2016/17

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www.gov.uk/studentfinance

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• Key Updates & Spending Review

• Full-time Student Finance Package 2016/17

• Repayment Updates

• Key Messages and Resources

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2015/16 2016/17

KEY UPDATES

POST SPENDING REVIEW

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• Government confirmed introduction of Postgraduate Loans from AY 16/17*

• Individuals able to borrow up to £10,000 (non-means tested) to contribute

to Master’s course fees and/or living costs

• Available to eligible English domiciled students studying in the UK

• Applicants must be aged under 60 on the first day of the first academic

year of the course

• Loan available for Master’s qualification (taught, research or professional) in any subject e.g MA, MBA, LLM, MRes

• 57,000 applicants estimated in first year (2016/17)

POSTGRADUATE LOANS

OVERVIEW

*To read the full government response to the Consultation on

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2016/17

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POSTGRADUATE LOANS

REPAYMENT OVERVIEW Gross Annual Income Monthly Repayment (Post 2012 UG Loan) Monthly Repayment (Postgraduate Loan) £21,000 £0 £0 £25,000 £30 £20 £30,000 £67 £45 £35,000 £105 £70 £40,000 £142 £95 £45,000 £180 £120 £50,000 £217 £145 £60,000 £292 £195

• Repayment calculated at 6% of income above £21k

• Interest calculated at RPI + 3%

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• The repayment threshold of £21,000 will be frozen until at least 2021 for all borrowers with post-2012 loans (24+ and HE)

• Introduction of maintenance support for part-time students from AY 18/19

• Removal of cap on numbers of student places for nursing, midwifery and

allied health subjects

• Switch from grant to loan funding for health students from AY 17/18 -access to 25% more financial support for health students during their studies

• Government will enable people to retrain in STEM subjects by removing

the ELQ restriction on accessing part-time tuition fee loans from AY 17/18

SPENDING REVIEW

KEY ANNOUNCEMENTS*

*To read the full government policy paper click here

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2016/17

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• Government consultation issued March 2015* addressed the scope for

expanding and simplifying current remit

• Spending Review Autumn Statement confirmed Government will expand

the remit of Advanced Learner Loans, making them available to everyone aged 19 and over, studying at level 3 to 6 to provide a clear route for

learners to develop high-level technical and professional skills

• The expanded policy will be implemented from the beginning of the

2016/17 academic year

• Learners will be able to apply for a loan for courses starting on or after the 1st August 2016, from May 2016

*Link to 24+ Government Response: March 2015

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ADVANCED LEARNER LOANS

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The administration rules will also be simplified from 2016/17:

• Concurrent study rule – learner no longer prevented from undertaking two

loans-funded courses consecutively

• Repeat study rule – learner no longer prevented from undertaking

loans-funded courses of the same type and level;

e.g. Loan 1 – Level 3 Diploma in Hairdressing Loan 2 – Level 3 Diploma in Barbering

• Maximum number of loans a learner can take over their lifetime will remain at 4

ADVANCED LEARNER LOANS

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2015/16 2016/17

STUDENT FINANCE 2016/17

CORE & EXTRA SUPPORT

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2016/17 STUDENT FINANCE

POLICY OVERVIEW

Maximum fees and fee loan will be maintained at 2015/16 levels

• Maximum fees can be charged where an institution has met

conditions on widening participation set by the Office for Fair Access (OFFA)

• Maximum non-means tested Tuition Fee Loan maintained at:

• £9,000 (£6,000) for full-time courses (alternative provider cap)

• £6,750 (£4,500) for part-time courses (alternative provider cap)

From 2017/18 institutions offering high quality teaching will be allowed to increase tuition fees in line with inflation – the government will consult on how this will be done

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2016/17

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Non-means tested and reduced rate Maintenance Loan (excluding bursary years) also increased by 2.41%

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Revised package of Maintenance Support for new entrants into Higher Education in A/Y 2016/17 (2016 Cohort)

• Maintenance Grant and Special Support Grant replaced by additional

Maintenance Loan

• The maximum level of Maintenance Loan has been increased by:

