loan information - Grimsby Institute of Further & Higher Education

If I am working in a lower income job,how will I be able to live with theseheavy debts?Compared to the old system, it will be a lot easier because you willhave more cash. The new system is a better system for people inlower income jobs because you will re-pay less.All tuition fees are set at £9,000.FALSETuition fees vary at different institutions and the great news istuition fees at the University Centre Grimsby are £3,000 less thanmost universities who charge the top rate of £9,000.I won’t be able to go to university becauseI can’t afford to pay the tuition fees?You donʼt have to have the money to pay the fees to go touniversity. The money for the fees will be paid by the student loanscompany. That money will then go onto a student loans accountfor you.FALSEI am already at university, but the new feesthat are coming are so expensive I won’tbe able to do my degree.FALSEIf you are already at university your fees wonʼt change.The new tuition fee system will only affect new 2012 applicantsto university. Existing students will pay the old fees and still fallunder the old funding system.There is a limit on how many peoplecan get a student loan?FALSEAll eligible students will be entitled to a student loan.

Not all students can get a student loan.TRUEYou have to be eligible to receive a student loan. Whetheryou are eligible will depend on factors including where you live,the course you choose to study, where you study, and whetheror not you already hold a higher education qualification.Tuition fees will have to be paidbefore I start the course.You pay nothing until you have left the course and earn over£21,000. If for any reason your income falls below £21,000, yourrepayments will be suspended. All outstanding repayments will bewritten off after 30 years.FALSEThe repayments are going to bewith high interest rates.Interest on your loan will be charged at inflation plus3% while you are studying, and up until the April after you leaveuniversity.FALSEIf you earn between £21,000 and £41,000, you will be chargedinterest on a sliding scale up to a maximum of inflation plus 3%.You only start to repay once you leave university in the Aprilfollowing completion of your programme and if you are earning over£21,000. You will repay 9% of everything earned over £21,000.If you earn less than that you do not have to repay. The loan isrepaid by the Inland Revenue via the tax system. It comes out ofyour payroll like tax on what you earn.Debt collectors will come roundif the loan isn’t paid.FALSEThere are never debt collectors for student loans. No debtcollector will ever knock on your door because the re-payment istaken through the payroll.

I will have to continueto make repaymentsuntil the loan is paid off.FALSEThe debt is wiped after 30 years andit isnʼt passed down to your descendantsshould you die.The repayments will be more as interestincreases and it will make a big differenceto my earnings if I am in a lower income job.FALSEMost people wonʼt pay off all the debt. Interest accruing has nobearing on repayments, only the amount you earn over £21,000affects this - i.e. the more you earn the more you repay regardlessof the amount owed.In real terms what would Iactually pay back monthly?Repayments will be 9% of income above £21,000, so the amountrepaid each month will depend on earnings. For example, if youearn £21,500 – you would initially make repayments of just £4 permonth. The monthly repayment would increase to £23 if earning£24,000 per year; £30 on a salary of £25,000; £45 on £27,000;and £68 on £30,000 and so on.It’s better to pay the tuition fees myself if I can,rather than take the student loan to pay the fees.Financially it is better to take the student loan. If you neverearn over £21,000 you will never have to pay it back, so you couldpay for something that never needed paying.FALSE

The interest rate on a student loan is high.FALSEThere is a maximum rate based on the Retail Price Index(RPI), plus 3% (e.g. the rate of inflation plus 3%).Why am I going to have to re-payover a longer period for the loans?Because you are borrowing more in the first place, there is realinterest added on top of it and you are re-paying less each year.The student loan debts will impacton my ability to get a mortgage.Itʼs not about the total size of the debt itʼs about there-payment, you will repay £540 less under the new system thanunder the old one. In other words, initially at least, graduates willhave more disposable income, a better ability to save for a depositand more money to be able to repay their mortage than they dounder the old system.FALSEThe impact of the new systemcompared to the old system isrelatively negligible. Yes youʼllhave a bigger outstanding debtfor a longer period of time but youhave more disposable incomebecause you are only paying itwhen earning over a higherthreshold. This should not haveany impact on someoneʼs abilityto get a mortgage.

