www.gov.uk/studentfinance

2015/16STUDENT

FINANCE

UPDATE

B&FC Higher

Education

Advisors

Conference,

23.06.15

Jon LeggStudent Finance Adviser

(North West)

2015/16

SESSION CONTENTSi• Section 1 – Student Finance 2015/16

• Section 2 – Applications & Information; Future Developments

• Section 3 – Student Loan Repayments

• Section 4 – SFE Resources & Changes to SFE’s IAG support

2015/16

THE STUDENT FINANCE PACKAGE 2015/16*

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*Exceptions exist for certain groups of studentsi *The government has not yet made any announcements about the student finance package for the 2016/17 academic year

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• Universities and colleges* can charge new full-time students up to £9,000 per year in tuition fees

• Eligible students won’t have to pay any tuition fees up front*

• A Tuition Fee Loan is available to cover the fee charged by a university or college**

• A Tuition Fee Loan doesn’t depend on household income

• SFE pay any Tuition Fee Loan directly to a university or college

• The loan is repayable, but only when a student’s income is over £21,000

*Publicly funded institutions **Up to £6,000 for approved courses at private providers

TUITION FEES AND LOANSAN OVERVIEW

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Tuition fees will be paid to a HEP at three points in the academic year:

Liability date% of Tuition Fee Loan

student will be liable for

First day of term 1 25%

First day of term 2 25%

First day of term 3 50%

Interest on the loan will be charged from the day payment is made to the university/college, not from the liability date.i

TUITION FEES AND LOANSLIABILITY DATES

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• Maintenance support is available to help students with their living costs while in higher education

• There are two main types of support, Maintenance Loan (repayable) and Maintenance Grant (non-repayable)

• All eligible students are entitled to receive some Maintenance support

• The amount of Maintenance Loan a student gets depends on where they live and study

• Maintenance support is paid directly into a student’s bank account each term

MAINTENANCE SUPPORTAN OVERVIEW

i The maximum Maintenance Loan levels have been increased by 3.34% for 2015/16

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Full-Year Student*

65% Non Means Tested

35% Means Tested

Maximum Loan

Parental Home £2,967 £1,598 £4,565

Elsewhere £3,731 £2,009 £5,740

London £5,205 £2,804 £8,009

Overseas £4,433 £2,387 £6,820

i Additional loan may be available for any extra weeks of study if a course goes beyond 30 weeks in an academic year

*Lower rates are available to final year students

MAINTENANCE LOANMAXIMUM LEVELS 2015/16

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• The Maintenance Grant doesn’t have to be repaid

• How much grant a student gets depends on their household income (100% means tested)

Full Grant:£3,387

Partial Grant:(Min £50)

Household Income: Up to £25,000

Household Income: Up to £42,620

MAINTENANCE GRANTSUPPORT AND MEANS TESTING

Household income is the taxable earned and unearned incomeof the parents/partner a student lives with most of the time i

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If supporting an application for means tested student finance, SFE will need details of a student’s parents, partner or other sponsors household(taxable) income and National Insurance numbers

Taxable earned income includes*:• Wages, salaries, tips, and other taxable employee pay• Long-term disability benefits received prior to minimum retirement age• Net earnings from self-employment

Taxable unearned income includes*:• Interest from savings (only the annual summary is required)• Benefits and Pensions• Rent from property or a room

i *More details/information can be found on the HMRC website: http://www.hmrc.gov.uk/incometax/taxable-income.htm

SUPPORTING AN APPLICATIONHOUSEHOLD INCOME

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Students are considered independent if they: (Amongst other criteria)

• Have care of a person under the age of 18

• Are 25 or over on the first day of the academic year

• Are permanently estranged from their parents

• Are leaving the care of the local authority

If over 25, have care of a young person, are married* or have supportedthemselves financially for 3 years before starting their HE course, parentalincome won’t be taken into account when assessing students entitlement

MAINTENANCE SUPPORTINDEPENDENT STUDENT STATUS

*If married or in a civil partnership, SFE will take into account the income of the student’s husband, wife or civil partneri

