have to be repaid
• Is not affected by the household income
• Looks at the specific needs of the individual in relation to their studies
See Fact sheet
Disabled Students Allowance
DSAs continued
AllowancePart-time maximum support
Full-time maximum Support
Frequency of Payment
Non-medical personal helper £15,390 £20,520 Annual
Specialist equipment £5,161 £5,161 Duration of course
Other disability-related expenditure £1,293 £1,724 Annual
Disability-related travel No Limit – reasonable spending can be claimed
Full and part-time disabled postgraduate students can receive up to £10,260 a year
The Customer Journey
DesignDesign
Customer Journey
Spring
Application
Autumn
Research
Summer
Processing
Term 1
Payment
How & when do I apply ?
What could I get ?
When will I get it ?
When do I pay it back ?
Consistent High-Quality IAG
Support from Practitioners
Research
Research
www.direct.gov.uk/studentfinance
Other Research Tools
• UCAS Conventions
• Directgov Website
• Printed Literature
Research
ApplyOnline
Online Application Process• Login via: www.direct.gov.uk/studentfinance
• Register details online
• Customer Reference Number (CRN) allocated
• Choose password and secret answer
• Submit application online and send in supporting evidence:
Financial details (prior year tax) Identity checking (data share with IPS) Non-means tested support paid to applicant where financial
details remain outstanding at course start
• Track application progress via ‘My Account’
www.direct.gov.uk/studentfinance
Adviser application tools
• All available on the Practitioner Website:
– Mock Account– CoC My Account Demo– Screen Videos of Applications
• I can come and take you through these in more detail
http://practitioners.studentfinanceengland.co.uk
Research
ApplicationProcessing
How to get things right!• Send in all your evidence and your sponsors evidence straight
away
• Evidence Fact Sheet on Directgov
• Make sure everything you send us has your CRN on it
• It can take a couple of days before we scan everything you’ve
sent and it appears on the system, so please be patient
• We will hang on to original documents for up to 6 weeks, just
in case we need to refer to them (for example, if we get a bad
scanned image)
• If you want to check the progress of your application, use ‘My
Account’
www.direct.gov.uk/studentfinance
Research
Consent To Share
Consent to Share
• Consent to share (CTS or C2S) allows a customer to grant a third party permission to discuss their details and data with us.
• There are three different types of Consent to Share, depending on what is being shared and with whom:
– Bursary Consent to Share– DSA1 Consent to Share– 3rd Party (General) Consent to Share
Bursary Consent
• Consent given on online or paper application (PN1)
• Universities and colleges use the information held by Students Loans Company to determine eligibility and entitlement to bursaries and/or scholarships to their students.
• We will share the relevant information, unless the customer indicates that they do not wish to do so on the application (online or paper)
• Opting out will delay any bursary payment due
DSA1 Consent• Consent to share on a DSA1 application form (short or long)
allows Universities/Colleges, DSA Needs Assessors and Suppliers of Equipment access to information on that form
• Universities or Colleges and DSA Needs Assessor may need to exchange information about an application to ensure the student gets the help and support that they need
• We will share the relevant information, unless the customer indicates that they do not wish to do so on the DSA1 form
• Opting out could delay arrangements being put in place – thestudent would have to liaise with all parties
3rd Party (General) Consent
• This is consent given by the student to allow us to share information with staff in general at up to two institutions
• Does not allow sharing of information regarding disability
• Could be a number of reasons: – travel – Financial– ongoing issues– personal preference (that someone else discusses their
application with us)
3rd Party (General) Consent cont.• A student can contact the us by phone or put their request in
writing. They will need to provide the following details for the person they want to grant consent to share to:
– Relationship– Full Name (or University or College name)– Password– Duration of the Consent to Share (this can be open ended
if required)
• The advisor/assessor will then record these details for use when staff from the nominated institution wish to discuss an application.
• The institution is responsible for safeguarding the details
Research
If thingschange…
Things a student can change:• Bank Details
• Address
• Course and/or HEI
• Any personal details (up until the point of assessment)
• Any post-assessment changes need to be actioned traditionally
Change of Circumstances Form
Research
GettingPaid!