Part-time Tuition Fees aregoing to increase like Full-timeTuition Fees.TRUEHowever, part-time students will nothave to pay up front. They will be able toget a tuition fee loan in the same wayas full-time students, again paid back onceyou are earning over £21,000 repaid at 9%above everything you earn over £21,000.The new system is betterthan people perceive it to be!Are all accommodation costs the same?No, accommodation costs vary from institution to institution.However, living costs may be reduced significantly if you chooseto study locally and not move away from home.Moving away from home will be too costly?You can get a loan for living costs which can help cover youraccommodation, food, travel and course materials. You may alsoqualify for an income-assessed non-repayable grant to help meetthese costs.

CONTENTSWHAT FINANCIAL HELP COULD I GET IF I STUDY FULL-TIME?Tuition Fee Loan Page 3Maintenance Grant (or Special Support Grant) Page 3/4Maintenance Loan Page 4Disabled Studentsʼ Allowance Page 4Parentsʼ Learning Allowance Page 5Childcare Grant Page 5Adult Dependantsʼ Grant Page 5Access to Learning Fund Page 5National Scholarship Programme Page 6Council Tax Relief Page 6Child Tax Credits Page 6Student Finance Package Breakdown Page 7WHAT FINANCIAL HELP COULD I GET IF I STUDY PART-TIME?Tuition Fee Loan Page 8Disabled Studentsʼ Allowance Page 8LOAN INFORMATIONLoan Interest Page 9Loan Repayment Page 9WHERE DO I APPLY FOR FUNDING?Student Finance England Page 10PROFESSIONAL AND CAREER DEVELOPMENT LOAN Page 11STUDENTʼS FINANCIAL OBLIGATIONS Page 12WITHDRAWING FROM THE COURSE Page 12EQUIVALENT OR LOWER QUALIFICATIONS Page 13STUDENT BUDGET PLANNER Page 14Notes Page 15/161

INTRODUCTIONIf the thought of being able to afford to progress intoHigher Education is just a distant dream, then think again.The Grimsby Institute Group has announced its intentionto set its Higher Education tuition fees at £5,950 from September2012. The Institute, which is one of the largest providers of HigherEducation in Further Education in the country, offers a wide rangeof Foundation, honours and masters degrees to over 2,000students each year. The £5,950 fee is around £3,000 less than theGovernmentʼs maximum fee limit and demonstrates the Instituteʼscontinued commitment to offering outstanding quality highereducation at an affordable price to its students.We believe that this lower fee level, together with governmentsupport available, will make studying at the University CentreGrimsby a highly attractive option for people who want to invest intheir future.You can also choose to study on a part-time basis and fees varydependent on the intensity you wish to study.For information regarding fees contact ourHE Admissions Team on 0800 328 3631.2

WHAT FINANCIAL HELP COULD I GETIF I STUDY FULL-TIME?There is plenty of financial support on offer for full-time students includingstudent loans and a £3,250 non-repayable grant. There is also additionalhelp for students with disabilities, children or adult dependants plus counciltax relief.TUITION FEE LOANYou wonʼt have to find the money to pay foryour fees before or whilst you are studying.All eligible students can get a repayabletuition fee loan to cover the fee. This moneyis paid direct to the University and you will nothave to begin repayments until you have leftthe course and are earning over £21,000.NOUPFRONTFEES!MAINTENANCE GRANT (OR SPECIAL SUPPORT GRANT)This helps cover your living costs throughout the academic year and you donot have to pay it back. The maximum grant for 2012/13 is £3,250. How muchyou receive is dependent on your household income.HOUSEHOLD INCOMEHOW MUCH?£25,000 or less £3,250Between £25,001and £42,600More than £42,600Partial grantNo grantThe amount of maintenance grant you receive will affectthe amount of maintenance loan you can borrow.The loan will be reduced by £0.50 for every £1 of grantreceived.NONREPAYABLE!3

