Student Finance University Fees and Loans New arrangements for courses starting in 2012
Remember Universities will be allowed to charge UP TO £9,000 per year for tuition for courses starting in 2012 onwards That doesn’t mean they WILL charge £9,000 - so look out for decisions about fees which should be on university websites by late spring. In order to be allowed to charge the maximum amount, they will have to satisfy the Office of Fair Access that they have support in place to ensure students from low-income families are not deterred from applying.
Remember You will not have to pay anything at all until you start to earn over £21,000 and that figure will go up later in line with inflation. So, if you don’t find a job, or if you take a low-paid job, you won’t have to pay back anything. Any outstanding loan will be written off after 30 years.
Remember Remember that you will also have financial support available to you as you pay for your living costs while you study; Students from lower-income families will receive grants; everyone will be eligible for loans; many universities will offer additional bursaries and scholarships. All universities have â€˜hardship fundsâ€™.
Some examples: If you were earning £21,000 Under the old system, you would pay back around £10 a week Under the new system, you would pay back nothing
Some examples: If you were earning £24,000 Under the old system, you would pay back around £16 a week Under the new system, you would pay back around £5 a week
Some examples: If you were earning £40,000 Under the old system, you would pay back around £43 a week Under the new system, you would pay back around £33 a week
So, Because the repayment threshold has been raised from ÂŁ15,000 on the old system to ÂŁ21,000 on the new system, everyone will pay less as a weekly sum
HOWEVER You will have a larger loan to pay off than under the old system, (1) because you will pay higher fees Under the old system, after a 3-year course you would have a loan of ÂŁ10,125 for tuition PLUS any maintenance loan you take out; Under the new system, after a 3-year course you would have a loan of up to ÂŁ27,000 for tuition PLUS any maintenance loan you take out;
AND You will have a larger loan to pay off than under the old system, (2) because you will pay a higher rate of interest on your loans. The rate of interest will be variable: higher earners will pay a higher rate of interest than lower earners. Possibly the lowest earners will pay just the rate of inflation (the same as in the old system) while higher earners will pay up to 3% more.
Will I be worse off? • Everyone will pay less per week, but over the long term most will pay more money back • A significant number of students (estimates vary between 10% and 50% of the total!) will be better off under the new arrangements: they will be – students coming from low-income families, because of the amount of grants and other support they will be given – students going into unpaid or low-paid work, because they will never have to repay their loans
Need more detail??
• There is much more detailed guidance available – • On CCO, a really useful ‘Student Finance Myth Buster’, and more examples • On the BIS website http://www.bis.gov.uk/news/topstories/2010/No