• 10.3% for those previously entitled to Maintenance Grant

• 2.41% for those previously entitled to SSG (excl those aged over 60)

• 2.41% for those previously entitled to SSG for those aged over 60

MAINTENANCE SUPPORT

2016 COHORT FULL-TIME STUDENTS

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The following students will be assessed at 2016 cohort:

• Starting a full-time (F/T) course for the first time from 1st _{August 2016}

• Starting a F/T course on 1st _{August 2016 or later, having withdrawn from}

or abandoned a previous HE course in 15/16 or earlier

• Starting a F/T course on 1st _{August or later, having transferred from}

a previous part-time course or F/T distance learning course started before 1st _{August 2016}

• Starting a F/T course on 1st _{August 2016 or later, having completed a}

part-time of full-time distance learning course which started before 1st

August 2016

MAINTENANCE SUPPORT

WHO ARE 2016 COHORT STUDENTS?

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2016/17

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The following students will be assessed at 2016 cohort, continued...

• Starting a F/T course on 1st _{August 2016 or later, having completed a}

F/T lower level course which started before 1st _{August 2016, where}

the gap in study between the two courses is more than 5 months

• Starting a postgraduate Initial Teacher Training (ITT) course on 1st

August 2016 or later

• There is NO gap year protection for students who deferred entry from

A/Y 2015/16 until A/Y 2016/17

MAINTENANCE SUPPORT

WHO ARE 2016 COHORT STUDENTS?

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2016 cohort F/T students, not eligible for benefits or aged over 60

MAINTENANCE SUPPORT

MAXIMUM MAINTENANCE LOAN RATES

Parental Home Rate:

Live at home while they study

£6,904

Elsewhere Rate:

Live and study away from home outside London

£8,200

London Rate:

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2016/17 SECTION 2 Full Year Student* Maximum Loan (100%) Non-Income Assessed (% of Max Loan) Income Assessed (% of Max Loan) Parental Home £6,904 £3,039 £3,865 Elsewhere £8,200 £3,821 £4,379 London £10,702 £5,330 £5,372 Overseas £9,391 £4,540 £4,851

*Lower amounts available for final year students

2016 cohort F/T students, not eligible for benefits or aged over 60

MAINTENANCE SUPPORT

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The income assessment for full year and final year rates of loans for living costs is calculated as follows:

MAINTENANCE SUPPORT

MAINTENANCE LOAN ASSESSMENT

Applicable Reduction Maximum Income

Threshold*

Parental Home £1 loan reduction for every complete

£8.59 income increase above £25,000 £58,201 and over

Elsewhere £1 loan reduction for every complete

£8.49 income increase above £25,000 £62,180 and over London £1 loan reduction for every complete

£8.34 income increase above £25,000 £69,803 and over Overseas £1 loan reduction for every complete

£8.41 income increase above £25,000 £65,797 and over

*After which point only the non income assessed Maintenance Loan is

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2016/17

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Household

Income Home Elsewhere London

£25,000 & under £6,904 £8,200 £10,702 £30,000 £6,322 £7,612 £10,103 £35,000 £5,740 £7,023 £9,503 £40,000 £5,158 £6,434 £8,904 £45,000 £4,576 £5,845 £8,304 £50,000 £3,994 £5,265 £7,705 £55,000 £3,412 £4,667 £7,105 £60,000 £3,039 £4,078 £6,506

2016 cohort F/T students, not eligible for benefits or aged over 60

MAINTENANCE SUPPORT

MAINTENANCE LOAN ENTITLEMENT

For an accurate indication of Maintenance Loan entitlement, link to: https://www.gov.uk/student-finance-calculator

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SECTION 2 Household Income Continuing Student* 2016/17 New Student 2016/17 £25,000 & under £7,572 £8,200 £30,000 £7,099 £7,612 £35,000 £6,625 £7,023 £40,000 £6,152 £6,434 £45,000 £5,651 £5,845 £50,000 £5,117 £5,256 £55,000 £4,583 £4,667 £65,000 £3,820 £3,821

