08 - England - Financial support for students

In England, responsibility for student support lies with the Department for Innovation, Universities and Skills (DIUS).

Following the Higher Education Act 2004, responsibility for student support policy in Wales has passed from the then Department for Education and Skills to the National Assembly for Wales.

In Northern Ireland, the Department for Employment and Learning (DEL) has responsibility for student support and postgraduate awards.

New student support arrangements for full-time undergraduate students have applied in England and Northern Ireland since 2006 and, in Wales, since 2007.

Students from the European Union on eligible full-time undergraduate programmes in England, Wales or Northern Ireland may also take out a tuition fee loan funded by the government of the country of study.

In 2006 the Government announced plans to ensure that student loans  are repaid by borrowers who move abroad after completing their courses. All students have to enter into a contract with the Student Loans Company (SLC) on entering university, which commits them to repaying the loans on completion of their courses. The contract also allows the Student Loans Company to enforce collection of the loans.

Grants

Undergraduate students apply for financial support to their local authorityEducation and Library Board in Northern Ireland, which then carries out an income assessment. Some LAs are involved in a pilot scheme to review the way students apply for loans, tuition fee and grant support. The applications of students in these areas are dealt with entirely by the Student Loans Company (SLC).

The information below applies specifically to students beginning higher education in 2007/08. Different arrangements may apply to students who began their courses in earlier years.

England

Since 2006/07, full-time students beginning higher education have been eligible for a new non-repayable maintenance grant. This is means-tested, that is, targeted at students from households with a lower income. For 2007/08 the maximum maintenance grant is £2,765. If a student receives a high level of maintenance grant, the amount of student loan for maintenance s/he can borrow is reduced.

In addition, higher education institutions charging the maximum tuition fee are expected to pay a bursary of at least £305 to those receiving the maximum maintenance grant.

Wales

Since 2006/07, full-time students beginning higher education have been eligible for the Assembly Learning Grant. This is means-tested, that is targeted at students from households with a lower income. For 2007/08 the maximum grant is £2,765. In addition, higher education institutions in Wales are committed to paying a bursary of at least £305 to those receiving the maximum Assembly Learning Grant. Individual institutions also provide a range of other scholarships and bursaries which vary from one institution to another.

Northern Ireland

Since 2006/07, full-time students beginning higher education have been eligible for a new non-repayable maintenance grant. As in England and Wales, this is means-tested. For 2007/08 the maximum maintenance grant is £3,265. In addition, higher education institutions charging the maximum tuition fee are expected to pay a bursary to students receiving the maximum maintenance grant.

Grants for specific programmes of study

A limited number of 'Dance and Drama' awards are available for students over the age of 16 who wish to follow a course of study in the performing arts. The award pays for the majority of tuition fees and possibly towards some living costs.

Bursaries are offered for education and training in social work by the General Social Care Council (GSCC) for England, the Care Council for Wales (CCW), known in Welsh as Cyngor Gofal Cymru, and the Social Services Inspectorate (SSI) in Northern Ireland.

In addition, undergraduate medical, dental and nursing students are eligible for bursaries and help with tuition fees from the National Health Service (NHS) for all or part of their course.

Grants for part-time students

Different arrangements apply to part-time students. In England, a new package of support for part-time students has been in place from 2005/06. This comprises a ‘fee grant’ and a ‘course grant’. The fee grant applies to students studying the equivalent of 50 per cent or more of a full-time course. The amount of fee grant a student receives is linked to how intensively they are studying their course; the fee grants are organised in three bands depending on this intensity. In addition, the course grant provides students with up to £250 to help meet the cost of books, travel and course expenditure. Students do not have to repay this grant, and the amount they receive is based on income. Students are entitled to this support for a maximum of eight years, depending on course length.

Arrangements in Wales and Northern Ireland are broadly similar to those in England.

 Loans

Student loans were first introduced in 1990 as part of the student support package available to undergraduate students on full-time higher education courses. These loans, known as ‘mortgage-style’, were repayable in fixed amounts.

In September 1998, a new student loan scheme was introduced. Students entering higher education since this date have been able to take out income-contingent loans repayable through the tax system.

Loans are available to full-time students under the age of 55. In autumn 2000, part-time higher education students on low incomes also became entitled to take out student loans.

Student loans are administered by the Student Loans Company (SLC).

Loans for maintenance

In England, the maximum student loans for maintenance (covering living costs) in 2007/08 are:
(LA) in England and Wales, or

• £4,510 for students living away from home outside London
• £6,315 for students living away from home in London
• £3,495 for students living at home.

75 per cent of the maximum loan is available to all eligible students regardless of any other income they have. The remaining 25 per cent depends on the student’s income and that of his/her family.

Arrangements in Wales and Northern Ireland are broadly similar.

Loans for tuition fees

Following the introduction of variable tuition fees, students have been able to take out a ‘student loan for fees’ to cover the full cost of these fees.

