Money Matters!Funding for students starting in

2012

Kate WhiteAdvice and Welfare Service

Student Services Department

• Tuition fees

• Student loans

• Grants

• Terms and conditions of the student loans

Tuition Fees for 2012

• Tuition fees for full-time degree courses from £6,000 - £9,000 per year for EU and UK students

• UWE will charge £9,000 tuition fees

Student Loans Fee loan • No up-front payment of fees required.• Fee loans available to cover the fees being

charged.

Maintenance loan• Up to £5,500 if living away from home and

studying outside of London.• Some of it will depend on your family income

Money you don’t pay back!

Maintenance Grant £3,250

• Non repayable

• depends on household income

• Students from families with incomes up to £42,000 will be entitled to a partial grant.

Household income

Maintenance grant

Living cost loan

Total living cost

support

£25,000 or less £3,250 £3,875 £7,125

£30,000 £2,341 £4,330 £6,671

£40,000 £523 £5,239 £5,762

£50,000 £0 £4,788 £4,788

£60,000 £0 £3,788 £3,788

Over £62,500 £0 £3,575 £3,575

Part-time studyProposed: fees set as % of full-time fee

Full time fees £9k

Part-time study 50% of FT course = £4,500

Fee loan (non income-assessed)

No funding for living or course costs

Disabled Students’ Allowances

– not dependant on family income

– do not have to be repaid.

– available help if you incur extra costs because of a long-term health conditions, mental health condition or specific learning difficulty such as dyslexia.

– paid on top of the standard student finance package.

UWE Bursary 2012

– New for 2012 to help first-year English students from low income families

– Part of the National Scholarship Programme

– 514 Bursaries of £3,000 in the first year– 500 Bursaries of £1,000 in the first year

– Priority given to Access students, disabled students, Care Leavers, Refugees and very low income students

– Progression bursaries in subsequent years of study

Student loans

Level of debt

Interest rate

repayments

Student loan debt - 3 year degree

£9k fees

Fee and maintenance loan = £38,625

Part-time study with £9k fees

Fee loan = £27,000

Interest rates

• Retail price index (RPI) + 3% will be charged

» while you study (full-time)

» for the first 3 years of study (part-time)

Student loan debt - 3 year degree

£9k fees

Fee and maintenance loan = £38,625

+ Interest £3,476

Part-time study with £9k fees

Fee loan = £27,000

+ Interest £600 after 3 years of 50% study

Liability to repay and the repayment threshold

• Liability to repay starts the April after you graduate (April 2016)

• Liability for repayment as a part-time student is the April after 3 years of study

• Student has to earn more than £21,000 to repay the loans

• The threshold will increase by the rate of inflation from April 2017 for all students

Repaying the loans• Repayments are 9% of earnings above

£21,000 regardless of the outstanding balance

• Deducted by Revenue and Customs

• Any debt is wiped after 30 years of liability to repay

Gross Taxable Income

Monthly Repayments Annual repayments

£26,000 £37.50 £450

£31,000 £75 £900

£36,000 £112.50 £1,350

£41,000 £150 £1,800

£46,000 £187.50 £2,250

Interest rates once liable to repay

• Income under £21,000 = Retail Price Index

• Income between £21,000 - £41,000

RPI + 1-3%

• Income over £41,000 RPI + 3%

Gross Taxable Income

Monthly Repayments

Annual repayments

Interest rate

RPI = 1.5%

Estimatedannual

interest on £38,625

£26,000 £37.50 £450 RPI + 0.75% £869

£31,000 £75 £900 RPI + 1.5% £1,158

£36,000 £112.50 £1,350 RPI + 2.25% £1,448

£41,000 £150 £1,800 RPI + 3% £1,738

£46,000 £187.50 £2,250 RPI + 3% £1,738

Other Issues

• Early repayment penalties

• Mortgages and credit rating

• Financial Capability

Key messages• You don’t need to have cash to go to uni

• Earn under £21k and you’ll never repay

• After 30 years, any remaining debt is wiped

• Monthly repayments are the same regardless of the amount owed

• Student loans do not go on credit files or affect you getting a mortgage

• Many people will not pay it all back

Making the decision about University

• Career

• Money

• Delaying studies

• Part-time study

More information

• UWE website – www.uwe.ac.uk

• Direct.gov.uk - www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/index.htm

• Martin Lewis http://www.moneysavingexpert.com/

Money Matters!Funding for students starting in

2012

Kate WhiteAdvice and Welfare Service

Student Services Department