*2012 Cohort F/T Student - Elsewhere Rates

MAINTENANCE SUPPORT

COMPARISON

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2016/17 SECTION 2 Full Year Student* Maximum Loan (100%) Non-Income Assessed (% of Max Loan) Income Assessed (% of Max Loan) Parental Home £8,144 £3,039 37.3% _£5,105 62.7% Elsewhere £9,347 £3,821 40.9% £5,526 59.1% London £11,671 £5,330 45.7% _£6,341 54.3% Overseas £10,453 £4,540 43.4% _£5,913 56.6%

*Lower amounts available for final year students

2016 cohort F/T students, eligible for benefits, not aged over 60

MAINTENANCE SUPPORT

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Household Income Income Assessment Total

£25,000 & under £0 £3,469 £30,000 £915 £2,554 £35,000 £1,831 £1,638 £40,000 £2,747 £722 £43,668 £3,419 £50 £43,669 n/a £0 £50,000 n/a £0

2016 cohort F/T students, aged over 60

MAINTENANCE SUPPORT

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2016/17

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Full Year Student Sandwich Year*

Parental Home £1,863

Elsewhere £2,483

London £3,487

Overseas £2,970

Final Year Student Sandwich Year

Parental Home £1,414

Elsewhere £1,936

London £2,669

Overseas £2,170

MAINTENANCE SUPPORT

REDUCED RATE MAINTENANCE LOAN RATES

*Eligible students on full-year sandwich course paid placements where periods of F/T study are less than 10 weeks in aggregate

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Students may be eligible for the Long Courses Loan if studying a full time HE course where the A/Y exceeds the standard 30 weeks and three days

• Students can get a fixed amount per extra week of study*

• The amount depends on where the student lives and household income

Student Lives & Studies Weekly Amount Student Lives & Studies Weekly Amount

Parental Home £57 (£56) Elsewhere £88 (£86)

London £113 (£110) Overseas £122 (£119)

LONG COURSES LOAN 2016/17

OVERVIEW

*Up to 45 weeks. Students studying for 45 weeks or more in any

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If the household income is below £39,796, maximum loan amount available per additional week – then reduced by £1 for every additional £8.97

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2016/17 SECTION 2 Allowance Part-Time Max Support Full-Time Max Support Frequency of Payment Non-medical personal helper £15,543 £20,725 Annual

Specialist equipment £5,212 £5,212 Duration of

Course Other disability-related

expenditure £1,305 £1,741 Annual

Disability related travel No Limit – Reasonable spending can

be claimed

DISABLED STUDENTS’ ALLOWANCES

2016/17 MAXIMUM RATES

For both full-time and part-time postgraduate students, there is a single allowance of up to £10,362 a year

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Childcare Grant:

Based on 85% of actual registered/approved childcare costs up to

maximum of: £155.24 per week for one child

£266.15 per week for two or more children Parents’ Learning Allowance:

Help with course-related costs for students with dependent children Amount received will be between £50 and £1,573

Adult Dependants’ Grant:

Normally for the student’s partner. Can be for another adult who is

financially dependent on the student where the adult’s net income is not more than £3,796 p.a. Maximum grant available: £2,757

DEPENDANTS’ GRANTS

POLICY OVERVIEW

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2016/17

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Students must be accepted for an NHS funded place on a full or part time course which leads to professional registration as a:

• Doctor or dentist (they will be eligible for an NHS bursary after the 4th year of their course)

• Chiropodist (including podiatrist), dietician, occupational therapist, orthoptist, physiotherapist, prosthetist, and orthotist, radiographer, radiotherapist, audiologist or a speech and language therapist

• Dental hygienist or dental therapist

• Nurse, midwife or operating department practitioner

NHS FUNDING

ELIGIBLE COURSES

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SECTION 2 Non means-tested Grant Means tested Bursary Non means-tested Loan London £1,000 £3,191 £3,263 Not London £1,000 £2,643 £2,324 With Parents £1,000 £2,207 £1,744

