Student Finance Policy Changes AY 13/14 Christine Connelly & Joanne Munro Policy Consultants SLC March 2013
Contents Policy Change England Wales Northern Ireland Full-time Support Part-time Support Align support after an event Graduate entry medical/ dental Student Contribution Loan Armed forces - residency Child of a Swiss national Distance learners Deps Grants income assessment Childcare Grant cap
2012 Cohort support - England Maintenance grant of up to 3,354. Grant available at household incomes up to 42,611 Maintenance loan available of up to 7,675 (London), 4,735 (parental home), 5,500 500 (elsewhere) Maintenance loan is 65% means tested / 35% non-means tested Grant rates for other products (inc. Childcare Grant and DSA) frozen at AY 2011/12 levels Tuition support in form of a non means-tested loan of up to 9,000
2012 Cohort maintenance s pport England 2012 Cohort maintenance support England (elsewhere rates)
2012 Cohort maintenance support - Wales Maintenance grant up to 5,161. Grant is available at household incomes up to 50,020 Maintenance loan up to 7,215 (London), 3,987 (parental home), 5,150 (elsewhere) Maintenance loan 75% means tested d/25% non-means tested Tuition support available up to a maximum of 9,000 made up of 3,575 tuition loan and 5,425 tuition grant (non means-tested) t
2012 Cohort maintenance s pport Wales 2012 Cohort maintenance support Wales (Elsewhere rate)
Targeted Grants and DSAs Wales CCG 161.50 / 274.55 per week (frozen at 11/12 levels) PLA 1,557 (3.25% uplift from previous AY) ADG 2,732 (3.25% uplift from previous AY) DSAs 21,181 181 (non medical helper allowance) 5,332 (major items of specialist equipment) 1,785 (general allowance) (3.25% uplift from previous AY)
Current system maintenance support - NI Maintenance grant of up to 3,475. Grant available at household h incomes up to 41,065 Maintenance loan of up to 6,780 (London), 3,750 (parental home), 4,840 (elsewhere) Maintenance loan 75% means tested / 25% non-means tested Grant rates for other products (inc. Childcare Grant and DSA) frozen at AY 2011/12 levels Tuition support up to 9,000 in form of a tuition loan
C rrent s stem maintenance s pport NI Current system maintenance support NI (Elsewhere rate)
Part-time support England (Students who commenced PT courses on or after 1 st Sep 2012) Tuition loan (non income assessed) up to 6,750 (Students who commenced PT courses before 1 st Sep 2012) Max Course Grant (income assessed) - 275 Max Fee Grant (income assessed) - 1,270
Part-time support Wales New and returning students Max Course Grant (income assessed) - 1,155 Max Fee Grant (income assessed) 1,025 (In addition PT CCG, PLA and ADG calculated at %age FTE course intensity) Northern Ireland New and returning students Max Course Grant (income assessed) - 265 Max Fee Grant (income assessed) - 1,230
Part time DSAs Available to eligible ibl disabled d PT students t at following maximum rates England - 15,390 (non medical helper allowance) 5,161 (specialist equipment allowance) 1,293 (general allowance) Wales - 15,885 (non medical helper allowance) 5,332 (specialist equipment allowance) 1,338 (general allowance) Northern Ireland- 15,703 (non medical helper allowance) 5,266 (specialist equipment allowance) 1,319 (general allowance)
Align payment of grants after an event WHO England Northern Ireland WHEN AY 2013/14 or later STUDY MODE Full-time
Align payment of grants after an event Where a student becomes an eligible student, as defined in the regulations, after the first day of the relevant AY, their entitlement to all maintenance support and targeted grants (including DSAs) is now aligned. The support is awarded only for the academic quarters following the date on which the student becomes an eligible student. There are eight separate events, which can occur resulting in a student becoming an eligible student (no change). Rationale - to simplify and align the award of all support products.
Align payment of grants after an event The products which h will be payable for the academic quarters which h follow the event are listed as follows: Loan for living costs (no change) Adult Dependants Grant (no change) Parents Learning Allowance (no change) Maintenance Grant (or SSG if applicable) (no longer backdated) Childcare Grant (no longer backdated) Disabled Students Allowances (no longer backdated) Grants for Travel (no longer backdated) Tuition Loans will remain to be awarded for the full academic year, when the event occurs within 3 months after the start of the relevant AY for all eligible students.
Align payment of grants after an event Student A starts a 3 year degree course in September 2011. She does not fall within any of the eligible categories set out in the regulations (E and NI) and therefore does not qualify for any support. In October 2013 her husband is granted Refugee Status and she submits an application for student support. She can apply for Tuition Loan, Loan for living costs* and Maintenance Grant Her entitlement to Tuition Loan is for the full AY, (no change) and her entitlement to Loan for living costs and Maintenance Grant is calculated only for the academic quarters which commence after October 2013. *Loan for living costs is not awarded for the academic quarter in which the longest vacation occurs.