Payment process for 11/12• Student Finance is paid in 3 instalments
• Maintenance loan and any grant entitlements are paid together
• The 1st instalment triggered by enrolment
• The 2nd & 3rd instalments are automatically paid at the start of each
subsequent term
• Loan & Grant are paid directly into the students bank account
• Fees are paid directly to the HEI
Student Finance letter:
• Colour coded to illustrate separate payments to HEI and student
• Securely confirms bank account
• Provides a breakdown of the calculation
• Additional sections to clearly explain next steps to receiving payment
Repayments
Loan Repayment
• Repayments are collected through tax system
• Starts in the April after graduation
• Only repay if earning above £15,000 per annum or £1,250 per
month gross
• Repayments are based on how much you earn, not how much
you owe
• ICR loans taken A/Y 05/06 or before written off when student
aged 65
• ICR loans taken A/Y 06/07 or after written off after 25 years
Income each year before tax
Monthly salaryApproximate
monthly repayment
up to £15,000 Below £1,250 0
£16,000 £1,333 £7
£18,000 £1,500 £22
£21,000 £1,750 £45
£24,000 £2,000 £67
£27,000 £2,250 £90
£30,000 £2,500 £112
Loan Repayment continued
Repayment continued
Mo
nth
ly
rep
aym
ent
£7.50
£0
£10
£20
£30
£40
£50
£60
£70
£80
Annual salary
£0
£15,000 £19,000 £21,000£17,000 £25,000£23,000
£15
£22.5
£37.5
£45
£30
£52.5
£67
£75
£60
9%
Additional Info
• 0% interest charged 1st Sept 2009 to 31st Aug 2010
• Do still pay if abroad
• Can make additional repayments at any time
• Calculate balance at
www.studentloanrepayment.co.uk
Further Info on repayment
Customer Care Team:
0141 243 3686
www.studentloanrepayment.co.uk
IAG Resources
5 IAG Channels
• Website:
• CSO: 0845 300 5090
• Support & Signposting from Practitioners
• Social Media:
• Literature:
IAG Support for Students
• Service updates
• Deadline updates
• Application guidance
• Evidence return estimates
Social Media
Prompt to apply online
• Printed product encouraging all
customers to apply online in
2011/12
• Available for download or order via
Practitioner Website
(mock up)NB. Availability of printed literature is yet to be confirmed for 2011/12
IAG Resources for Practitioners
IAG Support for Practitioners
• Practitioners Website – home of ALL our Practitioner resources
• Practitioners Helpline Team
• Practitioners Pack
• Quality Standards Materials
• Student Finance Consultant
Practitioners’ Website
www.practitioners.studentfinanceengland.co
.uk
Comprehensive up-to-date information about
student finance
Wide range of resources to
download or order
IAG Quality Standards Materials• Materials developed with Practitioners
• Linked to national IAG Quality Standards used
by Ofsted (fully cross-referenced)
• Resources ready to use with students:- Lesson Plan- 2x scripted PowerPoint presentations
PowerPoint Presentations• Series of short presentation modules
• Fully scripted, ready to use with students
• Can be incorporated into your materials
• Range of topics:- Core presentation (full-time support)- DSA- Eligibility & Financial Assessment- Main Products- Part-time support- Supplementary Grants
Practitioner Pack & Fact Sheets
• Practitioner Pack: comprehensive overview
• Fact Sheets for particular groups e.g.- NHS & Social Work students- Disabled students- Care leavers
• Electronic format – latest versions online
• Can be incorporated into your materials
• Designed for use as• Quick reference guides• Handouts for events
Application Walkthrough & Demo
• Developed following multiple requests from Practitioners to Student Finance Consultants
• Two resources:
(1) Series of Online Videos: walkthrough of different stages of application process
(2) Interactive Demonstration Account which can be downloaded and used offline
Part-time Calculator
• Downloadable Excel spreadsheet
• Can be used with students to provide them with a personalised estimate of support
Resources which can be ordered• Customer Information Pack:
– Guide to Financial Support
– Promotional Items
– Prompt to Apply Online
– Step-by-Step Guide to Applying
NB. Printed resources for 11/12 are yet to be confirmed
Telephone Support:
• Practitioner Helpline Team (regulation experts)
– 9am to 4pm Monday to Friday
• Specialist Teams (DSA, Childcare etc)
• Regional Consultant:
- Mock Account training
- Specialist training on resources
- IAG Quality Standards materials
http://www.slc.co.uk
Stakeholder and DSA Bulletins
Fortnightly updates on national processing figures
2011/12 Key Messages
• Do your research early
• Don’t wait until you know where you’re going before applying
• Apply online from Spring 2011
• Send in your signature & your evidence promptly
• Let us know straight away if anything changes
• Make use of ‘My Account’
