Increased support for students in higher education
5 July 2007
The Prime Minister and Secretary of State for Innovation, Universities and Skills, John Denham today announced major changes to the system of student support in higher education to ensure that all people with the potential and qualifications, no matter what their background, have the opportunity to participate and succeed in higher education.
Mr Denham announced that the Government would substantially increase the number of students entitled to non repayable maintenance grants from 2008/09. Full-time students from families with incomes of up to £25,000 will be entitled to the maximum grant, compared to the 2006/07 threshold of £17,500. In addition, students from families with incomes of up to £60,000 will also now be entitled to a partial grant - meaning a third of students from 2008/09 onwards will now receive a full grant (worth £2,825 a year) and a further third of students will receive a partial grant.
For example, for a student from a household on £25,000 a year earnings, this will mean an extra £1,100 a year in maintenance grant. For a student from a family on £40,000 a year, it will mean an extra £1,000 a year. In total, two thirds of students will receive some grant each year – compared to just over a half now.
Mr Denham also announced that all those 16 years olds who qualify for an Education Maintenance Allowance will be given a firm guarantee of the amount of financial support they will receive if they choose to go on to participate in higher education. This will ensure potential university students know at an early stage what financial support they can expect, and dispel misconceived fears on the cost of studying at college or university.
The Government will also offer graduates increased choice over how they repay their student loans. Graduates will have the option of taking 'repayment holidays' at a time of their choosing, for up to 5 years in total.
The announcement was also made today that the Government wants to give new emphasis to students acting as role models and mentors for young people who might not otherwise go on to higher education. Therefore the highly successful Student Associate Scheme will be expanded – doubling the number of opportunities by 2010/11. This means that even more high achieving undergraduates will be engaged in schools and colleges, acting as mentors and role models and inspiring young people to fulfil their potential by progressing to university. The scheme focuses on one generation of students supporting the next generation of children towards college or university.
The Prime Minister, Gordon Brown said:
"I want every individual who has the potential and qualifications to succeed in higher education to be given the opportunity to participate, whatever their family background."
"No one should be held back from realising their potential by fears that they will not be able to afford to go to university or that they will graduate with unmanageable levels of debt."
"These changes, giving more financial support to those who want to learn and improve their skills, will help even more young people fulfil their ambitions for a university education."
John Denham said:
"Everyone who has the potential and qualifications to succeed in higher education, whatever their family background should have the opportunity to participate. That is fair, and it is right for our economy. To meet the challenges of achieving world class skills, and to make the most of the talent and ability of every individual we need to be willing to change which is why I have announced that 50,000 more students each year will receive full grants once the system is fully up and running. In addition, eligibility for maintenance grants will also be extended to many more students from families on modest and middle incomes. In total 250,000 students will gain from our proposals once fully implemented."
"Able young people from low income homes should aim for university, confident of the financial support they will receive and I am pleased to announce that all 16 year olds who qualify for EMA will be guaranteed a minimum level of maintenance support at university. The guarantee will support aspirations for higher education. It will provide certainty about the financial support to fulfil their potential and young people starting their studies at sixth form or college will see a clear route into higher education. To ensure that this additional support benefits those who need it most, my right honourable friend the Secretary of State for DCSF and I will introduce measures to ensure that EMAs go to only those that are qualified and demonstrate rigourous compliance with the system."
"In addition, when graduates face significant new outgoings in their lives – such as buying their first home or starting a family – they will now have the option of taking a break from their loan repayments. They will be able to take a break of one year, or two, or longer – for up to five years. This would help graduates make flexible choices over their finances at key points in their lives and careers."
Notes to editors:
- There is no change to the underpinning
student support regime: the changes apply to English-domiciled students only – and will help them wherever in the UK they choose
to study. The Devolved Administrations decide their own student funding systems.
- The
new arrangements come into effect from academic year 2008/09; they apply only to full-time undergraduates
who start university in 2008. Students already in the system continue to have access to the improved package of support introduced
in 2006
- The minimum
threshold (of family
income) for a full maintenance grant (£2,700 in 2006/07 increasing to £2,825 in 2008/09) will be extended
from the current £17,500 per annum to £25,000 per annum. This will mean that one
third of all students in England entering higher education in the academic year
2008/09 will receive a full non-repayable grant; and another one-third will receive a partial grant. Once the system is fully up and running, we estimate that 50,000 more students each year will receive
full grants.
- Students whose
families have household incomes
of up to £60,000 a year will in future benefit from eligibility for a grant. More than 100,000 extra students each year will be entitled to a partial grant once these proposals
are fully implemented.
- For
a student from a household on
£25,000 a yearnings, this will mean an extra £1,100 a year in maintenance grant. For a student from a family on £40,000 a year, it will mean an extra £1,000 a year.
- The
pledge to students paying full fees of £3,145 pa (in 2008/09) and receiving the full £2,825 maintenance
grant continues: they will remain eligible for a bursary of at least £310 from their institution. More students will be eligible for this guarantee, but most universities are already offering more generous
bursaries that this. The amount of institutional bursaries remains a matter for individual institutions.
- We
are expanding the Student Associate Scheme. This involves high achieving students already at university mentoring in schools. The mentors spend 15 days a year in the classroom in return for a daily allowance.
We propose to double the number of places on the scheme from 7,500 to 15,000 by 2010/11. The aim is to inspire young people, particularly those with no family history of going on to higher education, to raise their sights and to look on higher education as a real option for them. - Case
studies (PDF file 19Kb) for higher education student support reforms.
- Video clip of the Prime Minister and Secretary of State for Innovation, Universities and Skills, John Denham at Newham Sixth Form College.