Higher Education Policy Changes in England - AY 2012/13
Published 29 October 2019
Applies to England
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1. Key changes for 2012/13 New Entrants starting their courses from 1 September 2012
1.1 Tuition Fees Loans
New students whose full-time courses begin on or after 1 September 2012 are subject to the new higher fee amounts and can borrow up to a maximum of £9,000 tuition fee loan to pay their fees. The tuition fee is available to new fulltime students who are attending their course, and for the first time, to new full-time students who are undertaking their course by distance learning.
1.2 Alternative Providers
New students on designated full-time courses starting on or after 1st September 2012 which are wholly provided by an alternative provider can apply for a tuition fee loan of up to £6,000 towards their fees; this may not cover the full amount charged.
1.3 Maintenance Grant
New students domiciled in England who are attending full-time courses starting on or after 1st September 2012 can apply for an increased means-tested maximum Maintenance Grant of £3,250 (£3,354 in 2013/14). The threshold for the maximum grant is £25,000 and the threshold for receipt of the minimum grant of £50 is £42,600 (£42,611 in 2013/14).
1.4 Maintenance Loan
New students domiciled in England who are attending full-time courses starting on or after 1st September 2012 can apply for an increased, partly means-tested maximum Maintenance Loan of £5,500 for students living away from home and studying outside of London; £7,675 for students living away from home and studying in London; and £4,375 for students living at home.
The non means-tested element of the Maintenance Loan for new students starting their courses on or after 1st September 2012 has been adjusted from 72% to 65% of the maximum loan amount. As a result, the means-tested element of the Maintenance Loan has increased from 28% to 35% of the maximum loan amount. The amount of Maintenance Loan available is reduced by £0.50 for every £1 of Maintenance Grant received.
1.5 Repayments
Students who begin their course on or after 1st September 2012 are subject to a new income threshold for repayment which will be £21,000 from April 2016. They will make repayments at 9% of their income above the threshold. Borrowers would normally be liable to make repayments from the April after they leave their course, but for administrative reasons repayments will not be taken through the tax system until April 2016.
1.6 Interest
Students who begin their course on or after 1 September 2012 will be charged interest at a rate of the Retail Price Index (RPI) + 3% while studying and up until when they become liable to repay. The current rate, which is applied 1 September 2013 - 31 August 2014, is 3.3% + 3 % = 6.3%. Once borrowers are due to repay, interest will be variable (between RPI and RPI + 3%) because it will be income contingent.
For students who began courses before 1 September 2012, interest is set at RPI and is applied 1 September – 31 August. However, the low interest rate cap also applies to this type of loan, which means that the actual rate of interest that will apply is the lower of either of the bank base rate plus 1%, or RPI.
2. Key Changes for students in 2012/13 who started their courses before 1 September 2012
2.1 Tuition Fees and Loans
Students whose full-time courses began before 1 September 2012 are subject to a maximum tuition fee of £3,465 in 2012/13 (this same maximum was retained for 2013/14) and can borrow up to this amount in the form of a Tuition Loan.
2.2 Maintenance Grant
Students domiciled in England who are attending full-time courses starting before 1 September 2012 can apply for an increased means-tested maximum Maintenance Grant of £2,984 (£3,080 in 2013/14). For most students who started their courses on or after 1 September 2008 but before 1 September 2012, the household income threshold for the maximum grant remains at £25,000. For students who started their courses before 2008/09 the threshold for the maximum grant remains at £18,360.
For most students who started their full-time courses in 2009/10, 2010/11 and 2011/12 or in August 2012 the threshold for receipt of the minimum Maintenance Grant of £50 is £50,595 (£50,706 in 2013/14). For most students starting their courses in 2008/09 the threshold for the minimum £50 grant is £61,034 (£61,047 in 2013/14). For students who started their courses in 2007/08 and 2008/09 the threshold for receipt of the minimum grant of £50 is a household income of £39,570 (£39,571 in 2013/14).
2.3 Maintenance Loan
Maintenance Loan maximum amounts, tapers and thresholds for English domiciled students in 2012/13 remain at 2011/12 levels. For most students starting the courses on or after 1 September 2009 but before 2 September 2012, the amount of Maintenance Loan available is reduced by £0.50 for every £1 of Maintenance Grant received. For students starting their courses in 2006/07, 2007/08 and 2008/09, the amount of Maintenance Loan available is reduced by £1 for every £1 of Maintenance Grant received, up to a maximum of £1,329 (£1,370 in 2013/14).
3. Further Information
Further information on student loans policies can be found on the Student Finance England practitioners website.