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Household Income

Maintenance Grant

Maintenance Loan Total

£25,000 & under £3,387 £4,047 £7,434

£30,000 £2,441 £4,520 £6,961

£35,000 £1,494 £4,993 £6,487

£40,000 £547 £5,467 £6,014

£42,620 £50 £5,715 £5,765

£42,875 £0 £5,740 £5,740

£50,000 £0 £4,998 £4,998

£62,143 & over £0 £3,731 £3,731

COMBINED MAINTENANCE SUPPORTLIVING AWAY FROM HOME OUTSIDE LONDON

The calculator found on gov.uk/studentfinance can provide students with an estimate of their student finance entitlementi

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ADDITIONAL SUPPORTSECTION 1

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Many universities and colleges offer financial support to their studentsthrough bursaries and scholarships:

Bursaries:• Linked to personal circumstances and often, household income• Awards can include discounted tuition fees, accommodation or cash

Scholarships:• Linked to academic results or ability in an area such as sport or music• Can be subject specific and are usually limited in numbers

EXTRA SUPPORTBURSARIES AND SCHOLARSHIPS

Students should check university/college websites and ask at open days to see what they offer and how/when applyi

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ADDITIONAL SUPPORT

• Have children or adult dependent on them

• Have a disability, long-term health condition, mental-health condition or specific learning difficulty

• Study overseas as part of their UK based course

• Have been in the care of their Local Authority

• Study an NHS or Social Work course

NHS courses include:nursing, midwifery, physiotherapy, speech and language therapy, dietetics, radiography , the later stages of medicine and dentistry

For more information on eligibility and applications for NHSsupport go to: www.nhsbsa.nhs.uk/students

EXTRA SUPPORTEXTRA HELP MAY ALSO BE AVAILABLE IF STUDENTS….

i

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DISABLED STUDENTS’ ALLOWANCES

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Disabled Students’ Allowances provide help towards the additional coststhat a student may face as result of their disability, long-term healthcondition, mental-health condition or specific learning difficulty:

DSAs Support:• Is available in addition to the standard student finance package,

• Does not have to be repaid,

• Is not affected by household income,

• Looks at the specific needs of the individual in relation to their circumstances and studies

EXTRA SUPPORTDISABLED STUDENTS’ ALLOWANCES

i Students should apply for their DSAs’ as soon as possible, theprocess can be triggered from the main online application form

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AllowancePart-Time Maximum Support

Full-Time Maximum Support

Non-medical personal helper £15,543 £20,725

Per academic year

Specialist equipment £5,212 £5,212Duration of

Course

Other disability-related expenditure £1,305 £1,741

Per academic year

Disability related travelNo Limit – Reasonable spending can

be claimed

EXTRA SUPPORTDISABLED STUDENTS’ ALLOWANCES

i For both full-time and part-time postgraduate students there is a single allowance of up to £10,362 a year

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DISABLED STUDENTS ALLOWANCESOVERVIEW OF CHANGES FOR 2015/16

www.practitioners.slc.co.uk/media/893396/1516_policy_changes_-_fact_sheet.pdf

See also: www.practitioners.slc.co.uk/products/disabled-students'-allowances/dsas-updates-for-practitioners.aspx

2015/16

NHS & SOCIAL WORK STUDENTS*

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*2014/15 Policy figures used for illustration awaiting 2015/16announcements

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Students must be accepted for an NHS funded place on a full or parttime course which leads to professional registration as a:

• Doctor or dentist (they will be eligible for an NHS bursary after the 4th year of their course)

• Chiropodist (including podiatrist), dietician, occupational therapist, orthoptist, physiotherapist, prosthetist, and orthotist, radiographer, radiotherapist, audiologist or a speech and language therapist

• Dental hygienist or dental therapist

• Nurse, midwife or operating department practitioner

EXTRA SUPPORTELIGIBLE NHS COURSES

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NHS Support:Students training for eligible courses may be able to get a bursaryfrom the NHS:

