STUDENT FINANCE ENGLAND - PowerPoint Presentation

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STUDENT FINANCE

ENGLAND

HELOA Teacher and Adviser Conference

Thursday 15

th

May 2014

Chris

Snowdon

(Student Finance Adviser, East of England)Slide2

SESSION CONTENTS

i

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 ResourcesSlide3

REGIONAL SUPPORT

THE STUDENT FINANCE INFORMATION TEAM

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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 ServiceSlide4

THE STUDENT FINANCE

PACKAGESlide5

TUITION FEE LOAN

Non-Means Tested for whatever your being charged (up to £9000 max)

MAINTENANCE LOAN

Parents (max of £4418), Elsewhere (max of £5555), London (max of £7751

)

65% non means tested, 35% means tested

MAINTENANCE GRANT

Means Tested (non-repayable) grant of up to £3387

ADDITIONAL SUPPORT

Student with children / Student with disabilities...and don’t forget about bursaries and scholarships...

2014/15 AT A GLANCE

WHAT IS AVAILABLE?Slide6

TUITION FEE LOAN

Maintained at the same level as 2014/15 (max of £9000)

MAINTENANCE LOAN

Increase in maximum rate of Maintenance Loan in line with inflation (+3.34%)

MAINTENANCE GRANT

Maintained 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?Slide7

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:-

-

right_first_time@slc.co.uk - referral via Regional AdviserNew Online Application Platform (and Application Demo)Slide8

APPLICATIONS & INFORMATION

SECTION 3Slide9

STUDENT LOAN APPLICATIONS

STUDENT FINANCE APPLICATIONS

RIGHT FIRST TIME - KEY MESSAGES

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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 NOWStudents do not need a confirmed place at university or college to apply for student financeMake 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 scholarshipsSlide10

STUDENT FINANCE APPLICATIONS

RIGHT FIRST TIME - COMPLETING AN APPLICATION

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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’s

If you can’t submit your income details online, send a photocopy

of evidence including: P60, Pay slips, Tax return, or PensionsSlide11

APPLICATION INFORMATION

COMPLETING AN APPLICATION

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NEW LOOK ‘MY ACCOUNT’

MAKING IT EASIER TO NAVIGATE & UNDERSTANDSlide13

3

NEW LOOK ‘MY ACCOUNT’

MAKING IT EASIER TO NAVIGATE & UNDERSTANDSlide14

3

NEW LOOK ‘MY ACCOUNT’

MAKING IT EASIER TO NAVIGATE & UNDERSTANDSlide15

SECTION

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STUDENT LOAN REPAYMENTSSlide16

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 REPAYMENT

STUDENT LOAN REPAYMENTS

AN 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 REPAYMENTS

THE 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 repayment

Interest rate is:

Retail Price Index (RPI) +3%

Income:

Below £21,000

Interest 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 REPAYMENTS

THE INTEREST

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Example

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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

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STUDENT LOAN REPAYMENTS

A COMPARISON…Slide20

www.studentloanrepayment.co.uk

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STUDENT LOAN REPAYMENTS

DEDICATED WEBSITESlide21

PRACTITIONER RESOURCES

SECTION 5Slide22

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PRACTITIONER RESOURCES

DEDICATED WEBSITE

www.practitioners.slc.co.ukSlide23

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 RESOURCES

SUPPORT FOR PRACTITIONERS

Practitioner Helpline:

For detailed/complex regulatory advice and particularly complex assessment enquiries -

0845 602 0583

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