The ‘F’ Word:Student Finance 2010

Ian Summers-NobleSenior Student Adviser

Student Services

Agenda• Overview of Student Support funding for

undergraduate students– Full-time - Tuition Fees, Grants, Loans, Bursaries...– Part-time – Fees Grant and Course Grant

• Issues for Student Finance Advice– Independent Status, Residency, ELQs, previous study,

hardship

Full Time Undergraduate

Funding available• Tuition Fees

– £3,290 in 2010/11– Tuition Fee Loan available (non income assessed)

• Maintenance Grant / Special Support Grant– Max £2,906 if ‘household income’ is £25k pa or less (partial grant up

to income of £50,020 pa)– Non repayable– Special Support Grant – paid ‘on top’ of Loan and not taken as income

for means tested benefits• Maintenance Loan

– Max £4,950 (elsewhere) or £3838 (parental home) – 28% income assessed

Household Income

25k 30k 35k 40k 45k 50k 55k 60k 65k 70k

Student Funding 2010

£1,000

£2,000

£3,000

£4,000

£5,000

£6,000

£7,000

All students should have access to at least £4,950

Living away from home outside London

Household Income

25k 30k 35k 40k 45k 50k 55k 60k 65k 70k

Student Funding 2010

£1,000

£2,000

£3,000

£4,000

£5,000

£6,000

£7,000

Living away from home outside London

Maintenance Loan

Maintenance Grant

c£34K

Household Income

25k 30k 35k 40k 45k 50k 55k 60k 65k 70k

Student Funding 2010

£1,000

£2,000

£3,000

£4,000

£5,000

£6,000

£7,000

Living away from home outside London

c£51K

Household Income

25k 30k 35k 40k 45k 50k 55k 60k 65k 70k

Student Funding 2010

£1,000

£2,000

£3,000

£4,000

£5,000

£6,000

£7,000

Living away from home outside London

Parental Contribution Max £1,386

Household Income

25k 30k 35k 40k 45k 50k 55k 60k 65k 70k

Student Funding 2010

£1,000

£2,000

£3,000

£4,000

£5,000

£6,000

£7,000

Living away from home outside London

• University Funding

Teesside University Bursaries

• £750 per year paid every year that student is liable for the full tuition fees

• If they receive EMA whilst at college, or• If their household income is £31,000 or less at

the time of assessment

Teesside University Care Leavers Bursary

•Care leavers bursary of £1,000 per year for those students who come to us from a care background

•Contact: Katie Sykes (Student Adviser)

• 01642 342297 or K.Sykes@tees.ac.uk

Scholarship for Excellence• 40 Scholarships of £4,000 per year• Linked to outstanding academic achievement

prior to University• Further detail will be publicised on University

website www.tees.ac.uk

Additional Government Funding• Students with children or adult dependants

– Childcare Grant• Up to 85% of actual cost• Registered or Approved Childcare• Means tested

– Adult Dependants Grant• Financially dependant spouse/partner• Means Tested• Max £2,642

– Parents Learning Allowance• Parents with dependant children• Means tested• Max £1,508

Additional Government Funding• Disabled Students Allowance (DSA)

– Specialist equipment allowance (up to £5161 for the course)– Non-medical helpers allowance (up to £20,520 per year)– General disabled students’ allowance (up to £1724 per year)– Extra travel costs– Not income assessed

• Contact Disability Services– 01642 342277 or disability@tees.ac.uk

Application Process• Apply as soon as possible

• Deadline 25th June for new students!• Apply to Student Finance England – based in

Darlington• Link from UCAS, or• www.direct.gov.uk/StudentFinance• Online calculator• Apply online or download PN1 form

Student Loan Repayments• Debt is generally ‘unhealthy’ but a Student Loan has

many different characteristics to high street loans• Interest rates are linked to Retail Price Index

– 0% in 2009/10 (awaiting announcement of 2010/11 rate)

– What you pay back is worth what you borrowed– Pay back is more like a tax than loan – it is based on

income rather how much has been borrowed– Amount outstanding 25 years after repayments

expected to begin is written off

• 10k

• 15k

• 18k

• 20k

• 30k

How much you earn

Less than £15,000

Percentage of Income

0%

Monthly Repayments

£0

Weekly Repayments

£0

STUDENT LOAN REPAYMENTS

• 10k

• 15k

• 18k

• 20k

• 30k

How much you earn

£16,0009% of £1,000

Payback 9% of earnings above £15,000

Percentage of Income

£90 (0.6%)

