The Scottish Government

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What support is available for part-time Scottish students in higher education in 2002-03?
updated July '02

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Part-time Scottish students in higher education (up to and including first degrees) may be eligible for support from the Student Awards Agency for Scotland (SAAS). Following recent legislation, distance learning students may also be eligible for assistance.

This leaflet describes the support that may be available.

Contents

INTRODUCTION
ELIGIBILITY
Who is eligible for support from the Scottish Executive?
Income Assessment
APPLYING FOR A STUDENT LOAN
REPAYING THE STUDENT LOAN
DISABLED STUDENTS' ALLOWANCE
What assistance is available?
How do I make a claim?
TUITION FEES
Do I have to pay tuition fees?
FINANCIAL SUPPORT FROM OTHER SOURCES
Benefits
Hardship Funds
Career Development Loans
GRADUATE ENDOWMENT
What is the Graduate Endowment?
Who has to pay the Graduate Endowment?
CONTACTS

INTRODUCTION

The Scottish Executive is committed to widening access to higher education to students of all backgrounds.

Part-time study in higher education is a key part of lifelong learning. While many students are able to support themselves, some find it difficult to meet all their costs. Students studying part-time in higher education with an income up to and including 13,000 (more depending on family circumstances) can borrow 500 a year to help meet study related costs, such as equipment, books, travel, photocopying, paper, etc.

Scottish Ministers have recently amended the Education (Scotland) Act 1980 to extend this support to eligible students on distance learning courses.

This leaflet provides information about the loan that is available, who can apply for it and how. It also gives some details about other types of financial support that may be available to part-time students and distance learning students for academic year 2002-03.

If you are studying full-time we have introduced a scheme to allow eligible students in higher education access to bursary support. For more information, please see our leaflets 'What support is available for young Scottish students in higher education in 2002-03?' and 'What support is available for mature Scottish students in higher education in 2002-03?'. They are available from SAAS, your college or university.

ELIGIBILITY

WHO IS ELIGIBLE FOR LOAN SUPPORT FROM THE SCOTTISH EXECUTIVE?

If you are a Scottish student studying part-time or on a distance learning course in the UK you can apply to SAAS for a loan of 500, for course related costs, in each year of your course. The loan will be income assessed. Courses of higher education (up to and including first degrees) will be eligible for part-time loan support. However, you must be studying at least 50% of a full-time course.

To be eligible to apply for this support you must satisfy all the following criteria:

• be under the age of 50 on the first day of the first academic year of your course; or be aged 50-54 and be able to show that you intend to return to employment after completing the course;
• meet the independent status criteria (see page 5);
• be ordinarily resident in Scotland (see page 5);
• not previously have successfully completed a first degree course or previously defaulted on a student loan;
• be undertaking a part-time or distance learning course consisting of at least 50% of a full-time course, certified as eligible by your college or university (see page 7); and
• be undertaking a loan bearing course.

If you are not sure if you qualify, you should contact SAAS or your institution for further details. (Contact SAAS on 0131 476 8212 or visit the website at www.saas.gov.uk )

WHO IS CLASSIFIED AS 'INDEPENDENT'?

To be classified as 'independent' you must meet at least one of the following conditions:

• have reached the age of 25 before the first day of the academic year for which the loan is being assessed;
• have no parents living;
• have been married by the first day of the academic year for which the loan is being assessed;
• have been self-supporting from earnings or benefits for any three years before 1st August prior to the start of your course for Autumn starters. (For Winter starters, the relevant date is 1st January and for Spring starters, the relevant date is 1st April.)

WHAT DOES 'ORDINARILY RESIDENT' IN SCOTLAND MEAN?

You will not be regarded as being 'ordinarily resident' in Scotland if your main purpose in coming here has been to receive part-time education and that otherwise you would have been living elsewhere.

