Student Finance 2018 Entry Laura Cragg Student Recruitment and Widening Participation
Introduction Benefits of Higher Education What do we know about 2018 entry? Loan Repayments Additional Financial Support The University of Manchester support Applying for Student Finance Further Questions
Benefits of Higher Education
Benefits of Higher Education Greater social cohesion and mobility Greater propensity to vote, volunteer and participate in public debates Less exposure to unemployment Greater propensity to live healthily Higher earnings BIS research paper #133 Things We Know and Don t Know about the Wider Benefits of Higher Education (2013)
Graduate Annual Earnings Median Gross Annual Earnings by Qualification Level and Age, Q2 2015 BIS Report Graduate Labour Market Statistics April-June Q2 2015
Graduate Annual Earnings Salary by age, for Graduates and non-graduates, Q2 2016 BestCourse4Me Comparison of data on Institution attended in the Office for National Statistics Labour Force Survey 2016
Tuition Fees and Living Costs
What do we know for 2018 entry? For UK/EU students joining undergraduate courses in 2017, the tuition fee is 9,250. We expect tuition fees to rise in line with inflation for 2018 entry. Figures for tuition fees and the government maintenance loan for 2018 entry have not been confirmed by the UK government. Once these figures have been announced, student finance information will be updated on the University of Manchester student finance web pages: www.manchester.ac.uk/studentfinance The University of Manchester financial support package has been announced and confirmed.
Tuition fees at the University of Manchester The tuition fee for full-time, UK undergraduate students has yet to be confirmed for 2018 entry. For UK/EU students joining undergraduate courses in 2017, the tuition fee is 9,250. We expect tuition fees to rise in line with inflation for 2018 entry.
Tuition fee loan Students do not need to find the money for fees up-front Loans are available, regardless of household income, up to the maximum tuition fee amount Students start to pay the loan back once they have graduated and are earning above 21,000 Student Finance England pay the tuition fee loan directly to the University
Government living cost support At the time of going to print, figures for the maintenance loan for 2018 entry had not been confirmed. All eligible students (UK), can access repayable living support from the government. The amount of support varies depending on a student's circumstances. The amount of loan will vary depending on whether a student lives away from home, lives at home with their parents or studies at a university in London.
Government living cost support Maintenance loans are available to help with living costs All eligible students (UK) can access repayable living cost support from the government Some of the support students receive depends upon parental / household income Loans have to be paid back
Household Income Assessment Whose income is assessed depends on whether the student is classified as a dependent or independent student. Household income is the total amount the student s family earns each year before tax and National Insurance. Household income is usually based on earnings for the previous tax years If the student's parents are separated or divorced, the income of the parent they are financially dependent on will be considered. The income of any relevant partner of this parent will also be considered. The income of the student's other parent will be ignored. If the student is over 25, has care of a young person or has supported themselves financially for 3 years before starting the HE course, their parental income won t be taken into account when assessing entitlement. These students are described as independent students.
Estimated living costs Costs Undergraduate year (40 weeks) Weekly cost (based on 40 weeks) Accommodation [ (selfcatered)* 4,955** 123.86 Meals (excluding meals out) 1,525 38 Clothes 400 Transport (includes local 375 Weekly bus pass from 8.00 transport and travelling home/visiting friends) Other (e.g. books, 2,000 50 equipment, mobile phone bill, socialising, laundry, photocopying and printing) TOTAL 9,255 * For catered accommodation, add approximately 900 to the annual total. ** The University of Manchester self-catered accommodation can range in price from 3,915 to 6,099
Interest-free Options Following a consultation, the government is looking to introduce a Sharia Lawfriendly model of Student Finance. No timescales have been announced but it is the Government s intention to introduce this. As the University s scholarships and bursaries are non-repayable, there is no barrier to receiving these. You must still have a full financial assessment carried out by Student Finance England in order for the University to access your household income however, you are not obliged to take out any loans with Student Finance England. Sharia Compliant Bank Accounts Many mainstream banks offer accounts and services that meet Sharia principles and there are also some specialist banks which operate in accordance with these principles. Further information can be found online: www.moneyadviceservice.co.uk
NHS financial support Students in their fifth and sixth year of Medicine or Dentistry, are currently eligible to apply for NHS funding for these years only: tuition fees paid by the NHS; be eligible to apply for a reduced government maintenance loan; be eligible for a non means-tested NHS maintenance grant and be able to apply for an NHS means-tested maintenance bursary. A Learning Support Fund is available for students domiciled in England studying eligible healthcare courses such as Nursing, Midwifery and Speech and Language Therapy. Accommodation Expenses (TDAE)- help with placement costs Child Dependants Allowance (CDA) - 1,000 grant Exceptional Support Fund for students in hardship For more information on NHS financial support see https://www.nhsbsa.nhs.uk/healthcare-students
Additional Financial Support Additional support is available if students have a disability, a learning difficulty, mental health condition or long-term health condition in the form of the Disabled Students Allowance (DSA).This can include travel allowances, specialist equipment allowances and non-medical helper allowances. Additional support is available if students have adults or children who are dependent upon them through the Parents Learning Allowance and Childcare grant and the Adult Dependents grant. Students are advised to contact their chosen University as soon as possible to enquire about additional support.
The University of Manchester Financial Support for 2018
The University of Manchester Financial Support We want to admit the most talented students, regardless of background or ability to pay. The University of Manchester is committed to providing support to students from lower income households. The Manchester Bursary Foundation Year Bursary Year abroad / Year in Industry Bursary Undergraduate Access Scholarship Household Income Assessment You must have your household income assessed by Student Finance England by 31 st May of the academic year in which you are applying for finance and agree to share this with the University. Payment of award You must have provided your bank details to the University by 31 st May of the academic year in which you are applying, or you will not receive the bursary for that academic year.