Monthly Repayments

£7.50

Weekly Repayments

£1.73

STUDENT LOAN REPAYMENTS

• 10k

• 15k

• 18k

• 20k

• 30k

How much you earn

£22,000

9% of £7,000

Percentage of Income

£630 (2%)

Monthly Repayments

£52.50

Weekly Repayments

£12.11

STUDENT LOAN REPAYMENTS

Part Time Undergraduate

Basic Eligibility• Definition of Part Time study

– University/college classes course as “part time” (even if the course is 120 credits per year)

• Student must be able to complete the course in no more than 2x the length of a full-time equivalent course

• Funding not available if student already holds a degree qualification or equivalent level qualification

• Students are financially independent of parents no matter what their age

Intensity of Study• Determines the rate of Fee Grant• Based on how many credits students are

studying compared to the full time equivalent course (fte)

• EG 60 credits = 50%• Part time course can be 100% of FTE – 120

credits a year

Funding Available• Depends on student’s and spouse/partner’s taxable

income• Fees grant of up to….

• £820 if course is 50 - 59% fte• £985 if course is 60% - 74% fte• £1,230 if course is 75% + fte

• Study grant of up to £265

Income Assessment• Income threshold £16,845 (single student with no

dependants)• Income threshold increases….

– £2,000 for partner– £2,000 for 1st Child– £1,000 for each other child

• E.G. threshold for student with partner and one child– £16,845 + £2,000 + £2,000 = £20,845

Income Assessment Cont’d..• Full fees and study grant if income is below relevant

threshold• Income above threshold reduces fees grant and then

study grant• For a single student with no children, a partial fees

grant is payable up to an income of £25,420• No fees or course grant if income exceeds

£28,065 for single student

Fee Grant Payable at 50 – 59% fte

£100

£200

£300

£400

£500

£600

£700

£800

£17K £18K £19K £25K £26K£23K £24K£22K£21K£20K£16K

@ £25,420pa = Fee Grant of £50

£820

@ £16,845pa = Fee Grant of £770

@ £20,000pa = Fee Grant of £505

Application Process• PTG1 form • Should be available from mid August• University/College must complete Section 6 at the

beginning of academic year to confirm….• Course is designated• Student is enrolled on the course• Course is at least 1 years duration• Course can be completed in less than twice the length of the full

time equivalent• The amount of the fees• Intensity of study (%fte)

Part-time Teacher Training Courses• Until 2010 students on p/t PGCE/CertEd/DTLLS

courses applied for f/t loans and grants via the PN1 form

• From September 2010 they apply for the p/t grants via the PTG1 form

• This means that a student’s own earnings (as well as partner’s) are taken into account

Issues for Student Finance Advice

‘Independent Status’• Age 25+ at 1 September• Have been married or in civil partnership• Have responsibility for child(ren)• Have been financially self-supporting for at

least 3 years before start of course (£7,500 per year income according to SFE)

• ‘Irreconcilably estranged’ from parents

Eligibility – Residence issues• Main residence criteria:• ‘Settled status’ in the UK• ‘Ordinarily’ resident in the UK for at least 3 years

before the start of the course (1 September)• Actually ordinarily resident on 1 September• Ordinarily resident in the UK other than “wholly or

mainly for the purpose of receiving full-time education”

Eligibility – Residence issues• Main exceptions to the main rule:• Refugees or family members • Those (and family members) not given refugee

status but given “leave to enter or remain” following an asylum application

• EEA Migrant Workers (currently controversial!)• EEA self-employed person• Swiss workers/self-employed

Eligibility – Residence issues• EC nationals (and family members) who have been

ordinarily resident in the EEA for 3 years before the start of the course are eligible for Tuition Fee Loan only (and Teesside Bursary)

• EC nationals who have been ordinarily resident in the UK for 3 years before the start of the course (“Bidar Rule”)

ELQs• Prior to 2009/10, no funding (except ‘targeted

support’) if student already held honours degree• From 2009/10, no funding (except ‘targeted

support’) if students are on a second F/T or P/T course that is equivalent to, or lower than, their first HE qualification

• Whether that 1st qualification was gained in the UK or overseas

ELQs exceptions• Initial Teacher Training courses – PGCE (fee and

maintenance support)• 2nd degrees in Medicine, Dentistry, Veterinary Science,

Architecture and Social Work (maintenance loan and targeted support only)

• 2nd degrees in Allied Health Professions (reduced rate maintenance loan)

• Funding is available for ‘top up’ from Foundation to Bachelors Degrees.

