Student Finance: a beginners guide

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Student Finance a beginners guide
Anne Fielding Smith and Martin Cookson
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What does a student have to pay for?

• Tuition Fees
• are set by each university and paid annually
• do not cover the full cost of tuition only
  international students pay full fees (around
  10,000 a year). For UK students, the rest is
  paid by the Government centrally.
• UK students pay the fee set by an individual
  university. The Government sets a legally binding
  cap, so in 2009-10, no university can charge
  above 3225 (this will increase slightly each
  year). However, nine out of ten universities
  charge the full fee.

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What does a student have to pay for?

• Living Expenses
• Students will have to pay for
• Rent
• Food
• Books and materials
• Travel
• Entertainment and leisure
• Rent in the first year at university will
  generally be for a room in a hall of residence.
  These are hugely variable and can be expensive
  for example, an en suite (!) room in a London
  hall may be as much as 140 per week while a
  standard room in a Liverpool hall might be 50
  per week.

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Will a student have enough money from
loans/grants to cover their living expenses?

• Statistically its unlikely
• Calculations based on typical student spending,
  compared with the money available to students via
  the Student Loan, show that there is a weekly
  shortfall of approximately 75

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Will a student have enough money from
loans/grants to cover their living expenses?

• Students can make up this shortfall by
• Checking if there are bursaries or other schemes
  run by their University which can give them
  money/support
• Working part-time this used to be unusual and is
  now the norm. Latest figures show that 88 of
  students have a part-time job while they study
• Working in the holidays and saving for term time
• Parents
• Unofficial loans e.g. bank overdrafts

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Some key points

• A student's funding come from a number of
  different sources loans, grants, bursaries,
  scholarships etc. It will be crucial for students
  to maximise this funding by finding out as much
  as possible about the different sources.
• Each institution operates its own
  bursaries/scholarships, many of which will be
  targeted on students from lower income
  backgrounds. It is difficult to generalise, so
  research will be essential.
• Most students will have to work either through
  term-time or during holidays, so balancing work
  and study will be a key issue for students to
  deal with.

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STUDENT LOANSFOR2009-10
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Student Finance England

• Responsibility for new student loans for students
  who live in England has moved from Local
  Authorities to Student Loans Company through
  Student Finance England

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Building Blocks of Student Finance
University Bursary
Other Grants
Maintenance Grant
Maintenance Loan
Tuition Fee Loan
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Student Finance Package
Building Blocks of Student Finance
Tuition Fee Loan
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Student Finance Package
Tuition Fee Loan
Non income assessed
Paid direct to HEI
Covers full cost of fees
3225
Repayable
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Student Finance Package
Building Blocks of Student Finance
Maintenance Loan
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Student Finance Package
Maintenance Loan
28 income assessed
Help with living and study costs
Paid termly to student
Repayable
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Student Finance Package
Maximum rates 2009-10
Maintenance Loan
Elsewhere 4950
Parental home 3838
In London 6298
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Student Finance Package
Building Blocks of Student Finance
Maintenance Grant
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Student Finance Package
Maintenance Grant
Fully income assessed
Up to 2906
Help with living and study costs
Paid termly to student
Non repayable
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Student Finance Package
Maintenance Grant
Household income up to 25,000 student receives
2906 Household income 25,000 to 50,020
student receives a partial grant Household
income more than 50,020 student receives no
grant
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Student Finance Package
Building Blocks of Student Finance
University Bursary
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Student Finance Package
HEI Higher Education Institution
University Bursary
Scheme unique to each HEI
Help with living and study costs
Payments arranged by HEI
Non repayable
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Building Blocks of Student Finance
Other Grants
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Other Grants
Funding from OGD to support NHS students Social
Work students Dance Drama students Initial
Teacher Training students Students who receive
Income Support, Housing Benefit etc
Disabled Students Allowance Child Care
Grant Adult Dependants Grant Parents Learning
Allowance Special Support Grant
NHS
CCG
DSA
ADG
ITT
OGD Other Government Departments
PLA
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Case Studies
Claire
Ben
Taj
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Case Study
Age 19 Parental income is 40,000 Single, no
dependents Plans to study Law and live away from
home
Claire
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Case Study
Parental income 40,000 Tuition Fee
Loan Maintenance Loan (outside
London) Maintenance Grant Bursary Scholarship
Claire
3,225
4,595
711
2009/10 Rates
Dependant on HEI - assume nil
Dependant on HEI
5,806/30 weeks 193.53 per week
Weekly income
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Case Study
Age 18 Parental income is 15,000 Single, no
dependents Plans to study Media Studies and live
away from home
Ben
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Case Study
Ben
Parental income 15,000 Tuition Fee
Loan Maintenance Loan (outside
London) Maintenance Grant Bursary Scholarship
3,225
2,385
2,906
Dependant on HEI assume 1000 pa
Dependant on HEI
2009/10 Rates
6,291/30 weeks 209.70 per week
Weekly income
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Case Study
Age 18 Parental income is 55,000 Single, no
dependents Plans to study American Studies with
Psychology and live away from home
Taj
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Case Study
Parental income 55,000 Tuition Fee
Loan Maintenance Loan (outside
London) Maintenance Grant Bursary Scholarship
3,225
4,106
Taj
0
Dependant on HEI assume nil
Dependant on HEI
2009/10 Rates
4,106/30 weeks 136.87 per week
Weekly income
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Key points
Maintenance Grant Doesn't need to be paid back.
Up to 2,906. Sliding scale up to income of
50,020 Maintenance Loans Needs to be paid
back. Up to 4,950 (outside London). Reduces as
Maintenance Grant increases. Is capped at 3,564
if income is over 57,708 Bursaries are available
at most universities for students from families
from low incomes (eg University of Brighton
bursary 1,080 if income is less than
25,000) Average weekly expenditure at university
is about 240 Most students need additional money
to survive.
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Student Loan Repayment
What do students have to repay? How do
repayments work?
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Student Loan Repayment
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Website www.studentloanrepayment.co.uk
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Student Finance England 2009 onwards
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New Student Finance Service

• Service launched in February 2009
• Linked to the UCAS application process on-line
• Students able to access information and guidance
  via www.direct.gov.uk/studentfinance apply
  online
• Primarily on-line service although not
  exclusively
• Applies only to full-time students entering HE

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How to apply
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How to apply

• Once the student has completed their UCAS form,
  they register on line at www.direct.gov.uk/student
  finance
• The student answers lots of questions about
  themselves and enters their national insurance
  number and passport details (if they have one).
• There is a link to their UCAS application which
  captures information about their university
  choices and gives useful information about
  bursaries at their chosen universities.

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How to apply

• Once the student has completed their bit, you,
  the sponsor, will be sent details of how to log
  in to the Student Finance website. You will be
  required to provide a lot of personal information
  about your finances.
• Your son/daughter does not see any of this. It
  is totally confidential.
• Once completed, you will need to send evidence of
  your income (usually your P60) to Student Finance
  England.
• You may fill in a paper form if you dont have
  access to a suitable (ie private) computer.

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Student and Parent Support
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Support Available

• Website www.direct.gov.uk/studentfinance
• Customer (Student/Parent) Telephone Helpline
• 0845 300 5090 (Lines open 800am to 800pm)
• Step-by-step online guide
• Enhanced student finance calculator