Applying for Loans

HOW DO YOU APPLY FOR THESE LOANS?

Firstly, you need to register on the student-finance-england site, linked through http://www.direct.gov.uk .

This means, as soon as the forms become available to you, you are notified.

Finance Form PN1

So, about April of the year you expect to enter university, (soon to be much sooner!) you must complete the PN1 finance form. This is available in paper form, or online. Online applications are faster and easier to complete.

Through experience, it is strongly recommended you use the online application – it really is so much easier than the paper version! With the paper version, you receive quite a bulky document, and you have to decide which areas apply to you, and which you do not complete. Online, depending on the answer you give to a question, you go straight to the next section that applies to you.  I have been told by many parents who used the online version for a second child going to uni, that online really is much simpler and quicker than paper.

Obviously, with both versions you still have to supply the evidence required to confirm your financial details, and your identity. (P60, passport, etc.)  These are simply posted to the address given when you have completed your online application. Or, if a passport is being used, simply enter the passport number when asked when completing your application, and this will be checked electronically, no need to send it.  If you complete the paper version, the whole thing has to be posted off – and it could be returned to you for amendment if you have mistakenly completed the wrong section.

UCAS and PN1 Form in 2010

HOT OFF THE PRESS NEWS!  Very soon, for students entering Higher Education in 2010, there will be a link between the UCAS application system (applying to universities).and the PN1 application system (applying for financial assistance), and also the Tax Office. It is assumed you have no objection to this, but if you have, you need to tick the appropriate box to opt out. For example, info gathered will include course choices, income information, and proof of identity. Your parents don’t have to produce details of their income, they will simply provide an estimate, which will be verified by the tax office. If you do not get an offer from your first choice university, you don’t need to worry about contacting the Student Loans company, and you don’t need to provide your passport of birth certificate. It will make the completion of your applications so much easier and quicker. 

Even before starting their application, students are strongly advised to register with directgov student finance. By doing this, students will be sent information relevant to applications immediately it is available.   

Free Money

Yes, free money was indeed mentioned!  Now, this is where the student must take the responsibility of finding out what is out there – and believe me, there is lots of (un-repayable) money available if you look! But no-one is going to shout to you that it is there, for obvious reasons.

See following inserts – ‘Maintenance Grant  and Bursaries, Awards and Scholarships’.

Higher Education Student Finance Package.

Maintenance Grant

• ‘Means tested’ and dependent on household income.
• Intended for living costs.
• Does affect maintenance loan level.  Depending on level of grant award,  student will be eligible for % of maintenance loan.
• Paid in 3 equal instalments.
• Student must apply.
• Students who are eligible for the full £2,906 maintenance grant, and           who are being charged the maximum £3,255 tuition fee rate, can apply to their institution for a minimum bursary of £319 – amounts vary per institution.
• The Maintenance Grant IS NOT REPAYABLE.

Bursaries, Awards & Scholarships – more information.

• Awards are as individual as the institution - £300 - £1500 PER YEAR!
• Most are financial – but not always – PCs, bikes or other equipment.
• Many awards will not be advertised – you will need to be proactive.
• Check institution websites.
• Check bursary websites.
• Pay attention during enrolment week.
• Talk to your FE department before you apply / leave.
• Charities – www.support4learning.org.uk

Remember any money awards made are not repayable!

So here’s what you do.

Firstly, apply for the means-tested Student GRANT. (Grants differ from Loans in that they are not to be paid back. Ever.)

You apply using the same PN1 form as you use to apply for the Loans.

If you qualify for a Student Grant – it DOES  affect your Maintenance Loan level. What you get in Grant, is deducted from your Loan. Still well worth having, so the advice is, if you qualify,  – go for both! Remember, Grants are FREE money, so don’t have to be paid back. However, the Maintenance Loan is not mandatory – if you qualify for a grant, and feel you can live on it and perhaps earnings from a part-time job, without taking out the Maintenance Loan, you do not have to take out the Maintenance Loan. (Some money experts say you would be mad not to, it is the cheapest loan you will ever, ever, get, and can be used for any number of useful purposes.)

Moneysavingexpert.com is a great site for advice on finance stuff – and well worth checking out. It has a section especially for young people and students. It has been suggested that, if you find you can live on your grant and part-time earnings – still get your Loan and invest it in an ISA! It could then make money for you, usually at a greater rate than you will have to pay back once you are earning enough for the repayments to start! Something to think about.

If you qualify for a Maintenance GRANT, (non repayable) you would receive 3 equal payments throughout the year.

IF YOU ARE ALREADY IN RECEIPT OF THE FULL EMA PAYMENT (CURRENTLY £30 PER WEEK) AND HAVE BEEN FOR THE FULL 2 YEARS OF 6TH FORM, YOU ARE GUARANTEED TO BE ELIGIBLE FOR THE STUDENT GRANT!

In addition, this guaranteed grant is assured for 3years after you leave 6th form. So, if you don’t go straight to uni, but change your mind and decide to go, say, 3 years later – YOU ARE STILL ELIGIBLE FOR THIS GUARANTEED GRANT!

IS ANY MORE FREE MONEY AVAILABLE? Yes if you look!