To meet the residence criteria, you must have been 'ordinarily resident' in the United Kingdom and Islands (Channel Islands and Isle of Man) for the three years immediately before the first day of the first academic year of the course. If you were living outside the UK only because you or your family were temporarily employed abroad, SAAS may treat you as if your ordinary residence in the UK and Islands had not been interrupted.

You must also be 'ordinarily resident' in Scotland on the first day of the first academic year of the course.

If you are not a UK national you must also have been settled in the UK as described in the Immigration Act 1971 on the relevant date.

If you are in any doubt about your residence status you should contact SAAS for advice.

INCOME ASSESSMENT

All student loans are income assessed. This means that your financial and personal circumstances are taken into account before a loan is paid. Your income and your husband or wife's income, if applicable, is taken into account in assessing whether you are eligible for a loan.

You are automatically eligible, if at the date of application, you or your spouse is currently in receipt of income-related Income Support, Disabled Person's Tax Credit, Working Families' Tax Credit, Housing Benefit or Council Tax Benefit (evidence is required).

You will also be eligible if your financial resources for the preceding financial year do not exceed 13,000. However, if your financial resources in the current year are unlikely to, or do not, exceed 13,000, for example due to unemployment or reduced working hours, then you can still apply. This figure is increased to 15,000 if you are married.

WHAT ALLOWANCES ARE MADE FOR CHILDREN IN THE FAMILY?

If you are single then your income must not exceed 13,000 plus 2,000 for your eldest child and a further 1,000 for each other child.

If you are married then your income must not exceed 15,000 plus 2,000 for your eldest child and a further 1,000 for each other child.

Your Child Benefit payments will be disregarded in full.

Every part-time/distance learning student who applies for a loan will be required to make a formal declaration of their total income from all sources during the preceding financial year (evidence is required).

AM I ELIGIBLE IF I HAVE PREVIOUSLY STUDIED?

You will not be eligible for a part-time loan if you have previously completed a first degree course. This means that you would be eligible if you have attended and failed to complete a full-time or part-time degree course and if you have previously attended a sub-degree course such as HNC or HND.

WHAT HAPPENS IF I TRANSFER FROM A FULL-TIME TO A PART-TIME COURSE?

You can transfer from a full-time to a part-time course and vice-versa. You would have to apply to SAAS for a loan for the new course and they will notify you of any change to the maximum amount of loan applicable in your case as a result of the transfer.

If you are not sure if you qualify, you should contact SAAS for further details. SAAS is responsible for processing applications from eligible Scottish students.

WHO DECIDES ON COURSE ELIGIBILITY?

Your college, university or distance learning provider will decide whether your part-time or distance learning course constitutes at least 50% of an equivalent or similar full-time course. To be eligible, a part-time or distance learning course must exceed one academic year's duration and not exceed twice the period normally required to complete a full-time course, leading to the same qualification. Distance learning courses, for example, that are provided by the Open University, must add up to 60 points in any year to be eligible. Your college, university, the Open University or your distance learning provider must endorse your application form otherwise it will be returned.

APPLYING FOR A STUDENT LOAN

HOW DO I APPLY FOR A LOAN?

Application forms and guidance notes are available from SAAS. You will also be able to download the application form from the SAAS website at www.saas.gov.uk . Your college, university or distance learning provider must stamp your application form to confirm that your course complies with the eligibility criteria. Once you have completed the application form and sent it to SAAS it will be assessed and electronically forwarded to the Student Loans Company Ltd (SLC) who will set up your loan account and issue your 500 payment.

You must provide the sort code and account number of your bank or building society account. You must also supply your United Kingdom National Insurance number, your most recent student loan account number (if applicable) and the names and addresses of two contacts. The people named will not be asked to act as guarantors for any loans, but may be asked to provide your current address if the SLC loses touch with you.

HOW SOON WILL I GET MY LOAN?