The Special Support Grant replaces the maintenance grant and is not inaddition. The amount you receive will not affect the amount of maintenanceloan you can borrow. To qualify for this you will be claiming income relatedbenefits. Students who are likely to qualify include:• Single parents• Other student parents - if they have a partner who is also a student• Students with certain disabilitiesThere are additional groups that could qualify, to check if you qualify contactStudent Finance England on 0845 300 50 90MAINTENANCE LOANThis helps cover your living costs throughout the academic year. How muchyou get depends on where you will be living whilst studying and yourhousehold income. The maximum amounts for 2012/13 are:Living at your parentʼs home - Up to £4,375Living elsewhere or in your own home - Up to £5,500You will not have to begin repayments until you have left the courseand earn over £21,000.21 year old Matt currently lives with his mum and has chosen to study locally."My mum's income is £17,500 which means I receive£3,250 non repayable grant and a £2,750 loan."DISABLED STUDENTS’ ALLOWANCEIf you have a disability, mental health condition or specific learning difficultyyou can apply for this non-repayable grant. It can help pay for the extra costsyou may have during your course as a result of your disability, mental healthcondition or specific learning difficulty. This is paid in addition to the standardstudent finance package and does not depend on household income.For more information you can visit the direct.gov website ʻfinancial help fordisabled studentsʼ.4

PARENTS’ LEARNING ALLOWANCEThe Parentsʼ Learning Allowance is an additional grant availableto full-time students with dependant children. You couldreceive between £50 and £1,508 for 2012/13 and howmuch you get depends on your household income.This is paid on top of the standard student financepackage, and doesn't have to be paid back.CHILDCARE GRANTThe Childcare Grant helps with the cost of childcarewith a registered or approved childcare provider. If youqualify, the Childcare Grant could cover as much as 85% ofyour childcare costs during term time and holidays - up to a maximum of£148.75 per week if you have one child, or £255 per week if you have two ormore children. How much you get depends on your household income – andthe actual costs of your childcare. Any help you get is paid on top of thestandard student finance package, and does not have to be paid back.ADULT DEPENDANTS’ GRANTNONREPAYABLE!ACCESS TO LEARNING FUNDThis is a government fund available throughthe University Centre Grimsby and provideshelp for students who are suffering financialhardship whilst studying. After assessmentstudents may receive either a non-repayablegrant or short term loan.The Adult Dependants' Grant could provideextra help if you are a full-time Higher Educationstudent with an adult who depends on youfinancially. An adult dependant could be apartner or another adult who depends on youfinancially. This will usually be a member ofyour family, but you cannot count grown-up sonsor daughters as adult dependants. The amountyou can get depends on your income and theincome of your dependants. The maximum for2012/13 is £2,642. You do not have to repaythis grant.5NONREPAYABLE!

NATIONAL SCHOLARSHIP PROGRAMMEAlongside having the lowest course fees in our area, University CentreGrimsby is delighted to announce weʼre offering a scholarship scheme inconjunction with the National Scholarship Programme.University Centre Grimsby is giving the chance for 28 Further Educationstudents to continue their studies at the University Centre Grimsby, with afantastic monetary award to help them, and their families, cover the cost oftheir education. The University Centre Grimsby is offering all eligible learnersthe chance to apply for the National Scholarship Programme, and if theyʼresuccessful they will receive;• £3,500 reduction in tuition fees• £1,000 support paymentPlease call the University Centre Grimsbyʼs HE Admissions Team on0800 328 3631 for more details.COUNCIL TAX RELIEFYou may be able to get Council Tax relief depending on the number of adultsin the household. A full Council Tax bill is based on two adults living in ahousehold, full-time students arenʼt ʻcountedʼ towards this number - if thereʼsfewer than two the household can get a discount. To apply you need to takea certificate from the University Centre Grimsby (available after the start ofthe course) to your local Council Tax office.CHILD TAX CREDITSStudents with children may also be eligible for Child Tax Credits fromHM Revenue & Customs. To find out more visit www.hmrc.gov.uk/taxcreditsor call them on 0845 300 3900."I'm a single mum returning to study.I get £5,500 loan, plus SpecialSupport Grant £3,250, Parent'sLearning Allowance £1,508,85% towards the cost of mychildcare, plus Council Tax Relief."6

STUDENT FINANCE PACKAGE BREAKDOWN7

WHAT FINANCIAL HELP COULD I GETIF I STUDY PART-TIME?TUITION FEE LOANFrom September 2012 new part-time students can applyfor a tuition fee loan to cover their tuition costs. To qualifyyou must complete a minimum of 25% of the equivalentfull-time course load per year. No grants or loans areavailable for living expenses.NOUPFRONTFEES!DISABLED STUDENTS’ ALLOWANCEIf you have a disability, mental health condition or specific learning difficultyyou can apply for this non-repayable grant. It can help pay for the extra costsyou may have during your course as a result of your disability, mental healthcondition or specific learning difficulty. This is paid in addition to the tuitionfee loan and does not depend on household income.For more information you can visit the direct.gov website ʻfinancial help fordisabled studentsʼ.Fred, 38, works full-time and is looking to progress in his career inthe caring profession by studying part-time for a Social Care degree."Receiving the Tuition Fee Loan so I don't have to payup front fees has enabled me to do this."8