The Government’s policy is that loans should be available to students on favourable conditions, which require borrowers to repay, in real terms, broadly the same amount as that borrowed. Thus interest rates are indexed to inflation rates and adjusted each year in line with the Retail Price Index. Students are not required to repay the amount until they have graduated and are earning over £15,000 a year. Payments are made at the rate of nine per cent of income above the £15,000 threshold, collected through the tax system

In England, Wales and Northern Ireland, the student loans scheme is administered within the policy context set by the Government and the legislative framework of the Education (Student Loans) Act 1990, the Education (Student Loans) (Northern Ireland) Order 1990 and the associated regulations (for mortgage-style loans), the Teaching and Higher Education Act 1998, the Education (Student Support) (Northern Ireland) Order 1998 and associated regulations (for income-contingent loans), the Higher Education Act 2004 and associated regulations, and the Higher Education (Northern Ireland) Order 2005 and associated regulations.

Career development loans

Students who are not eligible for mandatory awards or other funding to help with the costs of courses may be able to apply for a Career Development Loan (CDL). The Learning and Skills Council (LSC) manages CDLs through a partnership with a number of banks. CDLs are intended to support courses in a wide range of vocational areas and are designed to cover course fees and other costs such as books, materials, childcare and, if the course is full-time, living expenses.

Additional support for students with particular financial needs

In England, additional assistance is available to students who have family members dependent upon them. All such assistance depends on the student’s income and that of his/her dependants:

• The Parents’ Learning Allowance, introduced in 2003/04, helps with course-related costs for students who have dependent children.
• Students with dependent children are also eligible for Child Tax Credit from the Inland Revenue.
• Childcare grant, available for full-time students with dependent children in registered or approved childcare.
• Adult Dependants' grant.

A Special Support Grant has also been introduced for students who may be eligible to receive means-tested benefits such as Income Support and Housing Benefit. This generally applies to lone parents, other student parents if they have a partner who is a student, and students with disabilities. The amount of support, the income assessment arrangements and the payment arrangements are the same as for the maintenance grant. Students eligible to receive a Special Support Grant are not eligible to receive a maintenance grant, but, unlike the maintenance grant, the Special Support Grant doesn’t reduce the amount that can be borrowed through the student loan for maintenance.

Disabled students may be entitled to receive Disabled Students’ Allowance (DSA). The amount received is not dependent on income and is not repayable. Postgraduate students are also eligible for this help.

Awards for postgraduate study and research

The student support system does not provide the same support for students on postgraduate courses as for those on undergraduate (first cycle) courses, except in the case of initial teacher training.

Awards or studentships for postgraduate study are available on a competitive basis for approved courses. Awards are available from the Research Councils and the Department for Employment and Learning (DEL) in Northern Ireland.

There are no subsidised loans for postgraduate study.

Students taking courses leading to a Postgraduate Certificate in Education (PGCE), or other postgraduate courses of initial teacher training leading to the award of Qualified Teacher Status (QTS) or a specified equivalent qualification, are eligible for financial support in the same way as undergraduate students. Other incentives may also be available.

Institutions:

 

Department for Employment and Learning (Northern Ireland) (DEL)
Adelaide House 39/49 Adelaide Street Belfast BT2 8FD Northern Ireland
Tel.:+44 (0)28 9025 7777
Fax:+44 (0)28 9025 7778
Website:  http://www.delni.gov.uk

 

Student Loans Company Ltd.
100 Bothwell Street Glasgow G2 7JD Scotland
Tel.:+44 (0)141 306 2000
Fax:+44 (0)141 226 2005
Website:  http://www.slc.co.uk

 

Learning and Skills Council
Cheylesmore House Quinton Road Coventry CV1 2WT England
Tel.:+44 (0)870 900 6800
Fax:+44 (0)24 7682 3675
E-mail :info@lsc.gov.uk
Website:  http://www.lsc.gov.uk

 

Department for Children, Schools and Families (DCSF)
Sanctuary Buildings Great Smith Street London SW1P 3BT England
Tel.:+44 (0)870 000 2288
E-mail:  info@dcsf.gsi.gov.uk
Website:  http://www.dcsf.gov.uk

 

Care Council for Wales (CCW)
South Gate House, Wood Street, Cardiff. CF10 1EW Wales
Tel.:+44 (0)2920 226 257
Fax:+44 (0)2920 384 764
E-mail:  info@ccwales.org.uk
Website  :http://www.ccwales.org.uk

 

General Social Care Council
Goldings House 2 Hay's Lane London SE1 2HB England
Tel.:+44 (0)20 7397 5100
Fax:+44 (0)20 7397 5101
E-mail:  info@gscc.org.uk
Website:  http://www.gscc.org.uk/Home/

 

Universities and Colleges Admissions Service (UCAS)
Rosehill New Barn Lane Cheltenham Gloucestershire GL52 3LZ England
Tel.:+44 (0) 1242 222444(general enquiries)
E-mail:  enquiries@ucas.ac.uk
Website:  http://www.ucas.ac.uk

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