The earliest loan payment date will depend upon when you apply to SAAS. SAAS will aim to process all fully completed application forms, which are accompanied by the necessary supporting documentation, and issue a letter of award within 28 calendar days of receipt. Final date for applications will be 30th June 2003 for Autumn 2002 starters.

WHEN DO I START REPAYING THE STUDENT LOAN?

You will not be liable to start repaying your loan until the April after you have completed or left your course.

The amount that you will repay will be linked to your income. At present you will not have to repay anything if your income is 10,000 or less. Your loan will be cancelled when you reach 65 or if you die. You can pay off your loan more quickly by making extra repayments, even if you do not earn 10,000 a year. The SLC will tell you how to do this.

At present you will be expected to repay 9% of your annual income over the 10,000 threshold level. This repayment will not be over a fixed period. The level of repayments will rise and fall in line with your income. Examples of repayments are detailed below.

REPAYING THE STUDENT LOAN

HOW DO I REPAY MY LOAN?

SLC will work with the Inland Revenue to collect repayments. They will be deducted at source by your employer and shown on your pay statement. Repayments will be collected from the self-employed through the Inland Revenue self-assessment system. SLC will make alternative arrangements to collect repayments direct from borrowers who are outside the UK tax system.

Interest on the amount owed will be linked with inflation - in line with the Retail Price Index (RPI) - so the value of the loan, when you pay it back, will be broadly the same in real terms as when you borrowed it.

CAN I REPAY MY LOAN EARLY?

You can pay off your loan more quickly by making extra repayments direct to SLC. This can include making payments before your start date or if you earn 10,000 a year or less. The standard deductions will continue to be made through the tax system, as appropriate. SLC will tell you how to do this.

IF YOU HAVE A PROBLEM WITH YOUR LOAN

You must apply for the loan through SAAS. Enquiries about eligibility should be directed to SAAS on 0131 476 8212 or e-mail saas.geu@scotland.gov.uk

SLC administers the payments of loans. SLC is responsible for keeping details of your account, adding interest (inflation-linked), sending you an annual statement and answering questions about your loan. Any correspondence about individual loan accounts should be addressed to SLC, 100 Bothwell Street, Glasgow or Freephone 0800 405010.

DISABLED STUDENTS' ALLOWANCE

DISABLED STUDENTS

If you are a distance learning student or studying part-time and the course is equivalent to at least 50% of a full-time course, you may also be eligible for the Disabled Students' Allowance (DSA) which is not income assessed. You must also be resident in Scotland as detailed on page 5. If in order to attend/ undertake your course you need a major item of specialist equipment, non-medical personal help or certain other course related costs as a result of your disability you may claim this extra help. These additional costs may, for example, be due to physical disabilities, mental health problems, sensory impairments, specific learning difficulties or medical conditions such as diabetes.

DSA is not intended to assist you with disability related expenditure which you would incur whether you were studying or not, e.g. the DSA payment must arise from your attendance on or undertaking the course as well as from your disability. DSA does not cover the cost of support, counselling or tutorial services which the institution makes available to all students, nor is it intended to meet the costs of extra academic tuition or support in your subject area. Support from DSA would also not be given for any service that can reasonably be expected to be provided by your institution or by some other Agency e.g. the Department for Work and Pensions (DWP - formerly DSS).

WHAT ASSISTANCE IS AVAILABLE THROUGH DSA?

There are three allowances that comprise the DSA, all of which are subject to maximum amounts:

• The Basic Allowance;
• Special Equipment Allowance;
• Non-Medical Personal Help.

The Basic Allowance

This is an annual allowance that you may claim towards general expenditure such as tapes, Braille paper, radio aids, medically certified special dietary needs and small items of equipment.

Special Equipment Allowance

This is an allowance for the purchase of major items of equipment e.g. a word processor or a portable loop. The maximum amount available is set at the time of your initial claim and the sum available is for the duration of your course, not each year of the course.

Non-Medical Personal Help

This is an annual allowance for non-medical personal help e.g. readers for the blind, note takers, etc.