• A bursary is a yearly payment to help with living costs, it’s paid each month and doesn’t have to be paid back

• Full-time students on NHS degrees can also apply for a fixed grant of £1000 per year

SFE Support:Full-time NHS students can also apply to Student Finance England for a reduced rate Maintenance Loan which doesn’t depend on income

i More detailed information is available at:www.nhsbsa.nhs.uk/Students and www.gov.uk/nhs-bursaries

EXTRA SUPPORTFOR NHS COURSE STUDENTS

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Non means-tested Grant

Means tested Bursary

Non means-tested Loan

London £1,000 £3,159 £3,263

Not London £1,000 £2,617 £2,324

With Parents £1,000 £2,185 £1,744

Non means-tested Grant

Means tested Bursary

Non means-tested Loan

London £1,000 £5,513 £3,263

Not London £1,000 £4,443 £2,324

With Parents £1,000 £3,395 £1,744

NHS Degrees up to 30 weeks (2013/14 figures)

NHS Degrees up to 45 weeks (2013/14 figures)

EXTRA SUPPORTFOR NHS COURSE STUDENTS

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Fee Support:

NHS pays non-medical course fees (Nursing, midwifery etc..)

Medicine and Dentistry:• Arrangements differ depending on year of study and pathway• Tuition Fee Loan will be available from SFE• NHS usually pays final year(s) tuition fees

Other Support:

Allowances for disabled students and students with dependent adults

and children are available from the NHS

i Students can also claim help with travel costs to a placements, for costs additional to those incurred travelling to their university

EXTRA SUPPORTFOR NHS COURSE STUDENTS

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SFE Support:Undergraduate Social Work students can apply for the standard packageof support. Postgraduate students receive no support, other than DSAs’

NHS Support:Undergraduate and postgraduate students may be eligible for a bursaryfrom the NHS. However there are policy changes from 2013/14:

• No new undergraduates will receive a bursary until their second year• For 2014/15 the cap was set at 2500 undergraduate and 1500

postgraduate bursaries• ‘The Department is unable to give figures for the 2015 academic year’*

EXTRA SUPPORTFOR SOCIAL WORK COURSE STUDENTS

i *All expenditure is currently being reviewed, for more information go to - www.nhsbsa.nhs.uk/825.aspx

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The bursary is available in undergraduate years 2 and 3 of study whenstudents undertake placements

The following process applies: • Students will need to be shortlisted by the HEI• HEIs will notify the NHS Business Services Authority of the shortlisted

students • Students will apply to the NHS for the bursary*

Undergraduate Bursary London Outside London

Subject to Tuition Fees £5,262.50 £4,862.50

Placement travel Allowance (non-bursary recipients)

£862.50 862.50

EXTRA SUPPORTFOR SOCIAL WORK COURSE STUDENTS

i *This can be done prior to being nominated by HEI for a bursary;and NHS will assess eligibility for the bursary and pay students

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SUPPORT FOR COURSES OF INITIAL TEACHER TRAINING

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There are many different routes into teaching, including undergraduate,postgraduate and employment-based options

• Full Time Initial Teacher Training (ITT) courses whether undergraduate or postgraduate attract funding in the same way as other undergrad degree programmes

• Full-time students will be able to apply for student finance for fees and living costs in the same way as undergraduates on any other course

• Part-time ITT courses consisting of periods of study during each academic year of less than 300 hours, will be eligible for part-time student support (Tuition Fee Loan)

EXTRA SUPPORTINITIAL TEACHER TRAINING STUDENTS

i Postgraduates can apply for a training bursary from the TeachingAgency, how much depends on teaching subject and degree class

2015/16

POSTGRADUATE LOANS:Government announcements

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The 2014 Autumn Statement introduced a new offer of income contingentloans for those under 30 years old wishing to undertake a postgraduatetaught masters in any subject

• The loans will be available irrespective of the duration of study, or whether they are studying full-time or part-time

• The loans, of up to £10,000, are planned to be available from 2016-17and will be repaid concurrently with any existing undergraduate loans

