Scottish Government

What support is available for young Scottish students in higher education in 2004-05?
updated February '04

INTRODUCTION

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

As well as paying students' tuition fees we introduced the Young Students' Bursary and loan system to help students from low-income families with their living costs who began their course in or after 2001-02.

Graduates will be liable to pay a fixed amount (endowment) at the end of their course in recognition of the benefits that they gain from their degree. For entrants in 2001-02, the endowment will be 2,000, for entrants in 2002-03 it will be 2,030. For students who entered in 2003-04 the amount will be 2,092. For all new liable students in 2004-05 the amount will be increased by the rate of inflation. The funds raised will be used to provide student support, including bursaries, for future generations of disadvantaged students.

You should read this leaflet if you:

• are or were under 25 before the first day of the first academic year of your course; and
• are or were not married by the first day of the first academic year of your course; and
• have not been self-supporting from earnings or benefits for any 3 years before the first day of the first academic year of your course; and
• are taking a full-time course of higher education (an HNC/D or degree).

If you are 25 or over, married or self-supporting at the start of your course, you are described as a 'mature student'. We have also introduced a scheme to allow eligible mature students in higher education access to a discretionary bursary to help meet additional costs such as registered childcare and housing.

For more information, please see our leaflet What support is available for mature Scottish students in higher education in 2004-05? It is available from the Student Awards Agency for Scotland (SAAS), your college or university.

TUITION FEES

DO I HAVE TO PAY TUITION FEES?

The Scottish Executive has abolished tuition fees for all eligible Scottish students studying in Scotland. SAAS will pay the tuition fees for all eligible full-time Scottish and other EU students studying at publicly funded institutions in Scotland. The level of your family income does not matter. This payment will be at the standard rate (1,150 in 2004-05).

You must still apply to SAAS for help with your tuition fees even if you are not applying for any other means of support.

Scottish students studying a full-time higher education course at an institution in England, Wales or Northern Ireland are liable for an income-assessed contribution of up to 1,150 (2004-05 rate) towards the cost of tuition.

The actual amount of contribution required will depend on your own 'unearned' income and your parents' income. Any balance will be paid to the institution by SAAS. Students who want to apply for income-assessed support should contact SAAS. This could include assistance with your tuition fees as well as any other means of support.

WILL I HAVE TO PAY TOP-UP OR VARIABLE TUITION FEES?

The DfES HE Bill proposes to introduce variable tuition fees in England from 2006. This Bill will require to be considered and passed by Parliament before it becomes law. Individual institutions will decide what tuition fees to charge for each course up to the maximum of 3,000. Students starting courses before 2006 will not have to pay top-up fees. You can visit www.fundingforlearners.co.uk for updates about this.

Tuition fees for Scottish students in higher education are paid by the Scottish Executive. Scottish Ministers have pledged not to re-introduce them and not to introduce top-up fees.

ELIGIBILITY

WHO IS ELIGIBLE FOR LOAN AND BURSARY SUPPORT FROM THE SCOTTISH EXECUTIVE?

If you are a young Scottish student studying full-time in the UK you should apply to SAAS for support with your living costs.

You must be:

• ordinarily resident in the UK and Islands for 3 years immediately before the first day of the first academic year of the course
• settled in the UK as described in the Immigration Act 1971
• ordinarily resident in Scotland on the first day of the first academic year of the course
• studying full time in higher education.

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.

More detailed information about the amounts of loan and bursary in 2004-05 are available in the SAAS booklet SAS4. This will be available from your university, college, Career Advisory Service or SAAS from end of March 2004. It will also be available on the SAAS website at www.saas.gov.uk from end of March 2004.

STUDY IN SCOTLAND

SUPPORT FOR SCOTTISH STUDENTS STUDYING IN SCOTLAND

Fees

SAAS will pay the tuition fees for all eligible full-time Scottish and EU students studying at Scottish institutions. The level of your family income does not matter.

Living Costs

Support for living costs for students studying in Scotland will mainly be through a loan, but you will be able to get a bursary if your parents' income is less than 27,900. The support for loans and bursaries is income-assessed, with a possible contribution from your parents.

Supplementary Grants and Travel Expenses

Some students will be entitled to extra help through non-repayable supplementary grants and travel expenses.

