HELOA Teacher and Adviser Conference Thursday 15 th May 2014 Chris Snowdon Student Finance Adviser East of England SESSION CONTENTS i The Student Finance Information Team SFIT The ID: 652922
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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
i
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
3
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
3
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
3Slide12
3
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
4
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
4Slide17
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
4Slide18
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
4Slide19
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 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
5Slide24
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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