www.gov.uk/studentfinance
STUDENT FINANCE ENGLANDHELOA Teacher and Adviser Conference
Thursday 15th May 2014
Chris Snowdon (Student Finance Adviser, East of England)
SESSION CONTENTSi• The Student Finance Information Team (SFIT)• The Student Finance Package• Looking Ahead to 2015/16• News and Updates• Applications & Information : Get it right first time• How Repayment Works?• Practitioner Resources
REGIONAL SUPPORTTHE STUDENT FINANCE INFORMATION TEAMi
• Provide training, updates CPD opportunities for staff and practitioners• Assist in providing student finance updates at appropriate events (parents)• Signposting to a range of free resources• Student finance mailing list (East of England specific)• Statement of Service
www.gov.uk/studentfinance
THE STUDENT FINANCE PACKAGE
• TUITION FEE LOANNon-Means Tested for whatever your being charged (up to £9000 max)
• MAINTENANCE LOANParents (max of £4418), Elsewhere (max of £5555), London (max of £7751) 65% non means tested, 35% means tested
• MAINTENANCE GRANTMeans Tested (non-repayable) grant of up to £3387
• ADDITIONAL SUPPORTStudent with children / Student with disabilities
• ...and don’t forget about bursaries and scholarships...
2014/15 AT A GLANCEWHAT IS AVAILABLE?
• TUITION FEE LOANMaintained at the same level as 2014/15 (max of £9000)
• MAINTENANCE LOANIncrease in maximum rate of Maintenance Loan in line with inflation (+3.34%)
• MAINTENANCE GRANTMaintained at the same level as 2014/15 (max of £3387)
• ADDITIONAL SUPPORT Increase in maximum rates line with inflation (+3.34%)
*All rates subject to final Parliamentary Approval
LOOKING AHEAD TO 2015/16*WHAT IS AVAILABLE?
NEWS AND UPDATES
• Application data...
• New free phone telephone number for students
• New end to end Welsh Service
• Part Time Application Cycle 2014/15 ready to launch
• Proposal for new Sharia Compliant Loan System
• New email contact for Practitioners:-- [email protected] referral via Regional Adviser
• New Online Application Platform (and Application Demo)
APPLICATIONS & INFORMATIONSECTION 3
STUDENT LOAN APPLICATIONSSTUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - KEY MESSAGES3
• Apply online at gov.uk/studentfinance as soon as possible to make sure their student finance is in place for the start of their course
• The application cycle for 2014/15 is OPEN NOW
• Students do not need a confirmed place at university or college to apply for student finance
• Make a note of their account log-in details & keep them safe
• They can change most details online before starting their course
• Agree to share information from their application, this helps apply for many bursaries and some scholarships
STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - COMPLETING AN APPLICATION3
Before starting the application, students should have the following to hand:
• Passport - SLC can check identity using valid UK passport details for most students
• University and course details
• Bank account details and National Insurance number
If you will be supporting a students application you will need to set up your own account on GOV.UK and provide information including:
• National Insurance number(s), household income, details of other
child dependent’sIf you can’t submit your income details online, send a photocopy of evidence including: P60, Pay slips, Tax return, or Pensions
APPLICATION INFORMATIONCOMPLETING AN APPLICATION3
3 NEW LOOK ‘MY ACCOUNT’ MAKING IT EASIER TO NAVIGATE & UNDERSTAND
3 NEW LOOK ‘MY ACCOUNT’ MAKING IT EASIER TO NAVIGATE & UNDERSTAND
3 NEW LOOK ‘MY ACCOUNT’ MAKING IT EASIER TO NAVIGATE & UNDERSTAND
SECTION 4 STUDENT LOAN REPAYMENTS
• You won’t make repayments until your income is over £21,000 a year gross (before tax)
• Full-time students will be due to start repaying in the April after graduating from/leaving their higher-education course
• You’ll repay 9% of your income over £21,000 and if you’re employed deductions will be made from your pay through the HMRC tax system
• If your income falls to £21,000 or below your repayments will stop
• Any outstanding loan balance will be written off 30 years after entering repayment
STUDENT LOAN REPAYMENTSTUDENT LOAN REPAYMENTSAN OVERVIEW
www.youtube.com/SFEFILM
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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
Early repayments can be made at any time, but any outstanding loan balance will be written off 30 years after entering repayment
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Interest added will vary, depending on a student’s circumstances:
During study until entering repayment
Interest rate is: Retail Price Index (RPI) +3%
Income: Below £21,000
Interest rate is: Set at RPI Only
Income: £21,000 to £41,000
Interest rate is:RPI plus up to 3%
Income:Above £41,000
Interest rate is: Retail Price Index (RPI) +3%
The interest rate applied is updated once a year in September, using the rate of RPI from that March which is carried forward
STUDENT LOAN REPAYMENTSTHE INTEREST4
Example 1 Old System Student
• 3 year course, £3,000 a year fees• £4,000 a year maintenance loan
• 25 year write off period
Owes £23,000 at end of studies, including interest
Starting Salary of £24,000
Total Repayments = £35,500
Repay full balance in 24.5 years
! Assumptions: 2% salary growth, 3% average inflation. Based on a report by HEPI on the Government White Paper, available here.
Example 2 New System Student
• 3 year course, £9,000 a year fees• £4,300 a year maintenance loan
• 30 year write off period
Owes £45,000 at end of studies,including interest
Starting Salary of £24,000
Total Repayments = £22,000
Balance written off after 30 years
4 STUDENT LOAN REPAYMENTSA COMPARISON…
www.studentloanrepayment.co.uk
4 STUDENT LOAN REPAYMENTSDEDICATED WEBSITE
PRACTITIONER RESOURCESSECTION 5
5 PRACTITIONER RESOURCESDEDICATED WEBSITE
www.practitioners.slc.co.uk
PRACTITIONER RESOURCES
• Money Matter e-mag
• Suite of Factsheets
• Series of Full and Quick Guides
• PowerPoint Presentations
• Videos and Marketing Materials
• Policy Documents and SFE Updates
• Application Demo 2014/15
• Links to interactive features, including SFE‘A Minute For’ videos
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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 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:
www.practitioners.slc.co.uk/regional-support
PRACTITIONER RESOURCESSUPPORT FOR PRACTITIONERS
Practitioner Helpline: For detailed/complex regulatory advice and particularly complex assessment enquiries - 0845 602 0583
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