Hardship

Another source of financial help may be the Hardship Funds.

Benefits

Some students may also be helped through Social Security benefits, but the vast majority will not be eligible. You may be eligible for the new tax credits if you have children. Contact your local Tax Office or Helpline number 0845 300 3900 for more information.

Others

Students not eligible for the support described in this leaflet may be eligible for Career Development Loans (CDLs).

HOW MUCH CAN NEW STUDENTS GET IN LOANS AND BURSARIES?

Student loans and bursaries are income assessed. This means that your own 'unearned' income and your parents' income is taken into account in assessing the size of loan or bursary available. The bursary can be up to 2,150.

Students from families on incomes of 16,110 or less a year will be entitled to a maximum support of 4,625 for each academic session if they are living away from home, or 3,770 if they are living at home.

The amount of loan and bursary decreases as the parental income increases. For example, with parental income of 45,300 or more, students living at home will be entitled to a loan of 530. With parental income of 49,000 or more, students living away from home will be entitled to a minimum loan of 810.

The maximum and minimum support available for 2004 is:

Table A (new and existing students attending Scottish institutions since 2001-02)

Additional loan payments are available for each week you are required to attend your course in excess of 30 weeks and 3 days.

WHAT IS A YOUNG STUDENTS' BURSARY?

It is a non-repayable grant for young students who are studying full-time higher education in Scotland for the first time in or after 2001-02. It is paid instead of part of your loan, so it reduces the amount of loan you need to take out. It will be available whether you live with your parents or away from home during term time.

The maximum bursary of 2,150 a year will be paid to you if your family income is under 10,740 a year. The amount of bursary will taper down to 1,445 a year if your family income is 15,000, 878 on income of 20,000 and then down to zero if your family income is around 27,900 a year.

Support for students from families with income over 27,900 a year will be entirely through a student loan and parental contribution. Better-off parents are expected to contribute more to support their children and the amount of loan reduces as family income increases.

The table opposite shows the approximate amounts for various income groups for 2004-05, based on the living away from home rate.

* figures show 'residual' income, which is gross income less certain allowances
parental support at this level may also affect entitlement to other allowances such as travelling expenses.

WHAT SUPPORT CAN I GET IF I STARTED STUDYING BEFORE AUGUST 2001?

If you are on a continuing course of study that started before August 2001 you will still be eligible for the support arrangements that you were entitled to at the start of your course.

Table B (existing students attending Scottish institutions on courses started before 2001-02)

Additional loan payments are available for each week you are required to attend your course in excess of 30 weeks and 3 days.

You will not be eligible for a Young Student's Bursary but will still be eligible for other sources of financial help, such as Hardship Funds. You will not be liable to pay the Graduate Endowment either.

STUDYING IN THE UK OUTWITH SCOTLAND

SUPPORT FOR SCOTTISH STUDENTS STUDYING IN ENGLAND, WALES OR NORTHERN IRELAND

Scottish students studying a full-time higher education course at an institution in England, Wales or Northern Ireland are liable for an income assessed contribution of up to 1,150 per year (2004-05 rate) towards the cost of tuition. The actual amount of contribution required will depend on your parents' income. Any balance will be paid to the institution by SAAS.

WHAT SUPPORT IS AVAILABLE?

Support for living costs will mainly be through a loan, which is income assessed, with a possible contribution from your parents. This means that the amount of loan will depend on your own 'unearned' income and your parents' income. Some students will be entitled to travel expenses and extra help through non-repayable supplementary grants.

Students who want to apply for means-tested support with fees or a loan should contact SAAS.

If you are on a continuing course of study that started before August 2002 you will still be eligible for the support arrangements that you were entitled to at the start of your course.

Table C (existing students attending UK institutions outwith Scotland on courses started before 2002-03)

Additional loan payments are available for each week you are required to attend your course in excess of 30 weeks and 3 days.

AM I ELIGIBLE FOR A YOUNG STUDENTS' BURSARY?

You will not be eligible to claim the Young Students' Bursary if you study at an institution anywhere else in the UK. But other forms of support for living costs, including loans, will still be available. You may, however, be entitled to a Young Students' Outside Scotland Bursary depending on your family income (see below).

You may be eligible for Hardship Funds. Some students may also be helped through Social Security benefits, but the vast majority will not be eligible.