If you qualify for the Maintenance Grant – at however much – then ALL unis MUST offer an additional grant, or a bursary. (A bursary is, again, free money and does not have to be repaid.) The amount of this varies, according to the fees charged. If you are paying the maximum Tuition Fee, (£3225), and you get the maximum grant, you will automatically receive a bursary as long as you don’t opt out of info sharing – anywhere from £300 - £1,500 for 2009

Ring up the unis you fancy, and ask what financial help is available. When you attend Open Days or Conventions, ASK. Many unis have ‘hidden’ help available. For example. Hull university charges the maximum tuition fees allowed, £3,225. However, if you qualify for the Maintenance Grant applied for on the PN1 form, Hull uni will give you (2008 entry) a GRANT (free money!) of £2,835, and a BURSARY (free money) of £1,000!!!!! This is intended to go towards living costs – but again, if you can live on your Maintenance GRANT and part-time earnings – you could possibly use this free money to pay off your Tuition Fee Loan. But again, it has been suggested that you could be much better off using it for other necessary expenses.

ANY MORE? Yes, if you keep looking!

Some courses attract various grants or bursaries (example - maths & English). Do your research. Some companies will subsidise your Fees & Maintenance if you will be working for them after completing your course. Check it out, if you know what you want to do after uni, approach some likely companies and ask if they have a graduate support programme.

Some bursaries are result/grade based – if you are well pleased with your results, shout about it to your favoured unis, see if they can offer you anything. Look at the Aimhigher bursary map online it shows uni bursary offers with A level grades  http://bursarymap.direct.gov.uk/

Some local areas have bursaries and trusts for young people in their parish who are going to uni. (For example, the Nancy Reckitt fund, £300 - £500 available if you live in the Patrington area).

A good piece of advice is, if finance is a very big consideration for you, check out the situation at the universities you favour BEFORE you make your final acceptance after your offers. If one can offer you significantly more than another, for virtually the same course – it might be worth considering when you visit.

AND THERE’S MORE!

Sometimes, unis can offer you (if you ask!) assistance in other ways. Depending on the uni, they may be offering a bicycle, a laptop or other equipment, or monetary awards based on achievement. Check out the uni websites, ring them up, talk to other students. It pays to be proactive, and remember, if you don’t ask, you don’t get!

EXTRA HELP IS AVAILABLE

For students with a disability, mental health conditions or specific learning difficulties, and for students with children or adult dependants, there is extra help available. If you qualify for this extra assistance, again, it is non-repayable!

 Access to Learning funds can provide help for students on low income who need extra financial support. This is administered by individual universities – it is usually a last port of call, but MONEY IS THERE, SO ASK IF YOU QUALIFY!

See insert ‘Extra Help’, and ‘Disabled Student’s Allowance

Extra help

• Access to Learning Funds [ALF] can provide help for students on low income who need extra financial support – administered by individual universities – a last    point of call – but institutions do have a pot of money sitting there to help.
• Extra help is available to students with a disability, mental health conditions, or specific learning difficulties, and for students with children or adult dependents.
• Disabled Students’ Allowance – non repayable funding.
• Students with Children – non repayable funding.
• Adults Dependants’ Grant – non repayable funding.
• Parents’ Learning Allowance – non repayable funding.

There is also a disabled students allowance, which is non-repayable funding, non-repayable funding for students with children, and also for students with Adult Dependants – see the Aim Higher website.

Disabled Students’ Allowance [DSAs]

May be available if you have a disability, mental health condition, or specific learning difficulty.

Remember that the Student Loans Company must be satisfied that your condition will mean that you have to spend more money while on your course.

Applications can be made before or during the course – the student may need to be reassessed.

The following help is available for students studying an eligible full time undergraduate course [including distance learning]

Specialist equipment allowance of up to £5,161 for the whole course

•  Non-medical helper’s allowance of up to £20,520 each year
•  General students’ allowance of up to £1,724 each year
•  Travel allowance to help with the extra travel costs incurred as a result of the disability.

This support is not means tested and is not repayable.

DO YOU QUALIFY FOR HE STUDENT FINANCE?

As might be expected, the rules are complex, hence the complicated paper version of the PN1 form. However, as a general rule, the following must apply:

• You must be a legal resident of the UK, and have been for more than the past 3 years
• Whether you have been in Higher Education before, and have unpaid loans still outstanding
• Your age – help is given up to 60 years of age
• Your course and institution must be eligible. This can be checked on www.direct.gov.uk

Student Support Helpline

Further help or clarification is available on the Student Support Helpline – 0845 602 0583

For assistance when completing your application, call 0845 800 5090. This is charged as a local call, and you are connected to a call centre whose staff are trained to answer all queries in terms of PN1 applications.

How and when is it best to apply

It is best to apply for student finance as soon as possible. April has been the traditional month, but again, this is changing, and the applications are likely to be brought forward significantly. But April of the year you wish to enter university at the very latest.

If you prefer the paper version of the PN1, you can request it online, or by calling.

As previously mentioned, currently you will need to provide corroborative evidence, whichever method you chose for your application.

All on the one form, you can apply for Tuition Fees Loan, Maintenance Loan, Maintenance GRANT and extra help, e.g. disabled student allowance, child care, etc.

NB – on the PN1 form, you will need to tick the opt out box if you do not want to give  your permission to share your application details with the college or university you are applying to. If you hope to be granted any extra Grants or Bursaries, it is ESSENTIAL you give your permission for this information to be shared.

When completing the PN1 form, always answer truthfully. ‘Little white lies’ can get you into serious trouble on a document like this!

And, for the purposes of completing this form, always assume you will be successful at the university that is your first choice. BUT, you must remember, if this changes, and you end up going to a different university for whatever reason, YOU must inform the Student Loan Company, by ringing studentfinanceengland helpline – 0845 800 50 90, so the money can go to the correct uni. If it is a very last minute change of mind, you must to take in your student payment schedule letter to registration at your chosen Uni, and if it is different from your stated choice, your chosen uni will sort out the change of location – payments are generally made into your bank account within 48 hours of registration