Student Finance Update
Exeter HE Advisers’ Day 3 February 2011
Katy BargeStudent Finance ConsultantSouth West
Agenda
• 2012/13 Proposals
• Application Process – launch and deadlines
• Process Improvements
• New Resources for Practitioners
• 99thth December 2010 December 2010: Parliament voted in favour of a tuition fee
increase up to a maximum of £9,000 per annum
• Any reforms will be introduced for those entering higher education in 2012
• Changes will therefore not affect those already at university, those starting in 2011 and those who have left university and are in repayment
• It will be for institutions to decide the level of tuition fees they charge
2012/13 Arrangements
• For those starting university in autumn 2012, details on student support should be announced by Summer 2011
• Students who defer entry from 2011/12 to 2012/13 will have their loans and grants for living costs set at the 2012/132012/13 rates
• A full white paper will be published in spring 2011
2012/13 Arrangements
2011/12 2012/13*
Tuition Fee Loan
Max £3,375
Two tiers: max £6,000 or £9,000
£9000 only in exceptional circumstances
Fee Loans for part-time courses if intensity 25% +
Maintenance Loan
Variable amounts in 3 bands
Means tested
Variable amounts in 3 bands – details to be confirmed
Loans increased for household incomes from £42K - £60K
Not available to part-time students
Maintenance Grant
Max £2,906£25K / £50K thresholds
Max £3,250 - £25K / £42K thresholds
Not available to part-time students
HEI Bursary£338+ for those on full grant paying full
fees
New £150m National Scholarships Programme – obligatory for HEI to participate if fees exceed
£6,000
ApplicationSeparate application process post
UCASNo details yet
Repayment
9% of earnings over £15K threshold
Interest inflation linked (currently 1.5%)
Written off after 25 years
9% of earnings over £21K threshold
Interest £21k - £41K - Tapered inflation RPI + 3%
Written off after 30 years
Early repayment arrangements being considered*Please note that these are ONLY proposals: detailed decisions have yet to be taken, and the package of support available to 12/13 entrants will not be announced until later in 2011
Summary of Proposals
Repayment thresholds will be modified:
– The current £15,000 earnings threshold will be uprated annually in line with inflation from April 2012
– The proposed £21,000 earnings threshold will be uprated annually in line with earnings from 2016 (when first new system graduates start repayments)
– This as opposed to every five years as originally proposed
– No graduate will repay anything until they reach that income threshold
NB. The above is all subject to parliamentary approval
Additional Info
• A student loan is very unlikely to affect your ability to get a mortgage
(The Council for Mortgage Lenders )
• Mortgage lenders are most interested in your monthly income (‘ability to repay’)
• Under the new system monthly repayments lower = greater monthly income
NB. The above is all subject to parliamentary approval
Additional Info (cont)
Loan RepaymentComparison
Income each year before tax Approximate monthly repayment
Now Future
£15,000 £0 £0
£16,000 £8 £0
£18,000 £23 £0
£21,000 £45 £0
£24,000 £68 £23
£27,000 £90 £45
£30,000 £113 £68
£33,000 £135 £90
£36,000 £158 £113
£40,000 £188 £143
£1
8,0
00
£2
2,0
00
£2
6,0
00
£3
0,0
00
£3
4,0
00
£3
8,0
00
£4
2,0
00
£0
£50
£100
£150
£200
£250
Monthly Repayment ComparisonNew System
Old System
2011/12 Launch
• Apply online from Spring 2011:
16th March new Students (deadline 31st May)
14th Feb returning students (deadline 30th June)
• Only 2 deadlines for 2011/12
When To Apply
Online Application Process
• Login via: www.direct.gov.uk/studentfinancewww.direct.gov.uk/studentfinance
• Customer Reference Number (CRN) allocated
• Choose password and secret answer
• Review and submit application online
• Track application progress via ‘My Account’:
- view correspondence/payments
- change bank details
- update profile/security details
- make changes after submission
• Roll-out of verification of household income with HMRC
• The majority of new applicants should not need to send in financial evidence for prior tax year 2009/10
• Designed to reduce the time it takes to assess a new application for the majority of customers
• When we do ask customers to send financial evidence, we will only ask for copies of documents and not originals
Improvements – New Students
• Links in place:
HMRC : confirm household income
IPS : confirm identity
DWP : confirm National Insurance Number
UCAS : personal and course information shared with SFE
Improvements – New Students
• Those who applied for non-means-tested finance will be processed automatically if their circumstances haven’t changed
• They will simply need to sign and return the form they receive from SFE
• New and returning students will be paid NMT support if we are awaiting financial evidence to means test
Returning Students
IAG Resources
for Practitioner
s
IAG Quality Standards Materials• Materials developed with Practitioners
• Linked to national IAG Quality Standards used by Ofsted (fully cross-referenced)
• Resources ready to use with students:- Lesson Plan- 2x scripted PowerPoint presentations
11/12 Quick Start Guide is located here
Fact Sheets• Fact Sheets for particular groups e.g.
- NHS & Social Work students- Disabled students- Care leavers- Students on benefits- Erasmus students/studying abroad- Independent students- Sandwich course students- ITT students
• Electronic format – latest versions online
• Designed for use as:• Quick reference guides• Handouts for events
www.practitioners.studentfinanceengland.co.uk
2011/12 Key Messages for Students
• Do your research early
• Don’t wait until you know where you’re going before applying
• Apply online from Spring 2011:
– 16th March new Students (deadline 31st May)
– 14th Feb returning students (deadline 30th June)
• Send in your signature & your evidence (if requested) promptly
• Let us know straight away if anything changes
• Make use of ‘My Account’
Any Questions