Students not eligible for the support described in this leaflet may be eligible for Career Development Loans (CDLs).

WHAT IS A YOUNG STUDENTS' OUTSIDE SCOTLAND BURSARY?

It is a non-repayable grant for young students who are studying higher education full-time elsewhere in the UK for the first time in or after 2002-03. The bursary payment is additional to your loan entitlement. You will not be eligible for this bursary if you started your course of study before 2002-03.

HOW MUCH IS THE BURSARY AND LOAN?

You will get a full bursary of 530 a year if your parents' income is less than 16,110. Thereafter, the bursary will taper to 50 with family income of 19,250. Support for students from families with income over 19,250 a year will be entirely through a student loan and parental contribution.

WHAT SUPPORT AM I ELIGIBLE FOR?

If your parents' income is less than 21,475, they will not be asked to contribute. Above 21,475, parents will contribute towards your tuition fees and, if applicable, your support. The system has two different stepped rates which means that parents at the upper income levels will contribute more than those who are less well off.

All students will be entitled to a minimum loan no matter how high their parents' income is. Students living away from home will be entitled to a minimum of 1,960 a year. Students living in London will be entitled to a minimum of 2,115 a year.

Table D (new and existing students attending UK institutions outwith Scotland since 2002-03)

Additional loan payments are available for each week you are required to attend your course in excess of 30 weeks and 3 days.

ALL SCOTTISH STUDENTS

SUPPLEMENTARY GRANTS

Non-repayable supplementary grants are also available for those students who have additional financial needs, such as students who have dependants or who have a disability. These grants are available to eligible Scottish students studying in the UK. All supplementary grants are income assessed except Disabled Students' Allowance). You should claim supplementary grants when you are completing your SAAS application form.

STUDENTS WITH DEPENDANTS

You may be eligible for:

• Dependants' Grant of up to 2,335 if you have responsibility for a dependent adult;
• Lone Parent's Grant of 1,150 if you are a lone parent student; and
• Lone Parent's Childcare Grant of up to 1,075 if you need extra help with your formal childcare costs.

STUDENTS LEAVING CARE

A grant is available to help students who were previously in care with accommodation costs in the long vacation. You may be eligible for this grant if you were in care immediately before you started your course, or you were in care when you finished your compulsory schooling.

You should notify SAAS when you complete your application form if you think you may be entitled to this assistance.

TRAVEL EXPENSES

You may claim travelling expenses if you have travel costs that are necessary in connection with your course. If you are living away from home, you may claim three return journeys each session to and from your term-time residence, in addition to term-time travel to and from your institution. There is a maximum amount payable to eligible students.

SAAS will only allow the most economical fares available for the type of transport you use. If the cheapest fares are offered under the Student Railcard or Bus Pass Schemes, claims will be reimbursed at the cheapest rate plus the cost of the Student Railcard or Bus Pass.

How to claim

Travelling expense claim forms (Form AB4) are supplied to institutions in December each year and can be downloaded from the SAAS website. Completed forms should be sent to SAAS as soon as possible after the end of the first term.

Travelling expenses are normally paid directly into your bank account within 28 days of the completed form being received by SAAS, but special arrangements can be made to pay them earlier if you are in particular hardship. Please contact SAAS for further details.

DISABLED STUDENTS' ALLOWANCES

STUDENTS WITH DISABILITIES

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 be able to claim Disabled Students' Allowance (DSA). 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, for example, 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, for example, the Department for Work and Pensions (DWP).

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 of up to 1,525 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 of up to 4,565 for the purchase of major items of equipment, for example, 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 your course.

Non-medical Personal Help

This is an annual allowance of up to 11,550 for non-medical personal help, for example, 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 (F/T)) 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. 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, for example, 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. Regardless of the outcome, SAAS will pay the cost of the assessment. 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.

DSA is not income-assessed, but you must be resident in Scotland as detailed on page 5. Contact SAAS for further advice.

Application forms are available on the SAAS website as well as from your college, university or SAAS.

DEGREES IN ALLIED HEALTH PROFESSIONS (AHPs)

Students on degree courses in AHPs will have different funding arrangements consisting of Scottish Executive Health Department Bursary and loan. If you think you may be one of these students you should contact SAAS for more details.

