02 January 2008

Northwest's young people urged - be the 'First to Go'

John Denham, Secretary of State for Innovation, Universities and Skills, is urging young people from the North West who have no family experience of university - or are not considering higher education - to think again.

The Department for Innovation, Universities and Skills’ (DIUS) First to Go campaign encourages over a third (39 per cent ) of the North West’s 16 and 17 year olds, who may be the first in their family to enter higher education, to think about the benefits of embarking on a degree course.  With the UCAS deadline for autumn 2008 university applications approaching (15 January), the campaign has the backing of the Northwest Regional Development Agency (NWDA) and employers across the UK.

According to the First to Go poll, which was carried out among grandparents, parents and young people, many family members have university ambitions for their children after regretting missing out on the experience themselves. Over a quarter (26 per cent) of parents and grandparents who responded from the North West decided not to go to university in a bid to get a job and start working straightaway.  However, their views on education have now been reversed with the vast majority (95 per cent) of parents and grandparents in the North West wanting their offspring to go to university, showing that higher education is increasingly becoming a key priority.

John Denham, Secretary of State for Innovation, Universities and Skills, said:

“We’re calling on young people from the North West to be the first in their family to go to university.  To help them achieve this we’ve developed a new financial support package, available for students starting university in September 2008, which means that more students that ever before (two thirds of eligible new undergraduates) will be entitled to a non repayable maintenance grant - this means 100,000 extra students a year will benefit from some level of grant support while they are at university. 

“This, in addition to the support available in the form of loans for tuition fees and living costs and the bursaries that universities offer means that nobody should be put off considering higher education for financial reasons.”

Dr Lis Smith, Director of Skills Policy for the NWDA, which is backing the campaign, said:

“Graduates are under-represented in the Northwest workforce. While 26.9 per cent of those active in the labour market are qualified to Level 4, that compares with an England average of 28.3 per cent. It’s vital that we address this gap if we are to continue to allow the Northwest economy to grow. By unlocking the financial barriers to accessing higher education we can seek to address the balance and give the population of the Northwest the opportunities they need to develop in their professional careers. Additionally, it’s also vital that we retain a higher percentage of students who come here to learn, in the region for the long term.”

Nearly two thirds (64 per cent) of those polled across the generations believe the long-term benefit of going to university is the ability to get a better job, while 43 per cent agree that university education gives you a chance to earn more money.  Furthermore, over half of the respondents (53 per cent) feel that studying a subject you enjoy is good reason to enter higher education.

In addition to the tangible benefits, young people are fully aware that family pride is at stake when it comes to a degree – nearly half (49 per cent) of young people in the North West think that a university education would make their family proud of them.  Similarly over a third (36 per cent) of parents and grandparents stated they would feel proud of their children if they entered higher education.

The new student finance package has increased eligibility thresholds for grants, meaning:

- 50,000 more students each year would  receive full grants
- An estimated 100,000 extra students per year will be entitled to non repayable grants (two thirds of eligible students).  
- These changes are in addition to the repayable student loans for tuition fees and living costs

For further information on the new student finance package, and to access a new free DVD featuring four youth celebrities, including cameos from Miquita Oliver (T4), Mark Heap (Green Wing) and comedian Ed Byrne (Mock the Week), and is presented by rising star Nick Grimshaw (E4, Radio 1), log onto www.direct.gov.uk/unimoney.

- ENDS -

Case studies and quotes from supporting partners are available, for more information please contact Claire Lundie or Hew Leith at Consolidated on
020 7781 2300 or at studentfinance@consol.co.uk

NOTES TO EDITORS

Full time students

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 are:
                
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

Non-repayable help:
• Maintenance Grant – Income assessed and non-repayable.  In 2008 worth up to £2,835. 

New students in 2008/09
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 under £18,360 Full Grant
Income between £18,361 and £39,305 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 
o 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.  

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

o 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. 

Childcare Grant
For full time students with dependent children in ‘prescribed’ childcare  Up 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 children Up to £1,470 a year
Adult Dependants Grant
For students who have another adult dependent on them financially Up to £2,575

o 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)
 

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

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.

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)