The Manchester Bursary Available to UK students registered on an undergraduate degree programme (excluding NHS funded programmes) Residual Household Income Cash bursary 0-25,000 2,000 (paid in three instalments during the academic year) Between 25,001-35,000 1,000 (paid in three instalments during the academic year)
Foundation Year Bursary Support for students enrolling on foundation Year 0 programmes in Medicine, Dentistry, Pharmacy, Biosciences, Science and Engineering Residual Household Income Cash bursary 0-25,000 4,000 (paid in three instalments during the academic year) Between 25,001-35,000 2,000 (paid in three instalments during the academic year)
Financial Support for students on a year abroad or year in industry Study programme Residual household income Cash bursary Work Placement (Erasmus) Work Placement (non-erasmus: UK or worldwide) Study Abroad (Erasmus or worldwide) 0-25,000 1,350 25,001-35,000 675 0-25,000 2,000 25,001-35,000 1,000 0-25,000 2,000 25,001-35,000 1000 For students on a year abroad/year in industry there will be reduced fees for this additional year. Further information regarding the precise level of tuition fees will be made available nearer the time students are due to undertake the additional year of study.
Undergraduate Access Scholarship The University s Undergraduate Access Scholarships are generously funded by our alumni community and donors. These scholarships are in addition to any other bursaries students may receive from the University and are awarded as follows: All students who have successfully completed the Manchester Access Programme and started an undergraduate course at the University will receive a 1,000 award in their first year. Students from households where the income is below 25,000 per year will receive the award for each year of their study. Students under the age of 25 who have been in public care for a minimum of three months since the age of 11 will receive 1,000 a year throughout the duration of their undergraduate course.
Article 26 scholarship and support for asylum seekers The University offers one article 26 scholarship to a student seeking asylum in the UK to progress into Higher Education Further information can be found below: http://www.studentsupport.manchester.ac.uk/financ es/a-z/asylum/
Other Scholarships Subject-specific Academic performance Sport Music Students should find out what support they could be eligible for at their chosen university
Student Loan Repayment
Student Loan Repayment Students will not start paying back their loans until they earn over 21,000 per annum gross ( 1,750pm) Students pay back 9% of what they earn above 21,000 They are eligible to start repayment the April after they leave / graduate (providing they earn over 21,000) Any outstanding debt is written off after 30 years
Student Loan Repayment Income each year before tax Monthly income before tax 21,000 1,750 0 22,000 1,833 7 23,500 1,958 18 25,000 2,083 29 27,000 2,250 45 30,000 2,500 67 Approximate monthly repayment
Student Loan Repayment Approximate Monthly Repayment 143 158 128 113 98 83 68 53 38 23 8 0 0 18,000 22,000 26,000 30,000 34,000 38,000 42,000 200 150 100 50 0 Repayments increase with how much a student earns, not how much they owe
Early Student Loan Repayment There will be no penalty for early repayments of Student Loans It may make more financial sense to pay back in instalments Depending what a student earns, they may never pay back the full amount
Getting a Mortgage A student loan is very unlikely to affect an individual s ability to get a mortgage Mortgage lenders usually take account of a person s monthly net income before any deductions
Key Facts on Interest
Interest on Student Loans During study until entering repayment Interest rate is: Retail Price Index (RPI) plus 3% Income below 21,000 Interest rate is: Set at RPI Only Income between 21,000 to 41,000 Interest rate is: RPI plus up to 3% Above 41,000 Interest rate is: RPI plus 3% Interest added will vary, depending on a student s circumstances The interest rate applied is updated once a year in September, using the rate of RPI from that March which is carried forward
Repayment Calculator www.moneysavingexpert.com/students
Student Loan Application Process
Application Process Students do not need to have a confirmed place on a course before they submit an application for student finance Students should be encouraged to apply early Applications usually open in February The deadline for submitting student finance applications in order to have funding in place is usually end of May Parents should be encouraged to give consent to share financial information with university speeds up allocation of scholarships and bursaries Students will receive a reminder from Student Finance England to re-apply for support for the following academic year
Application Process Before starting an application, students should have the following to hand: Passport - SFE can check identity using valid UK passport details Expected University and course details Bank account details and National Insurance number If parents or other sponsors will be supporting a student s application, they will need their own account on GOV.UK to provide information including: National Insurance number(s) Household income information Details of other child dependants If sponsors cannot submit income details online, they should send a photocopy of evidence including: P60s, Pay slips or Tax returns You don t have to submit financial information but cannot be considered for bursaries and will only receive the minimum level of maintenance loan
Information for parents To support an application, you can follow these steps: Include your National Insurance number on the student s online application If your child is applying for financial support that depends on your household income, you ll also need to register and complete a part of the application. You can also do this at www.gov.uk/studentfinance If you expect your income to drop by 15% or more, send Student Finance England a current tax year income assessment form Student Finance England may ask for more details and evidence about your income or circumstances
Application Process
Further Information www.manchester.ac.uk/studentfinance www.blackbullion.com financial education specialists, helping students gain money and budgeting skills www.manchester.ac.uk/umass University of Manchester Aspiring Students Society: advice and guidance about budgeting www.gov.uk/student-finance www.moneysavingexpert.com/students information and finance calculators www.thestudentroom.co.uk advice from peers and Student Finance England @sf_england SFEngland
Any questions?