Student finance update:Written statement - HCWS145

WS
Department for Education
Made on: 09 October 2017
Made by: Joseph Johnson (Minister of State for Universities, Science, Research and Innovation)
Commons

Student finance update

I am today confirming the earnings threshold above which individuals are required to make contributions to the cost of their education from April 2018. I am also confirming the maximum tuition fees for the 2018/19 academic year.

Earnings threshold

The earnings threshold will be increased from 6th April 2018. From its current level of £21,000 the threshold will rise to £25,000 for the 2018-19 financial year. Thereafter it will be adjusted annually in line with average earnings.

The new threshold will apply to those who have already taken out and will take out loans for tuition and living costs for full time and part time undergraduate courses in the post-2012 system and those who took out or will take an advanced learner loan for a further education course.

The lower threshold for variable interest rates for post-2012 student loans will also rise to £25,000 on 6th April 2018, and the upper threshold will rise to £45,000 from £41,000 on the same date. Both the repayment and variable interest thresholds will be adjusted annually in line with average earnings thereafter. In 2018-19 around 600,000 borrowers will benefit from the threshold changes. Most of those 600,000 borrowers will both make lower contributions and have a lower rate of interest applied.

The repayment thresholds applicable to pre-2012 student loans, the older mortgage style loans and master’s loans are not affected by these changes.

Tuition fees

Maximum tuition fee caps will be maintained at 2017/18 academic year levels in the 2018/19 academic year.

For HEFCE funded providers that have a current Teaching Excellence Framework (TEF) award and have an access agreement with the Office for Fair Access (OFFA), the maximum tuition fee for full-time courses will remain £9,250 in 2018/19. For HEFCE funded providers that have a current TEF award but do not have an access agreement with OFFA, the maximum tuition fee for full-time courses will be £6,165 in 2018/19. For HEFCE funded providers that do not have a current TEF award, the maximum tuition fee for full-time courses in 2018/19 will remain £9,000 for providers with an OFFA access agreement and £6,000 for providers without an OFFA access agreement.

Maximum fee loans for all new students and eligible continuing students who started their full-time courses at publicly funded providers on or after 1 September 2012 will be maintained at £9,250 in 2018/19 academic year.

For continuing students who started their full-time courses before September 2012, maximum tuition fee and fee loan caps at publicly funded providers in 2018/19 will be maintained at £3,465.

For HEFCE funded providers that have a current TEF award and have an access agreement with OFFA, the maximum tuition fee for part-time courses will be £6,935 in 2018/19. For HEFCE funded providers that have a current TEF award, but do not have an access agreement with OFFA, the maximum tuition fee for part-time courses will be £4,625 in 2018/19. For HEFCE funded providers that do not have a current TEF award, the maximum tuition fee for part-time courses in 2018/19 will be £6,750 for providers with an OFFA access agreement and £4,500 for providers without an OFFA access agreement.

Maximum fee loans for all new students and eligible continuing students who started their part-time courses at publicly funded providers on or after 1 September 2012 will be maintained at £6,935 in 2018/19.

For all new students and eligible continuing students who started their full-time courses on or after 1 September 2012 and are undertaking courses at private providers that have a current TEF award, the maximum fee loan will be £6,165 in 2018/19. For private providers that do not have a current TEF award, the maximum fee loan for full-time courses will be £6,000 in 2018/19.

For all new students and eligible continuing students who started their part-time courses on or after 1 September 2012 and are undertaking courses at private providers that have a current TEF award, the maximum fee loan will be £4,625 in 2018/19. For private providers that do not have a current TEF award, the maximum fee loan for part-time courses in 2018/19 will be £4,500.

The Government will set out further steps on HE student financing in due course.

This statement has also been made in the House of Lords: HLWS146

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