The relevant courses are:

Dentistry and medicine

Students on degree courses in dentistry and medicine are entitled to the same student support package as most other students in years 1 to 4. In years 5 and later, they are entitled to the Health Department Bursary. Their support will then become loan and bursary. For more detailed information on the funding available from year 5, please contact SAAS.

WHAT IS AN INCOME ASSESSMENT?

All support for living costs for higher education students, except Disabled Students' Allowance, is income assessed. This means that your financial and personal circumstances are taken into account before a decision is made about what support you will receive. Your parents' income is a factor in the assessment, and so is your own 'unearned income' but your 'earned income' is not. Students who marry during their course will still be classed as a young student, however, the income assessment will be based on their spouse's income and not their parents'.

PARENTAL CONTRIBUTION

Under the current arrangements, a parental contribution is assessed against the income of both natural parents if they ordinarily live together as a married couple. If they do not live together, it is assessed on the income of the parent with whom the student lives. Step-parents are not asked to contribute unless they have legally adopted the student.

The income that is assessed is defined as 'residual income' i.e. gross income after various allowances have been taken into account. This takes account of dependants and certain premiums that qualify for tax relief, as well as certain allowances that are disregarded for Income Tax purposes.

WHEN SHOULD I EXPECT A PARENTAL CONTRIBUTION?

Your parents are asked to declare their financial resources. They will be expected to contribute to your living costs depending on the balance of their income after certain allowances have been deducted (their 'residual income').

If the residual income is less than 21,475, they will not be asked to contribute. Above 21,475 the system has two different stepped rates (1 in 9 and 1 in 6.50). This means that parents at the upper income levels will contribute more than those who are less well off.

All students will be entitled to a minimum loan no matter how high their parents' income is. Students living with their parents will be entitled to a minimum of 530 a year. Students living away from home will be entitled to a minimum of 810 a year.

WHAT IF THERE ARE OTHER CHILDREN IN THE FAMILY?

If there are other dependent children in the family, the assessed contribution will be reduced by 165 for each child (excluding the student).

WILL MY STUDENT SUPPORT BE REDUCED IF I HAVE ANY INCOME?

Every student who applies for assistance is required to make a formal declaration of his or her total income from all sources during the academic year:

• income earned by working during the year will not affect your student support. It does not matter how much you earn, or whether you work during term-time or the vacations
• unearned income in excess of specified limits will reduce your entitlement on a for basis.

HOW DO I APPLY FOR SUPPORT?

Application forms and the booklet SAS4 are available from your college, university or SAAS, or can be downloaded from the SAAS website.

Once you have completed the application form and sent it to SAAS, your entitlement to a bursary and loan will be assessed and electronically forwarded to the Student Loans Company (SLC), who will issue your loan payment. If you are entitled to a bursary, it will be paid by SAAS.

You must provide:

• the sort code and account number of your bank or building society account
• your UK National Insurance number
• your most recent student loan account number (if applicable)
• the names and addresses of two contacts.

The people named will not be asked to act as guarantors for any loans, but they may be asked to provide your current address if the SLC loses touch with you.

HOW SOON WILL I GET MY PAYMENT?

For most students, the first instalment of your loan will be paid by direct transfer into your bank account. After that, for all students, it will be paid directly into your bank account.

The earliest loan, bursary and supplementary grants payment date will be the first day of your course, but this will depend on when you apply to SAAS. All payments will then be paid each term by direct transfer into your bank account.

SAAS will aim to process all fully completed application forms that are accompanied by the necessary supporting documentation, and issue a letter of award, within 28 calendar days of receipt.

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.

HARDSHIP FUNDS

Students who are experiencing particular financial difficulty can apply for assistance from their institution's Hardship Funds. Hardship Loans have been abolished from 2004-05.

The Scottish Executive provides these funds, but individual colleges and universities administer them. They are specifically targeted to help students who have financial difficulties that might prevent them gaining access to further or higher education, or continuing their course. Colleges and universities have discretion to provide payments from the Hardship Funds to students who are moving from the benefit system to take a course.

You must have taken out your full loan entitlement before you can receive this help.

RETURNING TO STUDY AFTER ILLNESS OR CARING

Students who are absent from their studies because of illness or caring responsibilities can continue to receive support through SAAS. After recovering or ending your caring responsibilities, if you have to wait until the start of the next academic year to re-join your course, you will be entitled to claim Job Seekers Allowance.