• This is expected to benefit around 40,000 students, and provide around10,000 the opportunity to undertake postgraduate study each year

POSTGRADUATE LOANSANNOUNCEMENT #1

i Until these loans are in place, HEFCE will allocate £50 millionin15/16 for universities to offer post grad bursaries

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In the 2015 Budget, the Chancellor made a further announcement regarding postgraduate loans:

• Income contingent loans of up to £25,000 will be made available to research-based masters and PhD students

• Eligibility rules, timescales etc are yet to be announced

• A consultation is taking place with research councils, universities and industry to examine how best to design these loans (consultation was due to end 29.05.2015)

POSTGRADUATE LOANSANNOUNCEMENT #2

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SHARIA LAW COMPLIANT SUPPORT*

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*It is unlikely that any Alternative Finance product will be available before academic year 2016/17

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The need for an Alternative Finance Product

Student loans issued after Sept 2012 bear a real rate of interest aboveinflation and concerns were raised that some religious groups, particularlyMuslims, may feel that charging such an interest rate is incompatible withtheir beliefs • The Government evaluated five potential Alternative Finance products

based on financial structures already used in Islamic finance

• The suitability of these products was based upon their ability to meet the key objectives the Government believes a Sharia-compliant student finance product, needs to achieve

SHARIA LAW COMPLIANT SUPPORTCHOOSING A FINANCE PRODUCT

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• Repayments and debt levels must be identical to a traditional loan, so students who chose the Alternative Finance product would be inno worse or better position than those who took out a traditional loan

• Making repayments should be as easy for students with the Alternative Finance product as it is for those students with traditional loans*

• The Alternative Finance product must be applied for in the same way as a traditional loan to ensure no extra burden for students

• The finance product should be transparent in its workings and easy forpotential students to understand

SHARIA LAW COMPLIANT SUPPORTSUITABILITY CRITERIA

i *Therefore it should be possible for repayments to be made directly through the UK tax system

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The finance product identified is based on the ‘Takaful’ structure used inIslamic finance to allow groups of people to cooperate to provide mutualfinance assistance to other members of the group

• Students participating in the fund would not be borrowing money andpaying it back with interest to a third party (which would not be compliantwith Sharia law)

• The contract will be based upon a promise guaranteeing that students will repay a Takaful contribution (seen as a charitable contribution from a Sharia perspective) for the benefit of the members of the fund

• Monies will be released once the contract is signed

SHARIA LAW COMPLIANT SUPPORTFINANCE MODEL

i It is unlikely that any Alternative Finance product will be available before academic year 2016/17

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Repayment will be made to the fund once students are earning above theset threshold, which would be at the same level as for traditional studentloans

• The contribution paid back into the fund will help future students benefit by allowing them to complete their studies as the original student did

• The mutual basis of this structure (members of the fund helping each otherto attend higher education), make this model acceptable under Sharia-law

• This is because the lender/borrower relationship which results in payment of interest by the students does not exist in this model

SHARIA LAW COMPLIANT SUPPORTREPAYMENTS

i See www.gov.uk/government/consultations/sharia-compliant-student-finance for the consultation papers

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APPLICATIONS & INFORMATIONSECTION 2

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www.gov.uk/studentfinance

GOV.UKFOR MORE INFORMATION AND TO APPLY

2015/16 APPLICATIONS NOW LIVE (deadline was 31st May)

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Each year thousands of students apply late for their finance and have noway to pay for their course or accommodation, some even have to drop out!

Please encourage the students you work with to apply on time!