Graduate Entry Medical and Dental WHO England Wales WHEN Starting a course in AY 2012/13 or later STUDY MODE Full-time
Graduate Entry Medical and Dental provisions In AY 2012/13, BIS, DfES and the DH implemented changes to their Regulations, to provide Graduate Entry Medical and Dental students access to Partial Tuition Loans of up to 5,535 This student support package was initially envisaged to be available to eligible Graduate Entry Medical and Dental students who started their courses in AY 2012/13 only. BIS and DfES agreed to extend this package of support beyond AY 2012/13 starters, and confirmed that eligible students who commence Graduate Entry Medical and Dental courses in AY 2013/14 and AY 2014/15 will be subject to the same arrangements which were put in place from 1 st September 2012.
Graduate Entry Medical and Dental provisions Year 1 - Student self funds the 1 st 3,465 tuition charge. SFE or SFW provide the full rate Maintenance Loan, Targeted Grants if applicable and Partial TF Loan of up to 5,535. No DH support. Years 2-4 - DH funds 1 st 3,465 tuition charge and the income - assessed NHS Bursary. SFE or SFW provide the reduced rate maintenance loan and partial TF Loan of up to 5,535
Student Contribution Loan WHO Northern Ireland WHEN Starting a course in AY 2013/14 or later STUDY MODE Full-time
Student Contribution Loan Student Contribution Loan (SCL) will replace the grant for the Registration Fee which is charged by HEIs in the Republic of Ireland. The Student Contribution Charge has been confirmed as 2,500 for AY 2013/14 (this amount is likely to be subject to an annual uplift). The SCL is a non-income assessed, repayable loan, which the student applies for through their ELB, and will be paid by SLC to the HEI. Maintenance element (Maintenance Loan and Maintenance Grant/SSG) of the support package is same as that available to all current system students from Northern Ireland who study in the UK.
Student Contribution Loan Student B starts a course at an HEI in ROI in September 2013. The household income is 10,000. Student B can receive the following Student Contribution Loan of up to 2,500 and the current system package of maintenance support, calculated as follows: Maintenance Grant Maximum maintenance grant of 3,475 as household income is less than or equal to 19,203. Maintenance Loan Maximum Elsewhere rate maintenance loan of 4,840 less the maximum loan grant substitution amount of 1,887-2,953
Student Contribution Loan Student C starts a course at an HEI in ROI in September 2012, and is continuing on the same course in AY 13/14. The Household income is 10,000. Student C can receive the following Student Contribution Charge of 2,500 paid by their ELB as a grant, HE Bursary Maximum HE Bursary of 2000 as household income is less than 11,805 M i t L M i El h t i t l i Maintenance Loan - Maximum Elsewhere rate maintenance loan is 4,840. A sum of 1,500 is subtracted when the bursary entitlement is 2,000 leaving a loan entitlement of 3,340
Armed forces - residency WHO WHEN England Northern Ireland Wales Starting a course in AY 2013/14 or later STUDY MODE Full-time and part-time
Armed forces - residency In AY 2012/13, England provide support for Armed forces personnel and their family members if they are ordinarily resident in England at the start of the course. Elsewhere in the UK support is only provided for Armed forces personnel if they enlisted while living there. From 2013/14, where a student doesn t have ordinary residence established in a domicile, they should be considered resident where they or their family member enlisted. No regulatory change required; small number of applicants likely to be No regulatory change required; small number of applicants likely to be affected.
Armed forces - residency Example - AY 2012/13 starter Living in Scotland when father enlisted in July 2010 On a posting in England since August 2011 Resident in England at the time of application, so SFE have accepted the application As a continuing student, the student remains with SFE for the duration of the course
Armed forces - residency Example - AY 2013/14 starter Student was resident in England when father enlisted in July 2011 On a temporary posting in Scotland since January 2013 Student should apply to SFE for support
Child of a Swiss national WHO WHEN England Northern Ireland Wales Starting a course in AY 2013/14 or later STUDY MODE Full-time and part-time
Child of a Swiss national Current policy AY 2012/13 Applicant must have a Swiss national parent Applicant must be ordinarily resident in the UK on the first day of the first AY of the course Applicant must have been ordinarily resident anywhere in the EEA or Switzerland for the three years before the start of the course Swiss national parent does not need to live / have lived in the UK
Child of a Swiss national Example - AY 2012/13 starter Applicant has a Swiss parent Applies for support for a course starting in September 2012 Applicant is resident in the UK on the first day of the first AY of the course Applicant has been living in France with his parents for the three years prior to the start of the course
Child of a Swiss national New policy AY 2013/14 From AY 2013/14, the Swiss parent of the applicant must be exercising their free movement rights in the UK on the first day of the first academic year of the course Students may become eligible for student support after the start of the course, if their Swiss parent moves to the UK. Change applies to new applicants only
Child of a Swiss national Example - AY 2013/14 starter Student and Swiss parent living in the UK since November 2011 Swiss parent still living in the UK on 1 st September 2013 Swiss parent moves to France on 1 st January 2014 Student is eligible for support for the duration of the course
Support for distance learning students WHO WHEN England Northern Ireland Wales Starting a course in AY 2013/14 or later STUDY MODE Full-time and part-time
Support for distance learning students Current Regulations state that Distance learners should only be supported by a UK domicile if living in that domicile (regardless of where in the UK they study). If they move out with the domicile, they would become ineligible EU students who are living in the UK and distance learning are eligible for student support from the territory they live in. If they move to a different UK territory, they should have their eligibility transferred to the new UK territory from the start of the following academic year.
