£ 12_13 student finance. 12_13 content how it all works applying repaying resources

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£ 12_13 Student Finance

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Page 1: £ 12_13 Student Finance. 12_13 Content How it all works Applying Repaying Resources

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Student Finance

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Content

• How it all works

• Applying

• Repaying

• Resources

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A word about fees

• Up to £9,000 per year…

• …but tripling fees ≠ tripling costs: the real cost is in repayment

• Nothing has to be paid upfront

• Most students won’t repay the full amount borrowed

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Summary of changes for 2013

• Full and part-time fees remain £9,000 max

• Living cost loans remain fixed at 2012 rates

• Household income thresholds remain fixed at 2012 rates

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What support could I get?

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Tuition Fee Loan

• Loan for cost of fees ( up to £9,000 per year in 2013)

• Available for full-time and part-time study

• Repay only once graduated and once earning £21k

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What support could I get?

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Living Cost Support

• Money for living costs – bills, food, rent

• Amount depends on income

• May receive a grant (non-repayable) – earnings under £42,600

• Repay loans only once graduated and once earning £21,000

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Household Income

Maintenance Grant

Maintenance Loan

Total

£25,000 & under £3,354 £3,823 £7,177

£30,000 £2,416 £4,292 £6,708£35,000 £1,478 £4,761 £6,239£40,000 £540 £5,230 £5,770£45,000 £0 £5,288 £5,288£50,000 £0 £4,788 £4,788£55,000 £0 £4,288 £4,288£60,000 £0 £3,788 £3,788

£62,125 & over £0 £3,575 £3,575

Student living away from home outside London 2013

Combined Support for Living Costs

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What support could I get?

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Bursaries:• May link to National Scholarship Programme• Depend on circumstances• Vary by institution

Scholarships:• Academic, sport or music• Subject specific or generic• Vary by institution

Scholarships & Bursaries

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May receive extra money or support if you:

• Have children or adults dependent on you

• Have a disability or learning difficulty

• Are a student parent

Additional Support

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Applying

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www.direct.gov.uk/studentfinance

danielm
Is it worth deleting this altogther? It's not going to exist for 2013/14 students and parents? Or do we acknowledge it's a useful resource while it exists, but won't in the near future- we don't know what it's going to be?
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https://www.gov.uk

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Applications

• Apply early, apply online

• Consent to share: helps with scholarship/bursary provision

• Only supply evidence if you are asked for it.

• Check online account before calling to save time

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Applications cont.

• No need to wait for a confirmed place

• If unsure of fee amount, select ‘maximum’

• Process in place for students with incorrect fee loan

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Resources

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www.facebook.com/SFEngland

www.twitter.com/SF_England

• Daily surgeries• Announcements on key dates, turnaround times etc.• Links to information and guidance materials

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www.thestudentroom.co.uk/studentfinance

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www.thestudentroom.co.uk/studentfinance

Sifter widget

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danielm
Each factsheet image shows 12/13? Not sure there's anyway around this?
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Explaining

Repayment

www.studentloanrepayment.co.uk

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Student Loan Repayment

• You are eligible for repayment:April after you leave/graduate if full-time, orApril 4 years after starting if part-time

• No repayments until earning over £21,000 pa gross

• Repayments via HMRC @ 9% of earnings above £21,000

• No early repayment charge

• Any outstanding debt written off after 30 years

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Student Loan Repayment

Income each year before tax Approximate monthly repayment

Old system New system

£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

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Interest Rates

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Interest RatesICR Historical Interest Rates

*2.56 is the median – the interest rate was adjusted down four times in 2008/09

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Additional Info

• A student loan is 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

• Students may find they are better off…

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Better off with higher fees?Example 1 (old system):

• Old system student borrows £21,000 at end of studies (£3,000 per year fees loan x 3 + £4,000 living cost loan per year x 3)

• Plus interest owes approx £23,000 after studies

• Starting salary of £24,000• Total repayments = £35,500 (repaying full

balance in approx 24.5 years)

Assumptions: 2% salary growth, 3% average inflation/interest

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Better off with higher fees?Example 2 (new system):

• New system student owes £40,000 at end of studies (£9,000 per year fees loan x 3 + £4,300 per year living cost loan x 3)

• Plus interest owes approx £45,000 after studies

• Starting salary of £24,000• Total repayments = £22,000 (balance

written off after 30 years)

Assumptions: 2% salary growth, 3% average inflation/interest

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Student Loan Repayment

Income each year before tax Approximate monthly repayment

Old system New system

£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

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Order here

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0845 300 5090

www.direct.gov.uk/studentfinance

www.thestudentroom.co.uk

facebook.com/SFEngland

@sf_england