Financing Higher Education'

1
Financing Higher Education.

• An overview of the outgoings and income support
  available

Chris Fuller 23 October 2008
2
Student Finance Direct England
3
(No Transcript)
4
(No Transcript)
5
Overview of Finances

Student finances can be sorted into two
categories

• OUTGOINGS
• Tuition Fees
• Accommodation
• Living costs
• Resources

• INCOME
• Fees Loan
• Student Loan
• Maintenance Grant
• Bursaries
• Scholarships
• Wages
• Parental support

6
Tuition Fees

• Up to 3,225 per year
• UK and EU students
• Does not have to be paid prior to study
• All students can apply for a Tuition Fee Loan

Some courses are sponsored
7
Tuition Fee Loan

• Non-Means Tested
• Paid directly to the University
• Low interest rate, set at rate of inflation
• Repayable after graduation and when earning at
  least 15,000
• 9 repayment of your annual income

8
Overview of Finances

• OUTGOINGS
• Tuition Fees
• Accommodation
• Living costs
• Resources

• INCOME
• Fees Loan
• Maintenance Loan
• Maintenance Grant
• Bursaries
• Scholarships
• Wages
• Parental support

9
Accommodation

• The second biggest expense at university is
  likely to be the rent for student accommodation.
• Exactly how much this costs depends upon
• Choice of university
• Where it is
• What facilities are chosen

10
Typical Accommodation Costs
Average UK rent for university owned
accommodation 81 per week 3159 per year
(bills included)
Average UK rent for privately owned accommodation
60 per week 2340 per year (bills not included)
Figures from NUS and Accommodation for Students
11
Typical Accommodation Costs
Figures from NUS and Accommodation for Students
12
Maintenance Grants non repayable
REDUCED TO 50,020 (29 October 2008) X
Income over 61,062
n/a
No maintenance grant payable
1,292 to 50
X 50,020
Income between 34,459 and 60,032
Receive some grant
2,824 to 1,292
Income between 25,001 and 34,459
Receive some grant
Income up to 25,000
2,906
Receive full grant
Exact figures are awaiting Parliamentary
approval (Jan 2009)
13
Maintenance Loan
An additional loan to help with living costs

• Available to home students
• Paid into students bank account in three
  instalments

• How much you can borrow depends upon
• How much Maintenance Grant you receive
• Assessed household income (25 income assessed)

14
Maintenance Loan
For students whose parental income is high and
who are not therefore entitled to receive a
Maintenance GRANT the maintenance LOAN to which
they are entitled is 75 of the maximum loan as
follows
London Parental Elsewhere home 4,982
2,755 3,558
15
Maintenance Grants and Loans

• The Maintenance Grant is not designed to increase
  the amount of money available to students, but to
  decrease the amount they need to borrow in the
  form of a Maintenance Loan

16
Maintenance Loan Grant
We are not sure whether there will be slight
changes to the rest of the figures although it
seems from the statement by the Secretary of
State that only the top threshold will be changed
and all other figures will remain constant.
John Guy, 30
October 2008
X ?50,020 X ?50,021
lower rates of maintenance loan are paid in final
year
17
Overview of Finances

• OUTGOINGS
• Tuition Fees
• Accommodation
• Living costs
• Resources

• INCOME
• Fees Loan
• Maintenance Loan
• Maintenance Grant
• Bursaries
• Scholarships
• Wages
• Parental support

18
Bursaries

• All HEIs charging full tuition fees (3,225) and
  all students entitled to the full Maintenance
  Grant (2,906) will get a bursary of at least
  310.
• Non-repayable sum
• In reality, a lot more is available
• Different Universities have different
  arrangements for the payment of bursaries
• For more information about bursaries across the
  UK please see http//bursarymap.direct.gov.uk/

19
UK Bursary Scheme

• UoS own non-repayable bursary scheme
• Household income below 25,000 or less 1,000
  bursary
• Household income 25,001 - 35,000 500 bursary

20
Hampshire and Isle of Wight Bursary - 1,000

• A new, full-time UK undergraduate student
• Living in or studying at a sixth form or further
  education college with a Hampshire/Isle of Wight
  postcode
• A UK resident (excluding the Channel Islands and
  the Isle of Man)
• The first in your family to enter higher
  education (excluding brothers and/or sisters)
• Living in a household with a total income of less
  than 35,000
• Not already receiving an NHS bursary

21
NHS Bursaries

• Some healthcare courses do not carry fees and
  have large NHS bursaries available.
• Over 7,000 available in some areas
• Contact the Student Grants Unit of NHS for more
  details on 01253 856123

22
Scholarships
Each University offers different rewards in the
form of Scholarships.
For example, The University of Southampton offers
over 1 million to the most talented students in
all subject areas.
23
Repayment in real terms

• Average Graduate salary 20,000
• Monthly repayment 37.50
• 10-15 years to repay
• Graduates can take up to 5 years worth of loan
  breaks
• Interest linked to inflation
• After 25 years, all debt is wiped clean

24
Summary

• All students can take a full tuition fee loan
• Tuition Fee Loan and Maintenance Loan are the
  only sums to be repaid
• Loans only repaid after graduation and in
  employment earning at least 15,000
• Grants, bursaries and scholarships are
  non-repayable

25
Aimee EllisStudent Finance Outreach
Officera.r.ellis_at_southampton.ac.ukTel 023 8059
9670