HE Fees Q&A
The government recently announced major changes to
funding in higher education and the fees that colleges and
universities can charge.
The questions and answers below provide guidance on the
changes to higher education (HE) fees for September 2012 and give
Warwickshire College’s position on these changes. For further
information, please contact student services on 01926 318080.
Questions
1. What is the current situation regarding fees for
HE courses?
2. So what are the key changes to fees?
3. What fees will Warwickshire College
charge?
4. Do I have to pay tuition fees up front?
5. When do I have to pay back a Student
Loan?
6. Will Student Loan debt affect my chances of
getting a mortgage?
7. What financial support is available for
full-time students?
8. What financial support is available for
part-time students?
9. It sounds expensive… is higher education worth
it?
10. Is Warwickshire College a good
option?
Answers
As part of the government’s budget cuts, the funding for HE
courses is being reduced by 80%. This means that the costs of study
are being passed on to the students and course tuition fees will
rise from September 2012. This will affect anyone starting a new
course of study in September 2012 but will not affect those
continuing on a course started before that date.
Institutions in England currently charge up to £3,290 per year
as a top-up fee. This does not cover the full cost of delivering a
course and the remaining funds come from central government. For
students starting an HE course from September 2012, institutions
will be allowed to charge up to £9,000 per year. Most universities
are charging £9,000 for some or all courses.
As a community college, Warwickshire College aims to keep higher
education affordable. Full time fees will be from £5,500 to £6,500
while part time fees are lower.
No one will have to pay their fees upfront. Full-time students
will still be able to get tuition fee loans as at present. A key
change is that part-time students can now also get tuition fee
loans and the fee will be paid direct to the instution for you.
You will not have to pay anything back until you are earning
more than £21,000 (raised from the current threshold of
£15,000).
You will only start repaying in the April after you leave higher
education, if you're earning more than £21,000. If for any
reason your income falls below £21,000 your repayments will
automatically be suspended. The repayment process is simple,
payments are normally deducted automatically from your pay through
the tax system.
As a graduate, you will pay 9% of your income above this
threshold and will pay a maximum rate of interest on your loans of
inflation plus 3%. For example, if your salary is £25,000 a year,
you pay nine per cent of £4,000, which is £6.92 a week. Any
outstanding repayments will be written off after 30 years, thereby
protecting graduates with lower lifetime earnings.
Mortgage providers have stated that they will not count Student
Loan debt when considering mortgage applications. This is because a
Student Loan is seen as an investment in your future which is
likely to lead to higher earnings throughout your lifetime.
A student loan will not affect your credit rating.
For full-time students, government support includes:
- Tuition fee loans to pay your full course fees
- Maintenance loans (up to £4,375 or £5,500 depending on whether
you live at home or away from home)
- Maintenance grants (up to £3,250 depending on household
income)
Visit the Student Finance
England website to find out more, including information about
support for disabled students and students with dependants.
In addition, Warwickshire College is part of the National
Scholarship Programme.
If you are from a low-income household (of less than £25k a
year) you may get help through the new £150m National Scholarship
Scheme. Scholarships of £3,000 in value will be made available to
selected eligible students, including care leavers and students
from low income households.
We also provide a generous bursary scheme offering £750 per year
to eligible full time HE students from low income households who do
not receive a scholarship.
If you are a part-time student then you can get a tuition fee
loan to cover your full course fees. Visit the Student Finance
England website to find out more, including information about
support for disabled students.
The benefits of HE are massive. People with HE qualifications
are more likely to be employed and more likely to be promoted. They
will earn around £400,000 more over their lifetime than someone
without an HE qualification.
A recent survey of graduates three and a half years after they
left HE found an impressive 86.9% satisfied with their career to
date.
In other recent surveys, 86% of respondents thought higher
education was worthwhile and 80% of parents who did not go on to HE
wish they had.
One in five students meets and settles down with the love of
their life while studying in HE and people who have studied in HE
have more close friends and stronger social networks than those who
have not.
Warwickshire College has an established reputation for high
quality education while ensuring that its higher education courses
provide excellent value for money.
We work in partnership with highly regarded universities such as
Coventry University, the University of Worcester and Birmingham
City University, and our fees are set below the sector average.
More than 1,000 HE students study with us every year.
A recent Association of Colleges (AoC) survey found that
studying a three year HE course at an FE college, compared with a
university, saves students around £17,500 - even before the
fee rises in September 2012.
A combination of greater opportunities to work part-time while
studying, the ability to live at home and reduced travel costs are
all key factors in minimising student debt.
One student said, “I’m going to end up with the same
qualification as if I’d gone to university but it’s cheaper. I
don’t understand why more people don’t do it.”