• It will take at least six weeks to process an application so apply early

• The easiest way to apply is online at gov.uk/studentfinance*

• Students don’t need a confirmed place at university or college to apply

• Apply with their first choice, they can change details later if necessary

STUDENT FINANCE APPLICATIONSKEY MESSAGE – APPLY EARLY

i *Students wishing to study at alternative providers may need to wait until HEFCE approve the course designation before applying

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• Make a note of their account log-in details and keep them safe

• Agree to share information from their application, this helps apply for many bursaries and some scholarships

• Make sure any evidence and information needed to support theirapplication is supplied first time (students and parent/partners)

• Submit an application even if there’s a delay in getting sponsor income details so some funding* will be available when they start their course

• Sign and return their online declaration form as soon as possible so as not to delay payments

STUDENT FINANCE APPLICATIONSGET IT RIGHT FIRST TIME – STUDENTS SHOULD…

i *Tuition Fee Loan and 65% of the maximum Maintenance Loan which are non means tested

2015/16

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www.thestudentroom.co.uk/studentfinance

www.twitter.com/sf_england

www.facebook.com/SFEngland

SFE ONLINEFOR MORE INFORMATION AND RESOURCES

2015/16

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www.youtube.com/SFEFILM

SFE ONLINESUITE OF VIDEOS, INCLUDING 3 ON HOW TO APPLY

2015/16

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Before starting an application, students should have the following to hand:

• Passport - SFE can check identity using valid UK passport details • University and course details• Bank account details and National Insurance number

The easiest way for parents or other sponsors to support a studentsapplication is online through GOV.UK, providing information including:

• National Insurance number(s)• Household income information (Based on prior tax year)• Details of other child dependants

82% of household income assessments are successful usingour VHI checking process and links with HMRCi

STUDENT FINANCE APPLICATIONSCOMPLETING AN APPLICATION

2015/16

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Financial information is needed for the tax year prior to when the student will start in higher education

• For students starting in Sept 2015 sponsors should submit financial information for the 2013/14 tax year

Supporting an application – Drop in income:If household income drops by 15% or more in the current tax year, SFE can reassess an application so a student may receive additional support

Submitting a Current Year Income form:• Support the student's application for finance as normal• Complete the (CYI) form with estimates of this financial year's details• Provide evidence to support estimates at the end of the current tax year

STUDENT FINANCE APPLICATIONSTAX YEAR USED FOR ASSESSMENTS

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STUDENT LOAN REPAYMENTSSECTION 3

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• Students won’t make repayments until their future income is over £21,000 a year gross (before tax)

• If they study a full-time course, they will be due to start repaying in the April after graduating from/leaving higher education

• They’ll repay 9% of their income over £21,000 and if employed, deductions will be made from their pay through the HMRC tax system*

• If their income falls to £21,000 or below their repayments will stop

• Any outstanding loan balance will be written off 30 years after entering repayment

STUDENT LOAN REPAYMENTSAN OVERVIEW

*If they move/work overseas, repayments will be 9% of any earnings over the threshold for the country they are living ini

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Income each year before tax

Income from which 9% is deducted

Monthly Repayment (Approx)

£21,000 £0 £0

£25,000 £4,000 £30

£30,000 £9,000 £67

£35,000 £14,000 £105

£40,000 £19,000 £142

£45,000 £24,000 £180

£50,000 £29,000 £217

£60,000 £39,000 £292

STUDENT LOAN REPAYMENTSTHE FIGURES

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Interest levels will depend on a students income and circumstances:

Interest rate is: Set at RPI Only Interest Rate:

RPI Only

During study until entering repayment

Income: Under £21,000

Interest Rate: Retail Price Index +3%

i The interest rate is updated once a year using the RPI figure from March which is carried forward and applied in September

Income: £21,000 to £41,000

Income: Over £41,000

Interest Rate: RPI + up to 3%

Interest Rate: RPI +3%

STUDENT LOAN REPAYMENTSTHE INTEREST

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If they will be overseas for more than 3 months, students will need tocomplete an Overseas Income Assessment Form to enable us to calculatehow much they need to repay

• Students should provide us with details of their circumstances, prospective Income and evidence of their income or means of support

• We will then send them a repayment schedule showing how much they need to pay each month

• The repayment amount is usually fixed for a 12 month period but students can apply for a reassessment of their repayments at any time if their income level changes

i The monthly payments will be based upon the earnings thresholdfor their destination country: www.studentloanrepayment.co.uk

STUDENT LOAN REPAYMENTSREPAYMENTS FROM OVERSEAS

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Interest is applied on the same principle as in the UK, RPI only if earning under the lower threshold, up to RPI +3% if earning over the upper threshold

