Money Matters! Funding for students starting in 2012 Kate White Advice and Welfare Service Student...
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Transcript of Money Matters! Funding for students starting in 2012 Kate White Advice and Welfare Service Student...
Money Matters!Funding for students starting in
2012
Kate WhiteAdvice and Welfare Service
Student Services Department
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 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
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
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/