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Transcript of Www.gov.uk/studentfinance STUDENT FINANCE ENGLAND HELOA Teacher and Adviser Conference Thursday 15...
www.gov.uk/studentfinance
STUDENT FINANCE ENGLANDHELOA Teacher and Adviser Conference
Thursday 15th May 2014
Chris Snowdon (Student Finance Adviser, East of England)
SESSION CONTENTSi• The Student Finance Information Team (SFIT)
• The Student Finance Package
• Looking Ahead to 2015/16
• News and Updates
• Applications & Information : Get it right first time
• How Repayment Works?
• Practitioner Resources
REGIONAL SUPPORTTHE STUDENT FINANCE INFORMATION TEAMi
• Provide training, updates CPD opportunities for staff and practitioners• Assist in providing student finance updates at appropriate events (parents)• Signposting to a range of free resources• Student finance mailing list (East of England specific)• Statement of Service
www.gov.uk/studentfinance
THE STUDENT FINANCE PACKAGE
• TUITION FEE LOANNon-Means Tested for whatever your being charged (up to £9000 max)
• MAINTENANCE LOANParents (max of £4418), Elsewhere (max of £5555), London (max of £7751) 65% non means tested, 35% means tested
• MAINTENANCE GRANTMeans Tested (non-repayable) grant of up to £3387
• ADDITIONAL SUPPORTStudent with children / Student with disabilities
• ...and don’t forget about bursaries and scholarships...
2014/15 AT A GLANCEWHAT IS AVAILABLE?
• TUITION FEE LOANMaintained at the same level as 2014/15 (max of £9000)
• MAINTENANCE LOANIncrease in maximum rate of Maintenance Loan in line with inflation (+3.34%)
• MAINTENANCE GRANTMaintained at the same level as 2014/15 (max of £3387)
• ADDITIONAL SUPPORT Increase in maximum rates line with inflation (+3.34%)
*All rates subject to final Parliamentary Approval
LOOKING AHEAD TO 2015/16*WHAT IS AVAILABLE?
NEWS AND UPDATES
• Application data...
• New free phone telephone number for students
• New end to end Welsh Service
• Part Time Application Cycle 2014/15 ready to launch
• Proposal for new Sharia Compliant Loan System
• New email contact for Practitioners:-- [email protected] referral via Regional Adviser
• New Online Application Platform (and Application Demo)
APPLICATIONS & INFORMATIONSECTION 3
STUDENT LOAN APPLICATIONSSTUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - KEY MESSAGES3
• Apply online at gov.uk/studentfinance as soon as possible to make sure their student finance is in place for the start of their course
• The application cycle for 2014/15 is OPEN NOW
• Students do not need a confirmed place at university or college to apply for student finance
• Make a note of their account log-in details & keep them safe
• They can change most details online before starting their course
• Agree to share information from their application, this helps apply for many bursaries and some scholarships
STUDENT FINANCE APPLICATIONS RIGHT FIRST TIME - COMPLETING AN APPLICATION3
Before starting the application, students should have the following to hand:
• Passport - SLC can check identity using valid UK passport details for most students
• University and course details
• Bank account details and National Insurance number
If you will be supporting a students application you will need to set up your own account on GOV.UK and provide information including:
• National Insurance number(s), household income, details of other
child dependent’sIf you can’t submit your income details online, send a photocopy of evidence including: P60, Pay slips, Tax return, or Pensions
APPLICATION INFORMATIONCOMPLETING AN APPLICATION3
3 NEW LOOK ‘MY ACCOUNT’ MAKING IT EASIER TO NAVIGATE & UNDERSTAND
3 NEW LOOK ‘MY ACCOUNT’ MAKING IT EASIER TO NAVIGATE & UNDERSTAND
3 NEW LOOK ‘MY ACCOUNT’ MAKING IT EASIER TO NAVIGATE & UNDERSTAND
SECTION 4 STUDENT LOAN REPAYMENTS
• You won’t make repayments until your income is over £21,000 a year gross (before tax)
• Full-time students will be due to start repaying in the April after graduating from/leaving their higher-education course
• You’ll repay 9% of your income over £21,000 and if you’re employed deductions will be made from your pay through the HMRC tax system
• If your income falls to £21,000 or below your repayments will stop
• Any outstanding loan balance will be written off 30 years after entering repayment
STUDENT LOAN REPAYMENTSTUDENT LOAN REPAYMENTSAN OVERVIEW
www.youtube.com/SFEFILM
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Income each year before tax
Income from which 9% is deducted
Monthly Repayment
(Approx)
£21,000 £0 £0
£25,000 £4,000 £30
£30,000 £9,000 £67
£35,000 £14,000 £105
£40,000 £19,000 £142
£45,000 £24,000 £180
£50,000 £29,000 £217
£60,000 £39,000 £292
STUDENT LOAN REPAYMENTSTHE FIGURES
Early repayments can be made at any time, but any outstanding loan balance will be written off 30 years after entering repayment
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Interest added will vary, depending on a student’s circumstances:
During study until
entering repaymentInterest rate is:
Retail Price Index (RPI) +3%
Income:
Below £21,000Interest rate is: Set at RPI Only
Income:
£21,000 to £41,000
Interest rate is:RPI plus up to 3%
Income:
Above £41,000
Interest rate is: Retail Price Index (RPI) +3%
The interest rate applied is updated once a year in September, using the rate of RPI from that March which is carried forward
STUDENT LOAN REPAYMENTSTHE INTEREST4
Example 1 Old System Student
• 3 year course, £3,000 a year fees• £4,000 a year maintenance loan
• 25 year write off period
Owes £23,000 at end of studies, including interest
Starting Salary of £24,000
Total Repayments = £35,500
Repay full balance in 24.5 years
!Assumptions: 2% salary growth, 3% average inflation. Based on a report by HEPI on the Government White Paper, available here.
Example 2 New System Student
• 3 year course, £9,000 a year fees• £4,300 a year maintenance loan
• 30 year write off period
Owes £45,000 at end of studies,including interest
Starting Salary of £24,000
Total Repayments = £22,000
Balance written off after 30 years
4 STUDENT LOAN REPAYMENTSA COMPARISON…
www.studentloanrepayment.co.uk
4 STUDENT LOAN REPAYMENTSDEDICATED WEBSITE
PRACTITIONER RESOURCESSECTION 5
5 PRACTITIONER RESOURCESDEDICATED WEBSITE
www.practitioners.slc.co.uk
PRACTITIONER RESOURCES
• Money Matter e-mag
• Suite of Factsheets
• Series of Full and Quick Guides
• PowerPoint Presentations
• Videos and Marketing Materials
• Policy Documents and SFE Updates
• Application Demo 2014/15
• Links to interactive features, including SFE‘A Minute For’ videos
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Student Finance Advisers:
Our team of dedicated regional advisers work closely with key partners
across England to deliver a range of services including:
• Staff development through bespoke training, • Advice and support with SFE resources, policy and processes
If we can support you and your colleagues with any area of student finance
IAG delivery, please do get in touch:
www.practitioners.slc.co.uk/regional-support
PRACTITIONER RESOURCESSUPPORT FOR PRACTITIONERS
Practitioner Helpline: For detailed/complex regulatory advice and particularly complex assessment enquiries - 0845 602 0583
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