HOW CAN I MAKE A CLAIM FOR DSA?

You must complete a separate DSA application form (form DSA (D/O)) each year in order to claim your DSA payment. This application form needs to be completed by both you and an authorised person at the institution or, if you are a distance learner, by another authorised person. (Contact SAAS for details.) The form requests details of your disability and the additional expenses you incurred.

You will have to provide a recent disability assessment from a qualified person e.g. your doctor or Educational Psychologist. If you are claiming the Special Equipment Allowance, the assessment must specify your equipment needs and costs. Where it does not or where SAAS are not satisfied with the initial assessment, SAAS may refer you to a member centre of the National Federation of Access Centres for an additional assessment before fully considering your request for the equipment. SAAS will pay the cost of the assessment regardless of outcome. These funds will not come out of the Basic Allowance, but will be paid directly by SAAS. DSA cannot be used to establish whether or not you have a disability.

Contact SAAS for further advice. Application forms are available from your college, university, the Open University, distance learning provider or SAAS. You will also be able to download the application form from the SAAS website at www.saas.gov.uk

TUITION FEES

DO I HAVE TO PAY TUITION FEES?

Most students studying part-time and on distance learning courses will have to pay tuition fees.

However, a 'fee waiver' scheme can provide you with fee support if you are a less well-off part-time degree student studying at a Higher Education Institution (HEI). The scheme, which is a pilot, may apply to you if you are a part-time student who is either unemployed or on a low income and who is studying for a first degree at an HEI. The scheme has been extended to include similar students studying HNCs and HNDs at universities or colleges in Scotland.

For more information and eligibility details please contact your institution.

The Open University will advise you on the tuition fee assistance available for its distance learning courses. Please contact:

The Open University
Central Enquiry Service
PO Box 200
Milton Keynes
MK7 6YZ
01908 653231
www.open.ac.uk

If you are studying with another distance learning provider you should contact your provider direct for more information.

FINANCIAL SUPPORT FROM OTHER SOURCES

The following types of support are not paid to you by SAAS and therefore you will need to apply separately:

BENEFITS

The Benefits Agency assesses your entitlement to income related benefits. If you are currently eligible for certain income related benefits you may still be entitled to them when you become a part-time/distance learning student. It is important to discuss this with your college, university, Open University or distance learning provider student advisor as well as your local Benefits Agency.

Generally, the Benefits Agency will disregard payments you receive that are for a specific purpose. As your loan is for study related costs, such as equipment, travel, books, photocopying, paper, etc., your benefits should not be affected. Any payments you receive from Hardship Funds will not be taken into account unless the payment is towards general living costs.

You can find more details about your benefit entitlements from your local Benefits Agency, your college, university, the Open University, your distance learning provider or the National Union of Students.

HARDSHIP FUNDS

If you are experiencing particular financial difficulty, you can apply for assistance from your institution's Hardship Funds. These used to be known as Access Funds.

The Scottish Executive provides these funds, but individual colleges and universities administer them. They are specifically targeted to help you if you have financial difficulties that might prevent you gaining access to further or higher education, or continuing your course.

Colleges and universities have discretion to provide payments to you if you are moving from the benefit system to take a course.

If you are either a part-time or full-time student, you are eligible to apply for help from Hardship Funds. These funds are not available if you are an Open University or other distance learning student.

CAREER DEVELOPMENT LOANS

If you cannot get assistance from SAAS, or any other funding to help pay for the course you want to do, you may be able to apply for a Career Development Loan (CDL). CDLs are managed in partnership with a number of High Street banks and can support a wide range of vocational courses. (For more information on CDLs contact 0800 585 505.)

A CDL can support any type of full-time, part-time or distance learning course as long as it:

• is related to a job (not necessarily to a current job);
• lasts no more than two years plus up to one year's practical experience that is part of the course, where relevant; and
• is not supported financially by a student award at a publicly funded higher education institution.