LOAN INFORMATIONLOAN INTERESTStudent loans are not like commercial loans. They are subsidised by theGovernment and attract a low cost interest rate. This interest rate is basedon the annual March Retail Price Index (RPI) so in real terms what yourepay is worth no more than the money you originally borrowed.WHILST STUDYINGUp until the April after leaving University Rate of Inflation (RPI) + 3%AFTER LEAVING UNIVERSITY (Following April)Earnings below £21,000 Rate of Inflation (RPI)Earnings £21,000 - £41,000 Rate of Inflation (RPI) +3%(on a sliding scale depending on income)Earnings above £41,000 Rate of Inflation (RPI) + 3%LOAN REPAYMENTRepayments of the tuition fee and maintenance loan will not need to be repaiduntil the April after you have left the course (or the third anniversary of the startdate, if study is continuing for part-time students) and earning over £21,000 ayear. At this point the money will be deducted from your salary by youremployer, just as they will deduct your tax and national insurance payments.The amount you repay is linked to your annual income and is currently 9%of all earnings above the £21,000. The more you earn the more you repay.The table below shows typical repayment amounts.Income each year Monthly salary Approximatebefore taxmonthly repayment£18,000 £1,500 £0£21,000 £1,750 £0£24,000 £2,000 £23£27,000 £2,250 £45£30,000 £2,500 £68£33,000 £2,750 £90£36,000 £3,000 £113£40,000 £3,333 £1439

WHERE DO I APPLY FOR FUNDING?Student Finance England University Centre Grimsby Local Council Tax OfficeTuition Fee Loan National Scholarship Programme Council Tax ExemptionLiving Cost GrantAccess To Learning FundSpecial Support GrantLiving Cost LoanDisabled Students AllowanceParents Learning AllowanceChildcare GrantAdult Dependants GrantStudent Finance England is a partnership between the Department forInnovation Universities and Skills and the Student Loans Company Ltd toprovide financial support on behalf of the government to students enteringhigher education in the UK.Higher education students from England can use its secure system to applyfor finance online - parents and partners can also support an applicationonline. Student Finance England will help you work out the financial supportyouʼll get, apply for finance and keep track of your payments. You can:• Create an online student finance account and use it to applyearlier than in previous years.• Manage your student finance account online.• Use the Student Finance Calculator for a quick guide to how muchyou can get.Visit: WWW.DIRECT.GOV.UK/STUDENTFINANCETo start your application today, do not wait until you have been acceptedon the course!There are so many options available, donʼt be put off at the first hurdle.Our Higher Education Admissions & Administration Office can help youwith all financial matters. Please contact us on 0800 328 3631.Alternatively visit: www.direct.gov.uk/studentfinance or contact the StudentFinance Englandʼs Customer helpline 0845 300 5090.Your goals may not be as hard to reach as you think!10

PROFESSIONAL AND CAREER DEVELOPMENT LOANThis could help you pay for a postgraduate qualification (i.e. masters) or anadditional degree (if you are already a graduate). Itʼs a bank loan between£300 and £10,000 which youʼll have to pay back once youʼve left your course.However, you donʼt pay interest for the period when youʼre learning, plus onemonth, this is paid by the Young People's Learning Agency (YPLA). Afterthis, youʼll pay interest at the rate fixed when you took out the loan. Interestrates on the loans are set so theyʼre competitive with other ʻunsecuredʼpersonal loans that are commercially available.You can use a Professional and Career Development Loan to help with:• Course fees (up to 80% of the total - or up to 100% if youʼve beenunemployed for three months).• Other course costs, like books, travel and childcare.• Living expenses, like rent, food and clothing (if you are unemployed orworking less than 30 hours per week).Professional and Career Development Loans are intended to help with coststhat arenʼt covered by other sources of public funding. For example, youcouldnʼt get one if youʼre planning to study full-time for a first degree (becausethereʼs a separate package of student loans available). However, if yourcosts are only partly covered you may be able to ʻtop upʼ the funding with aProfessional and Career Development Loan. For example, if youʼre getting agrant for your course fees, you could apply for a loan to help with your livingcosts.Call 0800 100 900 for more information11

