Finance and Higher Education

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Finance and Higher Education 2006
onwards Updated Nov 2005
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What were going to cover

• Tuition Fees
• Maintenance Loans
• Maintenance Grants
• Other available assistance
• Bank accounts
• Part time work
• Budgeting

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Tuition Fees

• HEIs can charge up to 3,000 per year (called
  variable fees) (in England only).
• Tuition Fees vary depending on the
  university/college and the course you are
  studying.
• Existing students will not have to pay variable
  fees.
• New and existing students can defer payment of
  Tuition Fees until AFTER they have finished
  university/college.

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Student Loan for Fees

• From 2006, if you want to defer your Tuition Fee
  repayments until after you have graduated, you
  can take out a Student Loan for Fees.
• The loan is repaid after you have graduated and
  are earning over 15,000 a year (if your earnings
  ever fall below this, re-payments are suspended).
• The amount of loan available to borrow will match
  the tuition fees you have to pay and will be paid
  directly to your university or college.
• Note You can opt to pay your Tuition Fees
  upfront should you choose to.

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Maintenance Grant

• A grant is dependent upon your household income.
• A grant does not have to be re-paid.
• Grants are paid in three instalments per year.
• 1,200 of the grant is paid in substitution of
  the maintenance loan (therefore, that you still
  get the full financial support you are entitled
  to but dont have to pay as much back after you
  have graduated).
• It is estimated that around 50 of full time
  students will be eligible for a full or partial
  grant.

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Special Support Grant

• The S.S. Grant is an alternative to the
  Maintenance Grant and is generally available for
• Lone parents
• If your spouse is in full-time education and you
  have dependents
• You are over 60 years old
• You receive certain disability benefits.
• A grant is dependent upon your household income.
• A grant does not have to be re-paid and is paid
  in three instalments per year.
• The main difference is that there is no
  substitution of the Maintenance Student Loan.

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GrantsHow much could I could I get?
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Bursaries

• You are eligible for a Bursary if
• You receive the full 2,700 Maintenance Grant
• AND
• You are asked to pay more than 2,700 in Fees
• HEIs must provide a minimum non-payable Bursary
  for any Fee amount over 2,700.
• Students from low income households who have to
  pay more than 2,700 in Tuition Fees will get a
  non-repayable package of support for at least
  this amount.
• Universities Colleges may offer additional
  support to the standard bursary above.

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Student Loans for Maintenance

• 25 means tested on your household income.
• Paid into the students bank account at the
  beginning of each term (3 instalments over the
  academic year).
• Repayments do not begin until you are earning
  over 15,000 per year.
• The interest on your loan is at the rate of
  inflation.
• If you have a Fees and Maintenance student
  loan, these will be combined for repayments.
• Repayments are linked to salary after you
  graduate.

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Students Loans - how much? 2006-07
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Repaying your Loans

• Repayments of the combined Loans start once you
  have left your course and are earning over
  15,000 per year.
• Repayment rate is 9 of earnings above 15,000 a
  year.
• Repayment examples

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Additional Support
Supplementary Grants Adults Dependent
Grant Parents Learning Allowance Childcare
Grant Disabled Students Allowances Discretionary
support Every HEI will have Student Support
services. Bursaries and Scholarships check
with HEI Access to Learning Fund
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Other issues to consider

• Parents input
• Sponsorship
• Part-time job
• Bank

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Part time work

• The majority of students will have a part time
  job when they are at University (summer and term
  time).
• All universities will have a mechanism to help
  students find part time work- these are usually
  run by student services.
• The NUS advise students not to work more than 15
  hours per week, otherwise studies could be
  effected.
• Working is an excellent way to gain/build on
  transferable skills- communication, team working,
  
• Target a job to aid a future career.

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Student bank account?

• Most high street banks offer student accounts
  with interest free overdrafts.
• Beware of gimmicks!
• Credit cards - think carefully as interest rates
  can be high!
• Students often work in the holidays to work off
  their overdrafts to prepare for their next year
  of study!
• Check how long your overdraft is interest free
  for, you dont want to suddenly have to start
  paying high interest rates as soon as you
  graduate.

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Budgeting

• It can be a headache, but if you sort out a
  budget at the beginning of the term it will be
  easier to manage your finances.
• You will need to look at your income and
  expenditure for a term.

There is lots of information on the internet
www.studentmoney.org.
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How much do things cost?

• Halls of Residence 50-80 per week (out of
  London).
• Shared house 40-55 per week (out of London).
• Students do not have to pay council tax.
• Bills are paid quarterly or monthly.
• Most students spend about 20-30 on food per
  week.
• You should include any monthly incomings or
  outgoings e.g.
• Laundry costs
• Contact lenses/glasses
• Gym membership
• Car insurance
• Mobile phone bill
• Contents insurance
• TV licence even if you are living in halls.

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Budgeting

• Work out your budget before you go to University
• Allow more spending money in your first couple of
  weeks at University
• Regularly review your budget e.g. keep your
  receipts from a typical week
• Only take out with you what you want to spend
• For virtually all students, debt is normal
• You all should think about PRIORITISING your money

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How can you save money?

• Look for shops/companies that have points cards
  e.g. Boots, Tescos, Nectar...
• Invest in a young persons coach or rail card
  (save up to a 1/3 on travel costs, under 26
  yrs)
• Use your student card/NUS card for discount
• Take advantage of discount through jobs
• Drink before you go out!
• Not taking a car with you to university/college
• Share travelling costs, food bills etc
• CAN YOU THINK OF ANY OTHERS?

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Useful websites/addresses

• DfES Finance info www.dfes.gov.uk/studentsupport
  
• Aimhigher www.aimhigher.ac.uk
• Student Loan Company www.slc.co.uk
• General info www.studentfinance.co.uk
• Nursing students www.nmas.ac.uk
• www.nhsstudengrants.co.uk
• Social work students www.gscc.org.uk
• Northamptonshire County Council
• Tel [phone]
• Email studentfinance_at_northampton.gov.uk
• www.northamptonshire.gov.uk/learning/young/student
  s