Post on 11-Dec-2015
Tuition Fees and Student Finance 2012-13A summary of the presentations made byStudent Finance England reps, &Peter Boursnell, Brent Aimhigher Coordinator
UCAS Annual Conference February 2012
Overview
Update on Tuition Fees
Student loan from 2012
What does it mean for you?
Government claims the new arrangements will ensure …
all graduates will pay less per month than they do under the current system.
all outstanding repayments will be written off after 30 years
around a quarter of graduates, those with the lowest lifetime earnings, will pay less than under the current system.
The Browne Report suggested that only the top 40% of earners on average will pay back the full amount of their loan over the 30 year repayment period. This percentage was based on its recommendations and may be different under the government’s proposals.
Important things to remember No up front payments made
No payments at all until graduate earns £21,000
9% earnings above the threshold are collected for repayment
Loan written off after 30 years
2011/12 2012/13*
Tuition Fee Loan (“Graduate
Contribution”)Max £3375
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 £2906£25K / £50K thresholds
Max £3,250 - £25K / £42K thresholdsNot available to part-time students
HEI Bursary £338+ for those on full grant paying full feesNew £150m National Scholarships Programme – obligatory
for HEI to participate if fees exceed £6,000
Application Separate application process post UCAS No details yet
Repayment
9% of earnings over £15K threshold (uprated annually in line with inflation from April 2012)
Interest inflation linked (currently 1.5%)
Written off after 25 years
9% of earnings over £21K threshold (uprated annually in line with earnings from April 2016)
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
Repayments are collected through tax system, starting April after graduation
Currently; only repay if earning above £15,000 per annum or £1,250 per month gross
Proposed; only repay if earning above £21,000 per annum or £1,750 per month gross
9% earnings above threshold are collected for repayment
Loans taken A/Y 06/07 or after written off after 25 years
Loans taken A/Y 12/13 or after written off after 30 years
Loan Repayment
Case Studies
NB: The following figures are calculations made by the presenter, they are not official figures
Graduates on salary of £21,000Student starting University in 2011 Student starting University in 2012
Under the CURRENT Fees arrangements Under the New Fees arrangements Tuition Fees: £3,375 per year Tuition Fees: £9,000 per yearTotal loan for 3 year course: £10,125 Total loan for 3 year course: £27,000 Student finishes degree in June 2014(takes a Gap year, travelling the world).
Student finishes degree in June 2015
Student starts working in Sept 2015 Student starts working in Sept 2015
Both students on a starting salary of £21,000Student pays 9% of earnings above £15k= £10 per week (approx)
Student pays 9% of earnings above £21k= £0 per week (Nothing)
Take home pay after tax and NI would be £322 per week (estimate)£312 per week after loan payment (estimate)
Take home pay after tax and NI would be £322 per week (estimate)
Note: the £10,125 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.
Note: the £27,000 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.
Graduates on salary of £24,000Student starting University in 2011 Student starting University in 2012
Under the CURRENT Fees arrangements Under the New Fees arrangements Tuition Fees: £3,375 per year Tuition Fees: £9,000 per yearTotal loan for 3 year course: £10,125 Total loan for 3 year course: £27,000 Student finishes degree in June 2014(takes a Gap year, travelling the world).
Student finishes degree in June 2015
Student starts working in Sept 2015 Student starts working in Sept 2015
Both students on a starting salary of £24,000Student pays 9% of earnings above £15k= £16 per week (approx)
Student pays 9% of earnings above £21k=£5 per week (approx)
Take home pay after tax and NI would be £365 per week (estimate)£349 per week after loan payment (estimate)
Take home pay after tax and NI would be £365 per week (estimate)£360 per week after loan payment (estimate)
Note: the £10,125 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.
Note: the £27,000 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.
Graduates on salary of £30,000Student starting University in 2011 Student starting University in 2012
Under the CURRENT Fees arrangements Under the New Fees arrangements Tuition Fees: £3,375 per year Tuition Fees: £9,000 per yearTotal loan for 3 year course: £10,125 Total loan for 3 year course: £27,000 Student finishes degree in June 2014(takes a Gap year, travelling the world).