Online support
Students, Parents & Partners
Customer website
www.direct.gov.uk/studentfinance
Practitioners
Practitioner website
www.practitioners.studentfinanceengland.co.uk
Practitioner helpline
Telephone support
Students & Sponsors
Customer helpline 0845 300 5090
Expert AdvicePractitioner
helpline 0845 602 0583
Twenty Questions
Student Finance
Twenty Questions
1 2 3 4 5
6 7 8 9 10
11 12 13 14 15
16 17 18 19 20
1. What will the maximum fee loan amount be in 2011/12?
1. What will the maximum fee loan amount be in 2011/12?
£3,375
2. What will the minimum bursary be in 2011/12 (assuming full fees)
2. What will the minimum bursary be in 2011/12 (assuming full fees)
£338
3. Students only start repaying their loan when they’re earning how much?
3. Students only start repaying their loan when they’re earning how much?
£15,000 per annum
4. Must a student know where they are going before applying for finance?
4. Must a student know where they are going before applying for finance?
Absolutely not! Apply as early as possible!! They must put a course and HEI on their
application, but it can just be one of their preferences at this stage - they can let us know if anything changes later.
5. Can a Practitioner call SFE to talk about a students application?
5. Can a Practitioner call SFE to talk about a students application?
Yes, but we can only discuss details with you if the student has given ‘consent to share’
6. How can a student check to see how their application is progressing?
6. How can a student check to see how their application is progressing?
Log into ‘My Account’ through Directgov. This will be quicker and easier than phoning.
7. What tool can students use to see how much finance they could get?
7. What tool can students use to see how much finance they could get?
Student Finance Calculator on the Directgov Website
8. When do students get their first installment of loan and/or grant?
8. When do students get their first installment of loan and/or grant?
After they have enrolled and their university of college have confirmed attendance
9. How is student finance paid to the student?
9. How is student finance paid to the student?
Directly into their bank account by BACS. The first installment is triggered by enrollment, the second and third installments are at the start of each subsequent term.
10. How can a student tell us of any changes to their application details?
10. How can a student tell us of any changes to their application details?
Some changes they can tell us about online, through ‘My Account’. Or they can download and send us a ‘Change of Circumstances’ form - available on Directgov.
It’s important they tell us of any changes, especially if they change the HEI they are going to - if they don’t then it could hold up their frist Loan & Grant payment.
11. How and When should students apply for their student finance?
11. How and When should students apply for their student finance?
Online and as early as possible! We expect the service to launch in early spring 2011.
12. How can a Practitioner keep up to date with all the latest news?
12. How can a Practitioner keep up to date with all the latest news?
Make sure your Student Finance Consultant has your details! You can also register for updates through the Practitioners Website.
13. If a student applies online, must their sponsors info also go online?
13. If a student applies online, must their sponsors info also go online?
No, although this is the quickest and easiest way for a sponsor to provide their details.
14. What things can a student can do to help us process their application?
14. What things can a student can do to help us process their application?
Make sure they apply early Check to see what they and their sponsors
need to send us Send in all the evidence together, as soon as
possible after applying Include their CRN with everything they send
us
15. What things can a student access themselves through ‘My Account’?
15. What things can a student access themselves through ‘My Account’?
Change their own Bank Details Change their Address Print off any correspondence we have sent View their Payments See the status of their Application Access the Online Change of Circumstances Change their Security Details & Profile
16. How many people/institutions can a student give ‘Consent to Share’ to?
16. How many people/institutions can a student give ‘Consent to Share’ to?
In theory they can register as many as they like, but they can only have two ‘live’ at any one time
17. What tax year would we use to assess a 2011/12 applicant?
17. What tax year would we use to assess a 2011/12 applicant?
Tax year ended 5th April 2010. All students must provide this, even if they want to apply for a current income assessment
18. Student Loans taken out after 2006 are written off after how many years?
18. Student Loans taken out after 2006 are written off after how many years?
25 years. Students who took out a loan before 2006 will repay until they reach 65 years of age.
19. What if a student hasn’t decided if HE is for them - should they apply?
19. What if a student hasn’t decided if HE is for them - should they apply?
Absolutely! Applying only puts the funding in place - they won’t incur any debt or receive any payments unless they enroll at an HEI. If they decide not to go they can just let us know and we will cancel their support.
20. How important is the Online Declaration form?
20. How important is the Online Declaration form?
Very important! Even if a student has applied on time and sent us all the evidence we need, we can’t make any payments to them until we have received a signed online declaration form. We must also have their NINO before we can make payments.
Any Questions
