Money Matters

1
Money Matters

• Helen Johnson
• Student Financial Support Office
• Keele University

2
Summary of talk

• Overview of funding arrangements for 2007
• Loans for fees and maintenance
• Maintenance grant
• Bursaries
• Budgeting
• After graduation
• Any questions?

3
Key Points

• Most institutions in England are charging 3,070
  fees for 2007 and therefore have to offer a
  bursary scheme
• The Student Loans Company will provide loans for
  fees effectively no up-front payment
• Full maintenance grant of 2,765 for students
  with household income less than
• 17,910
• Partial maintenance grants for household
• income less than 38,330

4
Overview of changes

• Maximum maintenance loan level will increase to
  4,510 (outside London)
• 25 will be means-tested including grant received
• Student loan repayments start when earning
  15,000 p.a. Repayments reduced compared with
  current system
• Written off after 25 years
• Different arrangements for Health programmes

5
Loan for fees

• A loan up to the exact amount a university
  charges for their course
• Paid directly to university by the SLC
• Allows student to defer paying fees
• No means testing
• Repayable on graduation and when
• earning over 15,000 pa

6
Non-repayable maintenance grant
Non-repayable maintenance grants will be
available for students on the following basis
7
Non-repayable maintenance grant

• Estimated that 28 of new students will be
  eligible for full grant
• More than half should qualify for full or partial
  grant
• Up to 1,200 of maintenance grant will substitute
  for part of maintenance loan
• The grant is non-repayable

8
Maintenance loan
Repayable student loans for maintenance will also
be available for students on the following basis
9
Mandatory bursaries

• All institutions charging maximum fee of 3,070
  have to provide 305 in cash to students on full
  maintenance grant of 2,765
• Non-repayable and paid to the student by the
  institution or the Student Loans Company

10
Additional bursaries

• Keele is offering a range of bursaries for
  students entering in 2007
• For details, see booklet (sent with programme, or
  copies available at Reception or Student Finance
  information desk)

11
Exceptions

• BA Social Work, all nursing and midwifery
  courses, Operating Department Practice and
  Physiotherapy receive funding from the Department
  of Health (GSCC and NHS)
• Scottish and Welsh students studying in England
  should contact their LA to confirm their funding
  position

12
Where to get the information

• UCAS bursary details linked to each institution
• www.ucas.com
• DfES
• www.dfes.gov.uk/studentsupport
• Aim Higher
• www.aimhigher.ac.uk
• Student Loan Company
• www.slc.co.uk
• National Union of Students
• www.nusonline.co.uk

13
Money In

• Income available from
• Loans for fees and maintenance
• Non-repayable maintenance grant
• Bursaries
• Part-time employment (12-15 hours/week)
• Access to Learning Fund
• (non-repayable grant)
• Any other allowances e.g. DSA
• Your parents
• The banks look for the best deal
• Sponsorship/scholarships

14
Money Out

• Accommodation
• Food
• Bills (phone, insurance, TV licence)
• Books/course materials
• Clothes, including laundry
• Travel
• Social life
• Extras

15
Accommodation

• 1st instalment by early October 2007
• 2nd instalment by mid-January 2008
• 3rd instalment by end of April 2008
• Direct Debit
• -Direct Debit payments will be debited from your
  account as above.
• If you are unable to pay your fees by the
  deadlines, please notify the Finance office in
  advance if possible

16
Budgeting

• Assume money covers 40 weeks based on 2007
  figures
• Maximum loan 4510 (3495.00 home)
• If living independently 112.75 per week
• If living at home 87.37 per week
• Cost of living examples
• per week food 25-30 socialising 25
• rent 40-100 transport 15 phone 10
• per annum insurance 20
• TV licence 126.50 (2006 figure)

17
Making ends meet

• NUS card
• Rail and coach cards
• SU market place
• Second hand book mart
• Share!
• Own brand shopping
• Student offers

18
Repaying your loan and fees

• Loan repayments linked to inflation
• Deducted at source
• Payback spread over working life at 9 of income
  over 15,000
• Repayments linked to salary, starting at a
  threshold of 15,000 per year
• e.g. if earning 20,000 repay
• 8.65 per week

19
Graduate Prospects

• Once in a life-time experience
• Acquire transferable skills
• Earn more over working life
• Higher starting salary e.g. average graduate
  level starting salary 18,000- 21,000
• Income rises faster
• Graduate only route to chosen career
• Personal development

20
Thank you!

• Any questions?