Student finishes degree in June 2015
Student starts working in Sept 2015 Student starts working in Sept 2015
Both students on a starting salary of £30,000Student pays 9% of earnings above £15k= £26 per week (approx)
Student pays 9% of earnings above £21k= £16 per week (approx)
Take home pay after tax and NI would be £448 per week (estimate)£422 per week after loan payment (estimate)
Take home pay after tax and NI would be £448 per week (estimate)£432 per week after loan payment (estimate)
Note: the £10,125 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.
Note: the £27,000 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.
Graduates on salary of £40,000Student starting University in 2011 Student starting University in 2012
Under the CURRENT Fees arrangements Under the New Fees arrangements Tuition Fees: £3,375 per year Tuition Fees: £9,000 per yearTotal loan for 3 year course: £10,125 Total loan for 3 year course: £27,000 Student finishes degree in June 2014(takes a Gap year, travelling the world).
Student finishes degree in June 2015
Student starts working in Sept 2015 Student starts working in Sept 2015
Both students on a starting salary of £40,000Student pays 9% of earnings above £15k= £43 per week (approx)
Student pays 9% of earnings above £21k=£33 per week (approx)
Take home pay after tax and NI would be £587 per week (estimate)£544 per week after loan payment (estimate)
Take home pay after tax and NI would be £587 per week (estimate)£554 per week after loan payment (estimate)
Note: the £10,125 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.
Note: the £27,000 does not include any maintenance loan. However, even with maintenance loan added, the amount repaid per week remains the same.
Conclusions Think seriously about applying to
university: - If you do not see yourself in graduate
employment after university, there may not be much point in going at all!
- All the research shows that graduates are, on average, happier, healthier and wealthier than the rest of the population!
- Make sensible choices to ensure that you get value for money. UNITSTATS.
- When you get there, demand value for money!
Conclusions cont. Although you will probably be paying more overall
for your university studies You do not have to make any up-front payments Your rate of payment will be less than students
currently pay If you go into graduate employment, monthly
repayments will be well within your means. Rather than a loan (and therefore a debt) it makes
more sense to see tuition fees as a graduate tax. In 1970s when there was no tuition fees or student
loans, basic income tax was between 30 and 35%. People managed.
It is as if your income tax will be 29% rather than 20%. You’ll manage.
Annual Conference for Teachers and Advisers
Mary Curnock Cook
Chief Executive
9-10 February 2011
The World of Higher Education 2011-12
▪ Massive expansion of Higher Education in last 10-15
years
▪ Government cuts in HE funding – esp. teaching
budget
▪ Financial penalties on HE institutions for taking
students above quota
▪ Rise in tuition fees won’t offset govt funding cuts
Why Universities like state school students …
“Hoare and a colleague studied the
results of 4,305 students admitted to
Bristol in 2002-4. The starkest result
was the 54% gap in firsts between state
and private school students with three
As at A-level.” From the Sunday Times
General guidance
▪ Minimum entry requirements
▫ Are minimum entry requirements
▪ Achieving minimum entry requirements gets you on the
pile that gets considered
▫ Then additional sifts are applied
▫ Everyone competing for the place your candidates
want will also meet the minimum requirements
▪ Ask mentor/D Studies about the likely sifting process at
target institutions
▪ Ring them yourself
Some application strategies.........