Country ofResidence

Lower Income Threshold

Upper Income Threshold

Default Monthly Repayment

Australia £25,200 £49,200 £241.20

China £12,600 £24,600 £120.60

France, Germany, Italy £25,200 £49,200 £241.20

USA £21,000 £41,000 £201.00

STUDENT LOAN REPAYMENTSEXAMPLE INCOME THRESHOLDS – POST 2012 LOANS

i Default monthly repayment - Amount students would be liable to repay if they didn’t inform us of their actual income while overseas

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www.studentloanrepayment.co.uk

STUDENT LOAN REPAYMENTSDEDICATED WEBSITE

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SFE RESOURCESSECTION 4

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www.practitioners.slc.co.uk

PRACTITIONER RESOURCESDEDICATED WEBSITE

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Access and download our wide range of IAG resources including:

• Suite of Factsheets

• Series of Quick Guides

• PowerPoint Presentations

• Videos and Marketing Materials

All sorted by audience type tomake it easy to find what you need

i New resources will be added during the year, as the informationstudents need changes. Register/check back for updates

PRACTITIONER RESOURCESIAG MATERIALS

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Our quick guides highlight key informationstudents and parents need to know

Currently available:

• Student Finance Explained

• Dependants’ Grants

• Disabled Students’ Allowances

• Student Finance Explained for Parents

Available now to download or

order from the practitioner website

New Quick Guides now available to order or download:

• How to Apply• Repayment

Other Quick Guides: out of stock but can still be downloaded

PRACTITIONER RESOURCESQUICK GUIDES

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Our factsheets are designed to help youexplain student finance, covering keysubjects including:

• Student finance and eligibility

• Students with dependants

• Repayments

• Myths, facts and FAQ’s for parents

PRACTITIONER RESOURCESFACTSHEETS

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Training tool for practitioners, allowing you to view all the screensstudents and sponsors see in an online application :

PRACTITIONER RESOURCESAPPLICATION DEMO

• Applications for new and returningstudents

• Parent/partner applications

• Change of circumstances

• Regular updates and explanation of ‘Hot Topics’

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Student Finance Advisers:Our team of dedicated regional advisers work closely with key partners across England to deliver a range of Matrix accredited services including:

• Staff development through bespoke training, • Advice and support with SFE resources, policy and processes

If we can support you and your colleagues with any area of student finance IAG delivery, please do get in touch:

Contact details for your regional adviser can be found at:

www.practitioners.slc.co.uk/regional-support

i Practitioner Helpline: For detailed/complex regulatory advice and particularly complex assessment enquiries – 0300 100 0618

PRACTITIONER RESOURCESDEDICATED REGIONAL SUPPORT

2015/16

CHANGES TO SFE’S IAG SUPPORT

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• The current face to face training for pre-applicant delivery partners offered by the Student Finance IAG Team will change.

• In England the current team of nine regionally based Student Finance Advisers will be replaced by an online training service accessed via the existing practitioner’s website.

• A new team, Partner Services, is also being established. Part of its responsibility will be to provide face-to-face IAG training to HEI outreach and student advice teams and to 24+ Loan provider staff. This will be supported by five permanent team members.

SFE’S IAG SUPPORT FOR STAFFCHANGES TO OUR SERVICE: BACKGROUND

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Support to end of AY 14/15

Support during AY 15/16

Ongoing support throughout

Pre-Entry Delivery PartnersSchoolsAcademiesSixth Form Colleges 9x Student

Finance Advisers

providing face to face support

New online support via Practitioner

WebsiteInformation

and resources via

Practitioner Website

HE ProvidersUniversitiesFE Colleges with HE provision

5x IAG Partners Account Managers providing face to

face support24+ Course ProvidersFE Colleges with 24+ provisionLearning providers

SFE’S IAG SUPPORT FOR STAFFCHANGES TO OUR SERVICE: AN OVERVIEW

2015/16

ANY QUESTIONS??