You can borrow from 300 to 8,000 and use the loan to cover up to 80% of your course fees plus all your related expenses - including books, childcare, travel expenses and any costs associated with disability.

If you have not worked for three months or longer immediately before you apply for a CDL (whether or not you were registered for work or you were a full-time student), you may be able to apply for a loan to cover the full cost of course fees. Your Local Enterprise Company (LEC) must endorse your application. LECs can be found in the local telephone book or you can get details about them from your nearest Job Centre.

You will not have to make any repayments while you are training and for up to one month afterwards (or up to six months if you are unemployed when repayments are due to start). During this time the Government will pay the interest on the loan for you. At the end of this period you become responsible for the loan repayments and any further interest.

GRADUATE ENDOWMENT

WHAT IS THE GRADUATE ENDOWMENT?

The Graduate Endowment is a fixed amount that some graduates on full-time courses will be liable to pay, after they have completed their degree. The Graduate Endowment is provided for by the Education (Graduate Endowment and Student Support) (Scotland) Act 2001. The funds raised from the Graduate Endowment will be used to provide student support, including bursaries, for future generations of students.

WILL I HAVE TO PAY THE GRADUATE ENDOWMENT?

No. Part-time and distance learning students are exempt from paying the Graduate Endowment when they graduate. Other exemptions include:

• HNC/HND students;
• mature students;
• disabled students who receive Disabled Students' Allowance;
• lone parents who receive Lone Parents' Grant;
• students taking a degree course in nursing or midwifery or any degree course that attracts an income assessed Health Department bursary in each year.

WHO HAS TO PAY THE GRADUATE ENDOWMENT?

The Graduate Endowment will only apply to you if you are a Scottish student or an EU student entering a full-time degree course at a publicly funded Scottish institution for the first time in or after session 2001-02.

WHAT HAPPENS IF I TRANSFER FROM A PART-TIME TO A FULL-TIME COURSE?

If you are a part-time or distance learning student you will be exempt from the Graduate Endowment whilst you remain on a part-time course. If you transfer to a full-time course you may become liable to pay the Graduate Endowment. For more information, please see our leaflets 'What support is available for young Scottish students in higher education in 2002-03?' and 'What support is available for mature Scottish students in higher education in 2002-03?'. They are available from SAAS, your college or university.

As a graduate, you will only be liable to pay the endowment at the end of your full-time degree course if you are awarded a degree or have satisfied the requirements for an award.

USEFUL ADDRESSES

Student Awards Agency for Scotland
Gyleview House
3 Redheughs Rigg
EDINBURGH EH12 9HH
0131 476 8212

The Scottish Executive
Student Support Policy Team
Europa Building
450 Argyle Street
GLASGOW G2 8LG
0141 242 0185

The Student Loans Company Ltd
100 Bothwell Street
GLASGOW G2 7JD
Freephone 0800 405010

The Open University Central Enquiry Service
PO Box 200
MILTON KEYNES
MK7 6YZ
01908 653231

Career Development Loan Information Line
0800 585 505
www.lifelonglearning.dfes.gov.uk

Learndirect Scotland

If you want to get into learning but are not sure where to start, contact learndirect Scotland on their Freephone helpline number 0808 100 9000. One of their advisers can help you choose from thousands of learning opportunities, offered by learning centres, colleges and universities in Scotland. Alternatively browse around for ideas on their website at www.learndirectscotland.com or write to: SUFI, Ground Floor, 450 Argyle Street, GLASGOW G2 8LG

The information in this leaflet is also available on the Executive's websites www.scotland.gov.uk/studentsupport or www.fundingforlearners.co.uk

Please e-mail any comments or questions you have via the website's e-mail address studentsupport@scotland.gov.uk

Information on part-time support, including applications, is also available on the SAAS website at www.saas.gov.uk or e-mail saas.geu@scotland.gov.uk