Keith BedellPearce

1
Variable Feesand HEI BursariesHow SLC will be
working with HEIs

• Keith Bedell-Pearce
• Chairman
• Student Loans Company

AUA Annual Conference University of Warwick
15 March 2005
2
Process design and details are still being
firmed-up in consultation with HEIs and therefore
what follows is subject to confirmation and in
some cases formal agreement from DfES.
3
The SLC Business Model
Variable Fee Loans
Apply
Assess
Pay
Collect
Bursaries and Grants
4
Shape of Student Finance from 2006
Discretionary Bursary
Statutory Bursary Max 300
Means Tested
Student Finance Grant Max 2,700
Cash
Maintenance Loan Max (2005)4195 London 5175
Repayable
Variable Fee Loan Max 3000
5
Variable fees overview
2005
Fees
New Students
3000 max
3000 max
3000 max
1200
1175
1200
1200
Pre 06 Students
Fee Loans
Up to Student Contribution
Up to Student Contribution
Up to Student Contribution
Pre 06 Students
No Loan for this year
3000 max
3000 max
3000 max
New Students
6
VF Process Outline
Before start of AY
NEW
NEW
Offer of Place (inc .VF)
VF Loan App
STUDENT
Loan Offer in Assessment Letter
HEI
SLC

• Fee Positioning Report
• for HEI planning purposes
• contains details of loan and intended private
  contribution

NEW
7
VF Process Outline
Before start of AY
NEW

• Fee Confirmation
• Course Fee
• Private contribution

STUDENT
HEI

• Note Fee Confirmation is up to HEI OFFA says
• Student must be made aware of fee obligation
  before start of course

8
Maintenance Loans
At start of AY Business as Usual
BACS Payment
STUDENT
Attendance Confirmation
HEI
SLC
Student Support Attendance Request
9
VF Process Outline
December attendance confirmation
NEW
Confirmation of loan
STUDENT
End Nov Attendance Confirmation Report
HEI
SLC

• From 1 Dec Confirmation
• Attendance
• Course
• Amount due through VFL
• VFL notification at this point is definitive

NEW

• Fee Payments
• 2 equal instalments
• Feb and May

NEW

10
VF Process Outline
Summary of whats new for HEIs
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SLC and Bursaries

• SLC can act as agent for HEIs
• - to calculate means tested elements of bursaries
• - to act as payments agent for HEIs
• No requirement to use SLC decision rests with
  HEI
• Each participating HEI will have a Bursary Agency
  Agreement with SLC containing service standards
  for each party
• Secure access through SLCs planned HEI portal
• Annual transaction fee (estimated around 10 for
  2006) per student account

12
HEI Bursaries

• Charging Variable Tuition Fees requires an Access
  Agreement with OFFA. This must include details of
  HEI Bursary arrangements
• HEIs responsible for funding their bursaries.
• Two elements to the bursary scheme, statutory and
  discretionary.
• Statutory element is the minimum that HEIs must
  provide to eligible students.
• Students must demonstrate personal eligibility to
  benefit from the scheme.
• OFFA will require HEIs to notify students of
  their bursary offer as soon as possible but no
  later than at point of registration. To include
  how much and when paid.
• Discretionary bursaries can apply to all UK
  resident students attending English HEIs.

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Statutory Bursaries

• Applies only to English resident students
  attending English HEIs
• Rees Review will recommend what happens in Wales
• Two elements needed to calculate statutory
  bursary for eligible students
• Variable fee
• Residual Household Income
• SLC will have Residual Household Income in
  Maintenance Loan Application
• If income below threshold, statutory bursary
  amount by which VF exceeds 2,700
• SLC will automatically calculate and advise HEI
  of Statutory Bursary in all eligible cases where
  application made for a Maintenance Loan and where
  HEI has a BAA with SLC.
• If HEI wants SLC to pay, HEI to advise SLC of
  amount and payment date(s)

14
Discretionary Bursaries
The Options within the SLC Bursary Agency
Agreement

• HEIs have two awards options

• Options 1 and 2 can be used for the same student
  in the same academic year

• Option 2 payments can be either
• standard amount up to qualifying threshold
• variable amount by income up to qualifying
  threshold

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Discretionary Bursaries
Option 2 payments standard amount up to
qualifying threshold
Discretionary Bursary
0
XX,000
10,000
Residual Household Income
16
Discretionary Bursaries
Option 2 payments means tested amount up to
qualifying threshold
Slope of line can be determined by each HEI
Discretionary Bursary
0
XX,000
10,000
Residual Household Income
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HEI Bursaries
Timing of Payment
HEIs decide when Bursaries are paid
VF Loan Money Instalment 1
VF Loan Money Instalment 2
VF Payments in
Private contributions
Start of AY
Confirmation of Attendance
Start of Term 2
Start of Term 3
Sept/Oct
Dec
Jan
Apr
May
Feb
?
?
?
?
Possible Bursary Payments out HEI decides
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Bursaries
Practicalities of Payment

• HEI notifies SLC electronically amounts to be
  paid under Option
  1 and/or Option 2 plus any Statutory Bursary
  payment dates
• Options for payments can be
• - one or both of attendance triggers
  (Registration or 1 Dec)
• - start of term (Spring or Summer or
  both)
• Advisable for HEI to send Student advance payment
  advice
• SLC creates BACS file for the HEI. using
  Students on-file bank account details
• On payment date, BACS debits HEI nominated
  account with payment amount and simultaneously
  pays student.
• Payment confirmation/failure report to HEI

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EU Students

• Tuition fee remission grant to be replaced by
  tuition fee loan.
• Variable Fee Loan available to new EU Students
• Fee Loan and Fee Remission Grant for existing EU
  Students
• Outcome of Bidar case will determine (possibly)
  if EU Students eligible for new maintenance grant
  or maintenance loan.
• EU Students not eligible for Statutory Bursaries
• HEIs may offer Discretionary Bursaries to EU
  students description may create entitlement for
  other EU students
• SLC will be able to pay Discretionary Bursary to
  an EU student if amount is advised under Option
  1 by HEI
• SLC will not be able to means test

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VFL Delivery Timetable
21
Variable Feesand HEI BursariesHow SLC will be
working with HEIs
AUA Annual Conference University of Warwick
15 March 2005