Support for distance learning students New Regulations state that Distance learning students (UK domiciled) who move after the start of their course and stay in the UK should continue to be eligible for support from their original UK domicile. Distance learning students (EU students) who move after the start of their course and stay in the UK should be eligible for support from the new domicile from the start of the next academic year. Any distance learning student (UK domiciled or EU) who leaves the UK becomes ineligible, and should receive no further student support for that course.
Support for distance learning students Example AY 2013/14 English domiciled student starts a part-time time distance learning course provided by a Northern Ireland university in September 2013 Moves to Wales in February 2014; continues to be supported by Student Finance England Moves to France in November 2014; no longer undertaking the course in the UK and is therefore no longer an eligible student Temporary absences from the UK permitted
Dependants grants income assessment WHO England Northern Ireland WHEN All students (prior year income) New students (financial obligations) STUDY MODE Full-time
Dependants grants income assessment Income used in dependants grants income assessment AY 2012/13 policy Current academic year net income of partners and dependants (other adult dependants and child dependants) is used Certain regulatory disregards from income are allowed (e g disability Certain regulatory disregards from income are allowed (e.g. disability benefits and child benefit)
Dependants grants income assessment Move to prior year income new policy Partners and other adult dependants use the gross taxable income from all sources for the prior tax year Child dependants use the net income from the prior tax year Prior tax year definition: prior financial year means the financial year immediately preceding the preceding financial year
Dependants grants income assessment Declaring financial obligations AY 2012/13 policy Students declare reasonably incurred, ongoing financial obligations Evidence must be provided after the end of the academic year
Dependants grants income assessment Declaring financial obligations AY 2013/14 policy New students do not declare financial obligations (continuing students still do so) Increase in disregard from income for new students ( 5,000 increase in each case)
Dependants grants income assessment Example AY 2012/13 starter Student has a partner and two children Total net income = 15,000 (current academic year income) Total financial obligations = 2,000 Disregard applied = 4,627 15,000-2,000-4,627 = 8,373 Maximum dependants grant entitlement = 12,000 12,000-8,373 = 3,627 grant entitlement
Dependants grants income assessment Example AY 2013/14 starter Total income = 17,250 (prior financial year) Disregard applied = 9,627 17,250-9,627 = 7,623 Maximum dependants grant entitlement = 12,000 12,000-7,623 = 4,377 grant entitlement
Dependants grants income assessment Benefits of the changes to dependants grants income assessment Provide more financial certainty for the student Minimise grant overpayments Simplify the assessment process for students are assessors
Childcare grant payment weighting WHO England Northern Ireland WHEN All students from AY 2013/14 STUDY MODE Full-time
Childcare grant payment weighting Current policy AY 2012/13 85% of actual costs paid, capped at a maximum of 148.75 per week for one child 255 per week for two or more children Childcare provider does not need to be named at the start of the academic year Childcare provider details need to be submitted before a second term payment is released
Childcare grant payment weighting New policy AY 2013/14 Apply a cap on Childcare grant where no childcare provider details are given a maximum of 115 per week Cap applies to the first instalment of childcare grant only Reassess childcare grant once childcare provider details are provided Reduces Childcare grant overpayments
Childcare grant payment weighting NO. OF CHILDREN MAXIMUM AMOUNT CAPPED AMOUNT (childcare provider (childcare provider named) not named) 1 CHILD 148.75 115 2+ CHILDREN 255 115
Childcare grant payment weighting Example - AY 2013/14 starter Student has actual childcare costs of 320 per week (2 children in childcare) Submits childcare provider details 255 per week paid ( 255 cap is lower than 85% of actual costs) Doesn t submit childcare provider details 115 per week paid until childcare provider details are supplied
Christine Connelly & Joanne Munro Policy Consultants t Product_Policy@slc.co.uk 0141 306 2000 www.slc.co.uk