STUDENT’S FINANCIAL OBLIGATIONSAs part of the contract you sign with Student Finance England you must tellthem about changes in your circumstances. For example:• Name, home or term-time address, phone number or the bank details.• University or College.• The course you are studying.• Whether you live in your parental home, halls of residence, lodgingsor your own home during term time.• The academic year in which you will begin your course.• Start or end dates of your course have changed.• You do not begin to study, leave your course or are expelled.• You are absent from your course for more than 60 days because ofillness or any other reason.• You get married and your name changes.WITHDRAWING FROM THE COURSETuition fees will be charged if you withdraw after enrolling on a course.You will need to check with Student Finance England whether you will still beeligible to receive a tuition fee loan and any overpayment you have receivedwill be claimed back immediately.If you owe money to the University Centre Grimsby this will prevent you beingable to attend the Graduation ceremony and your certificates will be withheld,it may also result in legal action.Outstanding money could result from outstanding tuition fees, access tolearning fund (ALF) loan and library debt (this list is not exhaustive).12

EQUIVALENT OR LOWER QUALIFICATIONSIf you are a UK or EU student thinking about studying for a second degreeor a qualification equivalent to or lower than your current higher educationqualification we will regrettably have to charge you higher fees (the same asmost Universities and other Higher Education Institutions). This is becausethe government is no longer providing funding for students with equivalentlevel qualifications (ELQ). Financial support for the course may also beaffected by your current qualification, so we would advise you to speak withthe HE Admissions & Administration Office or Student Finance England forfurther information about available funding.EXEMPTIONSStudents applying to the University Centre Grimsby to courses leading toqualifications in the following areas are exempt from this withdrawal ofGovernment funding.• Foundation Degrees.• Postgraduate Certificate in Education.• Initial Teacher Training (ITT).This list is not exhaustive and may be subject to change.If you are in receipt of a Disabed Studentsʼ Allowance (DSA) because youhave a disability or specific learning difficulty then you will be exempt fromthe ELQ policy and you will be treated the same as other undergraduatestudents.19 year old Phoebe haschosen to study Media awayfrom home. Her parentsincome is £24,850 per year."I'm entitled to £3,250Non-repayable Grant and a£3,875 Repayable loan per yearfor my living expenses."13

STUDENT BUDGET PLANNERAt Home Away• INCOME (MONTHLY)LIVING COST LOANLIVING COST GRANTPARENTS LEARNING ALLOWANCEADULT DEPENDANTS GRANTCHILD CARE GRANTDISABLED STUDENTS ALLOWANCEINCOME FROM PART TIME WORKPARTNERS INCOMEPARENTAL CONTRIBUTIONCOUNCIL TAX FULL TIME STUDENT DISCOUNTCAREER DEVELOPMENT LOANANY OTHER INCOMETOTALTuition feesstudying at UCG -£5,950 per yearTuition feesstudying awayfrom home -£..... per yearEXPENDITURE (MONTHLY)RENT (HALLS OR PRIVATE)MORTGAGE (INCLUDING ENDOWMENT)FOOD + HOUSEHOLD GOODSCOUNCIL TAXWATER RATESELECTRICITYGASINSURANCETV LICENSETELEPHONE BILLSTRAVELCLOTHINGCHILDCAREIT EQUIPMENT AND INTERNETBOOKS/MATERIALSFIELD TRIPSDEBTS/ARREARS/CREDIT CARDSLEISURETOTALWe will be happy to answer any questions you may have - please contactthe HE Admissions and Administration Office on: 0800 328 3631University Centre Grimsby, Nuns Corner, North East Lincolnshire, DN34 5BQwww.grimsby.ac.uk14

NOTES• No need to worry aboutfinding money for fees, thetuition fee loan will coverthis!• Could get a maximum of£7,125 in loans and grantsstudying away.• OR £6,000 living withparents (Lodge free : ) )15

NOTESCHECK OUT!!!www.direct.gov.uk/studentfinancecalculator16