Aim Higher Finance Workshop

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Aim Higher Finance Workshop
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Sam

• Studying PE, Leisure Studies, Media Studies and
  Psychology at AS level
• Family Income - 24,000 a year
• Sam has a weekend job in the local Leisure Centre
  and receives an EMA of 20 a week

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What are Sams options when he leaves college?

• Working full time as an assistant at the Leisure
  Centre
• Studying for a degree in Science, Management of
  Exercise and Health at a local college
• Study for a BSc(Hons) degree on Sports Science at
  a University 50 miles away

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The Cost of Higher Education can be divided into
2 parts

• Tuition Fees
• This is the money that has to be paid to the
  college or university. It goes towards the cost
  of the course.

• Living Expenses
• This is the money that a student needs to
  live. It has to cover rent, food books, travel,
  social life etc.

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Tuition Fees

• In September 2008 HE colleges and universities
  can charge the student up to 3,145 a year in
  tuition fees
• No student or their family will have to pay any
  of this money before they start the course or
  while they are studying
• Sam can take out a TUITION FEE LOAN to cover the
  exact amount of the fees and it will be paid
  directly to the college/university

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Tuition Fee Loan

• This loan is a very cheap form of borrowing with
  a low interest rate, which is inflation linked
• Sam will not have to repay any money until he has
  a job with an annual salary of 15,000
• If Sam never earns as much as 15,000 a year, the
  loan will be written off after 25 years.

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Loan repayment

• If Sam gets a job as a Sports Centre Manager
  earning 20,000 a year he will start to pay the
  money back as follows
• 8.65 per week 9 of his salary over
  15,000
• This is taken directly from his salary like
  tax.

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Living Expenses

• The Living Expenses are much more difficult to
  predict
• We need to work our how much money Sam can get to
  cover his living expenses and how much he will
  need to spend. We hope that these two totals will
  work out to be roughly the same!
• We are going to do the sums for 10 months from
  September to June. We can assume Sam will get a
  full time job for 2 months in the summer to
  support himself.

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Possible sources of income for Sam

• Maintenance Grant this does not have to be
  repaid
• Maintenance Loan this does have to be repaid
• Bursary/Scholarship these do not have to be
  repaid
• Part time job in term time care has to be taken
  about the number of hours worked so as not to
  conflict with studies
• Holiday job

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Lets do the sums for Sam