New campaign to help hard working parents prepare their children for University
08 April 2008
A new campaign to help hard working parents get their kids ready for university
this autumn is being launched today by Higher Education Minister Bill Rammell.
The Government is providing more financial help than ever before to assist
young people from lower and middle income families to aim for university. More
and more parents appreciate the opportunities that a degree can bring to their
children and that's why the campaign aims to let them know about the
additional help on offer.
From September this year, one third of all eligible students in England entering
higher education are expected to be entitled to a full non-repayable maintenance
grant worth £2,835 and another one third are expected to be entitled
to a partial grant.
Minister for Higher Education Bill Rammell said:
"I'm committed to unlocking the talents of everyone in our society. Talent and hard work, not your background, should determine their success.
"We want the best for all our children. That's why so many hard-working parents encourage their children to go to university. In fact, recent research suggests that 91% of parents and grandparents want their children to go to university."Parents know that a university degree is worth well over £100,000 (after tax at today's prices) more than stopping at A-Levels. But although it's the right thing to do, it can be tough. That's why the Government is providing more help than ever before.
"Nobody should be deterred from entering higher education or realising their potential because of a fear of financial difficulty. The Government is introducing a package of additional financial help to achieve this ambition including greater access to non-repayable maintenance grants. Two thirds of students will now be eligible for grants. We want to support hard-working families that support their children."
From 2006, undergraduates starting their degree courses have not had to pay tuition fees before beginning their studies and are only required to start repaying their fee loan once they have left university and are earning over £15,000 per year. This means that someone on the average graduate starting salary of £18,000 repays £5.19 per week.
Students entering university this year will get a further helping hand once they finish their studies and consider buying a house or starting a family. All students starting a higher education course in 2008/09 or later, taking out their first student loan and having a repayment start date of April 2012 or later will be entitled to a repayment holiday of up to five years, provided they remain in their course until April 2011 and enter into repayment for the first time in April 2012.
Notes to Editors
Full time students
Non-repayable help:
- Maintenance Grant - Income assessed and non-repayable. In 2008 worth up to £2,835.
New students in 2008/09 Income Grant Income under £25,000 Full Grant Income between £25,001 and £60,005 Partial Grant Income in excess of £60,005 No Grant Existing students in 2008/09 (existing students do not qualify for the new thresholds) Income Grant Income under £18,3600 Full Grant Income between£18,361 and £39,30 Partial Grant Income in excess of £39,305 No Grant - Non-repayable Bursaries - Minimum £310 if student is paying full Tuition
Fees of £3,145 and getting full Maintenance Grant of £2,835.
Most institutions are offering more, and not just to these students. In 2007/08 the typical bursary for a student receiving the full Maintenance Grant on a course charging the full £3,070 tuition fee was £1,000. - Other non-repayable help
- Disabled Students' Allowances (DSAs) for students with a disability,
mental health condition or specific learning difficulty. This help is not means
tested and does not have to be repaid.
Requirement Allowance Non-medical personal helper (amount each year) Up to £20,000 Major items of specialist equipment (amount for the whole course) Up to £5,030 Other disability related expenditure (amount each year) Up to £1,680 - Childcare Grant, Parents' Learning Allowance, and Adult dependants
Grant for students with children or adult dependants. This help is income assessed
and does not have to be repaid.
Description Allowance Childcare Grant
For full time students with dependent children in ‘prescribed' childcareUp to £148.75 a week (1 child) up to £255 a week (2+ children) Parents Learning Allowance
Helps with course related costs for full time students with dependant childrenUp to £1,470 a year Adult Dependants Grant
For students who have another adult dependent on them financiallyUp to £2,575 - The Access to Learning Fund is available from universities and colleges to provide help for students in hardship who may need extra financial support for their course and to stay in higher education. (Note: Payments are usually given as grants, but may be in the form of a repayable loan)
- Disabled Students' Allowances (DSAs) for students with a disability,
mental health condition or specific learning difficulty. This help is not means
tested and does not have to be repaid.
Tuition Fees
In 2008/09 universities and colleges in England can charge tuition fees of up to £3,145 a year. For every student studying in England the Government contributes around £4,000 to the costs of their study.
The help available
Two types of support - repayable Student Loans and non-repayable grants and bursaries
Repayable Student Loans
- Student Loan for Tuition fees Covers the full amount of tuition fees charged up to a maximum of £3,145. Not income assessed, and paid straight to the university or college. Student doesn't have to take out the full amount - can choose less, but then needs to meet difference. This is paid directly to the chosen institution.
- Student Loans for Living Costs (AKA the Student Loan for Maintenance) Covers
the basic living costs and are paid directly to student bank accounts.
Maximum amounts for 2008/09 Situation Maximun ammount Living away from parents home and studying in London Up to £6,475 Living away from parents home and studying outside London Up to £4,625 Living at parents home (in London and outside) Up to £3,580
Around 75% is available to everyone that's eligible, around 25% means tested based on household income (Note: The Student Loan for living costs is reduced by £1,260 if the student is eligible for more than £1,260 of Maintenance Grant. This will reduce the amount borrowed, and will help students manage their borrowing).
- Repaying Student Loans - Repayments linked to earnings, not how much
is owed. Students only start to repay in the April after they have left university
or college. All Student Loans are combined and repayments are at 9% on earnings
above £15,000.
Someone on £18,000 (the average starting salary for a graduate) pays back £5.19 a week.
Repayments collected by HM Revenue and Customs from salary at source. Students can pay back lump sums at any time. - Repayment holiday - Students who enter student loan repayment from April 2012 will be able to take a repayment holiday of up to 5 years in. Any repayment holiday taken will extend the standard '25 year write off period' by the length of the payment break
The Higher Education Student Support Guarantee (HESSG)
All 16 year olds living in England who receive an EMA in academic year 2008/09 will be given a firm guarantee of the minimum level of financial support they will receive if they progress into higher education. This guarantee will provide these young people with certainty about the financial support available should they decide to enter higher education, and enable them to see a clear route into higher education.
Note: Existing EMA students will also get support under the current system and may also get full grant etc.
Part time students
The help available
A Fee Grant of up to £1,180 a year and a Course Grant of up to £255 a year. Both grants are non-repayable. Students who already have a degree cannot usually apply for this help.
Fee Grant
The Fee Grant helps meet the cost of tuition fees. It is income assessed and is also based on the intensity of the course - how long it takes to complete the course compared to a full time course.
| Intensity of course | How much fee grant is available |
|---|---|
| Between 50% to 59% of an equivalent full-time course | Up to £785 a year |
| Between 60% to 74% of an equivalent full-time course | Up to £945 a year |
| 75% or more of an equivalent full-time course | Up to £1,180 a year |
Course Grant
The Course Grant is worth up to £255 a year and helps meet the cost of books, travel and other course expenditure. It is income assessed and is NOT based on the intensity of the course.
Part time students may also be eligible for DSAs (see above)
Tuition Fees
Unlike fees for full time courses part time course fees are unregulated which means that universities and colleges set their own rates. So the fees charges will vary considerably between courses as well as between institutions.
