A Guide to Student Finance – 2014/15 Catherine McNicholl, Outreach Officer
Dec 15, 2015
A Guide to Student Finance – 2014/15Catherine McNicholl, Outreach Officer
Aim:
At the end of this session, you will have a better understanding of the funding options available to enter higher education (except courses in Nursing, Physiotherapy and Dental Hygiene and Therapy)
Main costs Tuition fees Living expenses
Financial support
Non-repayable Grants Scholarships Bursaries
Repayable with interest Loans
Student Finance
Tuition Fees – UK/EU
The tuition fee for all our full-time undergraduate courses is £9,0009,000Living costs
Accommodation/rent Travel Study materials Food/clothes/socialising etc
How much does it cost to attend University
How can you afford it?
Tuition Fee Loan
Loan to pay for your University fees
Living Cost Loan
Loan to pay for living costs
Living Cost Grant
Free money that you don’t have to pay
back
Bursaries & Scholarships
Help from universities – free money
students / parents DO NOT have to pay any fees up front
Tuition Fee Loan
Universities can charge up to a maximum of £9000 per year for a full time degree programme. The
Tuition Fee Loan is NOT means tested
Student Finance England
University
Student
How can I fund my living expenses?
Loans are available from the government (Student Finance England)
Maintenance loan (UK only)
65% is non-means tested
The amount you can borrow is determined by your household income and where you choose to study
The loan is paid directly to you in three instalments Up to £5,555 if living away from home & outside London Up to £4,418 if living at home
Other ways to manage your living costs
Part-time job Supplement your income and help you to gain valuable work experience
No more than 15 hours a week during term time
You need to apply for student finance before you start your course
Living at home
(£58,195)
Living away from home(£62,125)
Living in London
(£69,745)
Maximum per year
£4,418 £5,555 £7,751
65% guaranteed
£2,871 £3,610 £5,038
35% means tested
£1,547 £1,945 £2,713
Living Cost Loan 2014-15
Is there any additional support?There are a number of non-repayable allowances available to students from lower-income backgrounds to help with their living expenses
Grants available from the government (Student Finance England)
Maintenance grant(UK only)
The amount you receive is determined by your household income
The grant is paid directly to you in three instalments £3,387 for household incomes up to £25,000 Between £50 and £3,354 for household incomes above
£25,001 up to £42,620
Extra help for those with special circumstances
If you have children or adult dependants, a disability, mental health condition or specific learning difficulty there may be additional support available.
There are also NHS-funded bursaries available to students studying Medicine or Dentistry (and potentially Social Work) in the latter years of their degree.
Full-time student – household income
Grant for courses from September 2014
£25,000 or less £3,387
£30,000 £2,441
£35,000 £1,494
£40,000 £547
£42,620 £50
Above £42,620 No grant
The University offers a range of awards to undergraduates depending upon your income background, accommodation choice, academic performance and course.
Extra help from the University
Chamberlain Awards
Household income Value of award
Less than £25,000 £2,000
Between £25,001 and £36,000 £1,000
Chamberlain Awards are paid as a cash bursary in two instalments. If you are registered on a teacher training or NHS funded programme; progressing from a foundation degree; transferring from another institution or studying for a 2nd degree, you will not qualify for a Chamberlain Award. Graduate entry medical students may qualify in year 1 only Medical and dental students on standard programmes may qualify in years 1 – 4 only Social work students may qualify in year 1 only
Subject-based scholarships
Music scholarships
Sport scholarships
Lloyds Scholars programme
Other bursaries and scholarships
When and how to apply for loans and grants
You should apply as soon as you've applied for your course
Apply online at www.direct.gov.uk/studentfinance
Student Finance England (or relevant SLC agency) will confirm if you qualify for a loan or grant once you have completed your application
Applying for financial support
Interest is charged at the rate of inflation plus 3% from the date the loan is paid out until the April after you have left University
Interest rates
From this date you will be charged:
rate of inflation
(if earning up to £21K)
rate of inflation plus up to 3%
(if earning between £21,001 and £41,000)
rate of inflation plus 3%
(if earning above £41,000)
Loan repayment
You will only start to repay your student loans (tuition and living costs) in the April after you have left University and are earning more than £21,000 per year
Loans are repaid at a rate of 9% for incomes above this threshold
If your income drops below £21K repayments are suspended
Repayments are calculated on a sliding scale and will be deducted automatically from your pay packet
All outstanding amounts are written off after 30 years
No charge is made for an early repayment
Repayment ExamplesSALARY Amount of salary from
which 9% will be deducted
Monthly Repayment
£25,000 £4,000 £30.00
£30,000 £9,000 £67.50
£35,000 £14,000 £105.00
£40,000 £19,000 £142.50
£45,000 £24,000 £180.00
£50,000 £29,000 £217.50
£55,000 £34,000 £255.00
£60,000 £39,000 £292.50
What our students say …
“Parking on campus
was a cost I hadn’t
budgeted for. Also I
didn’t realise how
expensive TV
Licenses were!”
“If you're doing an art and design course, costs can quickly build up. In my case, we had to pay a £75 school levy [for materials] and during my first week we were told that we should buy a £50 tool kit for the workshops. Adding the cost of printing, my extra expenses reached about £450 in my first year”
What our students say …
“Don't buy what you don't need. Also remember that you're only in one room for 9 months of the year and anything you put in the room has to be moved out again at the end of the academic year. The more you buy now, the more hassle it is at the end shifting it back home.”
“Only eat out when
there are deals on;
buy one get one
free or 20% off for
students.”
“Nights-out are a
money-sink. Best
way to cut the costs
but still enjoy the fun
that they bring is to
throw house
parties!”
What our students say … “At the end of first year, it
was quite a shock to find out how much I had
spent throughout the year on living expenses, something
you don't really appreciate until you leave home!”
“Temptation is always round the corner but a good way to catalogue
your spending is by keeping receipts and writing down your overall weekly spending so later on you'll know what
to rule out and what to go for.”
Key points and Contacts
Education is still free at the point of entry
Graduates (not students) repay loans
Repayment is based on earnings not the amount of loan taken
After 30 years the debt is written off
www.birmingham.ac.uk/ugfunding
https://www.gov.uk/student-finance
www.studentfinancecalc.com
Quiz-based interactive game
Helps to improve your knowledge of finance at University and beyond
Play the game at
www.birmingham.ac.uk/cashclever