▪ Broaden your choice of institution
Top15 institutions - independent school accepts
Other Russell Group universities
▪ Cardiff
▪ Edinburgh
▪ Glasgow
▪ Liverpool
▪ LSE
▪ Queen’s Belfast
▪ Sheffield
Challoner Students: Offers 2011
Institution Offer Course NameLVRPL AAB English
GLASG ABB Mechanical Engineering
LVRPL ABB PhilosophyCARDF BBB Environmental Geoscience
EDINB N Computer Science
LSEA*AA (inc Eng Lit & exc FM) Law
LVRPL ABB Physiology
LVRPL ABB Biological Sciences
LVRPL BBB Combined Honours
SHEFD AAB Molecular Biology
Challoner applications to Russell Group universities 2011
▪ No of students applying 40 (out of 82)
▪ No of applications 93 (out of 407)
▪ Offers so far 59 (out of 93) – 66%
▪ No of rejections 15 (out of 93) - 16%
▪ Offer range A*AA – BBB (most
AAA/AAB)
▪ Highest offers: Birm, Bristol, Cam, Leeds, LSE, Soton
1994 Group
University of Bath
Birkbeck, University of London
Durham University
University of East Anglia
University of Essex
University of Exeter
Goldsmiths, University of London
Institute of Education, University of London
Royal Holloway, University of London
Lancaster University
University of Leicester
Loughborough University
Queen Mary, University of London
University of Reading
University of St Andrews
School of Oriental and African Studies
University of Surrey
University of Sussex
University of York
Challoner applications to 1994 Group universities 2011
▪ No of students applying 44 (out of 82)
▪ No of applications 81 (out of 407)
▪ Offers so far 62 (out of 81) – 66%
▪ No of rejections 4 (out of 81) - 16%
▪ Offer range A*AA – BBB (most
AAB/ABB)
University Alliance
Aberystwyth University Bournemouth University University of Bradford[3]
De Montfort University University of Glamorgan Glasgow Caledonian Unive
rsity University of Hertfordshire University of Huddersfield University of Lincoln Liverpool John Moores
University Manchester Metropolitan U
niversity Northumbria University
Nottingham Trent University The Open University Oxford Brookes University[1]
University of Plymouth University of Portsmouth University of Salford Sheffield Hallam University Teesside University University of Wales Institute
, Cardiff University of Wales, Newpo
rt University of the West of En
gland
Challoner applications to University Alliance universities 2011
▪ No of students applying 44 (out of 82)
▪ No of applications 66 (out of 407)
▪ Offers so far 55 (out of 66) – 66%
▪ No of rejections 5 (out of 66) - 16%
▪ Offer range ABB (320) – 220 (CCD)
▪ Average offer 280 (BBC)
Million + Group
University of Abertay Dundee Anglia Ruskin University Bath Spa University University of Bedfordshire Birmingham City University University of Bolton Buckinghamshire New Universi
ty University of Central Lancashir
e Coventry University University of Derby University of East London Edinburgh Napier University University of Greenwich
Kingston University Leeds Metropolitan University London Metropolitan University London South Bank University Middlesex University University of Northampton Roehampton University Southampton Solent University Staffordshire University University of Sunderland Teesside University Thames Valley University University of The West of Scotl
and University of Wolverhampton
Challoner applications to Million + universities 2011
▪ No of students applying 29 (out of 82)
▪ No of applications 52 (out of 407)
▪ Offers so far 30 (out of 52) – 58%
▪ No of rejections 5 (out of 66) - 13%
▪ Offer range 340 – 120
▪ Average offer 240 (CCC)
Challoner applications 2011 overview so far
HE group Students No apps%
apps % Rej Offers % offers
Russell 40 89 22 16 59 66
1994 44 81 20 5 62 77
Uni Alliance 43 66 16 6 55 83
Non-Aligned 58 115 28 7 69 60
Million + 29 52 13 13 30 58
Total no of students applying 82Total no of applications made 407
Some examples of good choices
Molecular Biology
EANGL BBB
LVRPL ABB
BATH ABB
YORK ABB
SHEFD AAB
Geography
STAFF 260
LEICR ABB
READG 320
KEELE 300
PORT 280
International RelsOXFD BBCBIRM ABBREADG 300EANGL ABBBIRM BBB
HistoryKENT 340ROE 300MSOTON KPORT 300KING 220
Some examples of poor choice range
Philosophy
OXFD BBC
KEELE 300
LVRPL ABB
LEEDS REJ
BIRM REJ
Primary Teaching
KING REJ
SMARY REF
UOC INV
ROE REJ
BRITN REJ
Strategies..........
▪ Make sure you have a range of institutions
among your choices:
▪ 1 aspirational
▪ 2-3 realistic
▪ 1 ‘if all else fails’
▪ Insurance choice
▫ It’s a backstop not a second option
▫ Last year 42% had CIs harder or equal to
CFs
▪ Consider post qualifications admission