Number of years funding available• “Everyone is entitled to 4 years’ worth of student loans” – not

exactly.........• “Ordinary Duration” of the course plus one extra year if needed• In most cases....3+1=4• Full funding can therefore be available for first repeat years• If second repeat year needed, no Maintenance Grant/Special

Support Grant nor Tuition Fee Loan• “Part time attendance on a full-time course” = full-time funding (fees

depend on number of credits)• If repeat year is due to “compelling personal reasons” can be funded

without using up the +1

Previous Study• Attendance on a F/T course for which the student received funding

or was at a publicly funded institution (UK or abroad)• Part year (even 1 day) = 1 year previous study• OD+1-PC= number of years funding on current course• “Compelling Personal Reasons” (repeat years on previous course or

withdrawal from previous course due to CPR)• If student gained qualification through P/T study, the number of

years on this P/T course are counted as previous study• Years of attendance on P/T courses on which student did not

achieve a qualification are ignored.

Suspension of Studies• Student funding available for up to 60 days sickness

absence• Continuation of funding depends on the reason for

suspension – area of ‘discretion’ within the Regs• Needs to be evidenced• Still classed as student for Council Tax and Benefits

purposes during periods of suspension• JSA/HB from date student recovers from illness or caring

duties cease until earliest date can resume studies• Eligible for Access to Learning Fund

Overpayments• If a student withdraws/suspends any grant received will be

reassessed on a daily basis and ‘overpayments’ will be recovered.

• Students are obliged to notify SFE/SLC/LA when they withdraw/suspend – “backdating” suspension has been problematic.

• Child Care Grant – initially assessed on ‘guestimate’ of childcare costs and then reassessed when evidence of actual costs is submitted.

“Vulnerable Groups”• Special Support Grant and eligibility for some

welfare benefits (principally Housing Benefit)• Single Parents• Student Couples with children• Students eligible for the ‘disability premium’ in

Income Support or Housing Benefit (passporting benefits eg Disability Living Allowance)

Example - Lone Parent• Lone parent; child aged 5; Rent = £80 pw; 1st year in 2010/11:• Maintenance Loan £4950• Special Support Grant £2906*• University Bursary £ 750*• Parents Learning Allowance £1508*• Child Benefit (£20.30pw) £1056*• Child Tax Credit (c£54.56pw) £2845• Housing Benefit (c£76.42pw) £3974• Total

£17989

Plus Council Tax exemption, Income Support and maximum Housing Benefit in July/August , free school meals, help from Access to Learning Fund (at least ‘winter fuel’ and school uniform grant)

*Ignored in calculation of Income Support/Housing Benefit

Hardship and Debt• Hardship = Debt?• Debt = inevitable part of student life?• Good Debt vs Bad Debt:

www.moneysavingexpert.com• Money Management/Financial Literacy: • http://www.moneymadeclear.org.uk/• Debt:• http://www.nationaldebtline.co.uk/

Access to Learning Fund• A Hardship Fund from HEFCE• Grant for Living Costs = complex means-testing

including some ‘assumed’ costs and income• Some grants linked to GLC eg ‘winter fuel’, school

uniform grant• Special Requests – 20 years experience of

developing criteria for assistance with particular costs and hardship situation

• Can assist p/t students with study costs

Student Services Contacts• Chris Turner – External Relations Officer• Ian Summers-Noble – Senior Student Adviser• Student Finance Advisers:• Michael McTeague• Katie Sykes• Errol Theunissen• Student Funding Officer (ALF): Claire Waterhouse

Tel: (01642) 342277

Student Finance England• Student/general information and applications:• www.direct.gov.uk/studentfinance

• Specialist information for Advisers:• http://practitioners.studentfinanceengland.co.uk• Student Support Information Notes (SSINs)• Guidance Chapters• Practitioners Support: 0845 602 0583• SSIN_Queries@slc.co.uk

• Regional Finance Consultant: Steve Brown - 07827449279

(M)Any Questions?