Courses of up to 30 weeks and 3 days 2015/16 figures:

Courses of up to 30 weeks and 3 days 2016/17 figures:

Non means-tested Grant Means tested Bursary Non means-tested Loan

London To be announced To be announced _£3,263

Not London To be announced To be announced _£2,324

NHS FUNDED COURSES

HELP WITH LIVING COSTS

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2015/16 2016/17

STUDENT LOAN REPAYMENTS

OVERVIEW

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Completion of HE Qualification:

When the student completes their HE qualification, SFE will identify if the student had previously completed a “QAA Access to HE Diploma”

A student will be regarded as completing their HE course when they have not withdrawn and all payments have been made

SFE will contact eligible students, to advise them their outstanding “QAA Access to HE Diploma” loan balance will be written off

There is no financial limit to the amount of loan SFE will write off, therefore the full outstanding balance of “QAA Access to HE Diploma” loan(s) can be written off

STUDENT LOAN REPAYMENTS

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2016/17

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The Financial Conduct Authority has confirmed in it’s Mortgage Market Review that student loan repayments have to be included as ‘committed expenditure’ in mortgage applications

• While this may effect how much a graduate can borrow, it does not mean

they can’t or won’t be able to successfully secure a mortgage

Quote from the Council of Mortgage Lenders:

• ‘Student loan debt is treated in the same way as other types of debt,

and regular repayments will reduce the disposable income, which is used in the income multiple/affordability calculation’

STUDENT LOAN REPAYMENTS

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2016/17

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Interest levels will depend on a students income and circumstances:

Interest rate is: Set at RPI Only

During study until entering repayment

£

Income: Under £21,000

£

Income: £21,000 to £41,000

£

Income: Over £41,000

£

Interest Rate:

Retail Price Index +3%

%

Interest Rate: RPI Only

%

Interest Rate: RPI + up to 3%

%

Interest Rate: RPI +3%

%

The interest rate is updated once a year using the RPI figure from March

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STUDENT LOAN REPAYMENTS

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2016/17

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First cohort of students who took out loans to pay £9000 fees will enter repayment in April 2016:

• We want to ensure students understand what

this means for them, and how much they are likely to repay

• Dedicated resource to support this strategy

• Animated elements

• App-like menus - Button link pack will allow it to be easily embedded on your website

STUDENT LOAN REPAYMENTS

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Info-graphics break down complex information into easy to understand detail, helping customers understand the realities of their repayments: A sliding scale tool will help customers estimate how much interest they are being charged and what their monthly repayment will be, based on potential earnings:

STUDENT LOAN REPAYMENTS

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2016/17

STUDENT FINANCE 2016/17

KEY MESSAGES & RESOURCES

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• The easiest way to apply is online at gov.uk/studentfinance

• It can take up to least six weeks to process an application so apply early • Do not wait for a confirmed offer to apply for student finance

• Apply with preferred choice, details can be changed later if needed

• Monitor and make any changes yourself to your online account

• Re-apply each year

• Parents/partner can submit details online too – no evidence needed

• Apply by the relevant deadline:

• 27 May 2016 for new full-time students

• 24 June 2016 for continuing full-time students

HELP EMBED KEY MESSAGES

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2016/17

SFE RESOURCES

DEDICATED PRACTITIONER WEBSITE

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A range of student finance resources are now available for academic year 2016/17

• Quick Start Guides available to order in hard

copy - SFE Quick Guides

• Full suite of fact sheets

• Presentations

• Student Finance films

• Exchange, the Practitioners E-Mag

RESOURCES

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2016/17

Practitioner Helpline:

The SFE Practitioner Helpline and email box is for detailed or complex regulatory advice (not an alternative to the Customer Helpline)

Email: [email protected]

Phone: 0300 100 0618 (Monday to Friday – 10am to 4pm)

Regional IAG Partner Account Manager:

For further advice and support with SFE resources, policy and processes

Katy Barge – West Midlands

Email: [email protected] Phone: 07827 449 280