BENEFITS

Job Centre Plus assesses students' entitlement to income related benefits. Full-time students are generally not eligible to claim benefits. But full-time students with dependants and students with disabilities may be eligible in certain circumstances. It is important to discuss this with your college or university student advisor as well as your local Job Centre Plus office.

Generally, the Job Centre Plus will disregard payments you receive that are for a specific purpose. And payments you receive from Hardship Funds will not be taken into account unless the payment is towards general living costs.

The first 10 a week of your student loan will not be taken into account. But the amount of loan entitlement over 10 a week will directly reduce your benefit for . This loan entitlement will be taken into account even if you have not taken out a loan. This is because it forms part of the resources available to you.

Any payments in addition to the loan which are intended for everyday living costs will be taken into account when calculating benefits. If you receive such payments then 20 per week of the payment is disregarded, although this amount is reduced to 10 if the 10 student loan disregard is also applicable.

You can find more details about your benefit entitlements from your local Job Centre Plus office, your college or university, or the National Union of Students.

TAX CREDITS

Students and their families could be entitled to more money through tax credits. Child Tax Credit takes the place of Dependants' Grant for dependent children. Students with children are entitled to claim the new Child Tax Credit which, for the first time, will be paid to those who are responsible for at least one child, whether or not they are in paid work. Students who are receiving the maximum amount of Child Tax Credit are entitled to free school meals for their children (please contact your Local Education Authority for more details on how to apply for free school meals).

Students who work more than 16 hours a week could also be eligible for Working Tax Credit, which is designed to make work pay for those on lower incomes. Extra help is also available to those who are disabled or who are caring for disabled children.

How much help you get depends on your circumstances. To find out, visit www.inlandrevenue.gov.uk/taxcredits (the website allows you to check how much you could get, and to claim it on-line there and then) or call the response line on 0800 500 222. For more information about how tax affects students, check www.inlandrevenue.gov.uk/students. You can also drop into your local Inland Revenue Enquiry Centre (listed under Inland Revenue in the telephone directory).

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 2 years plus up to 1 year's practical experience that is part of the course, where relevant
• 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 a disability. If you have been out of work for 3 months or longer at the time of application, you can apply for a CDL to cover 100% of your course fees.

You will not have to make any repayments while you are training and for up to 1 month afterwards (or up to 17 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 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 disadvantaged students.

Some graduates will be exempt from making contributions. Those exempt will include:

• mature students
• disabled students who receive Disabled Students' Allowance
• lone parents who receive Lone Parent's Grant.

Even if you have to pay the Graduate Endowment, you won't have any more debt than under the previous system. In fact, almost all students liable for the Graduate Endowment will have less debt than under the system which has been replaced.

WHO HAS TO PAY THE GRADUATE ENDOWMENT?

The Graduate Endowment will apply to Scottish students entering a full-time degree course at a publicly funded Scottish institution for the first time in or after session 2001-02. The Graduate Endowment will also apply to EU students. Therefore, if you started your course of study prior to 2001 or are studying at an institution elsewhere in the UK, you will not be liable to contribute to the Graduate Endowment.

You will only be liable to pay the Endowment at the end of your degree if you are awarded a degree or have satisfied the requirements for an award.

WHO DOESN'T PAY THE GRADUATE ENDOWMENT?

You will not be liable to pay the Endowment if you:

• are a mature student (i.e. assessed as independent); or
• are a lone parent entitled to a Lone Parent's Grant during your degree; or
• a disabled student eligible for support through the Disabled Students' Allowance scheme during your degree; or
• are undertaking an HNC/D course, or transfer to your degree course directly from an HNC/D started before 2001; or
• take less than 2 years to complete your degree course immediately after completing an HNC/D; or
• take less than 3 years to complete your degree course in all other circumstances; or
• take a degree course in nursing or midwifery or any degree course that attracts a Health Department bursary in each year. The relevant courses are dental hygiene; chiropody; dietetics; orthoptics; radiography; language therapy; nursing; dental therapy; podiatry; occupational therapy; physiotherapy; speech therapy; prosthetics and orthotics; midwifery; or
• fail to meet the requirements to be accredited with a degree; or
• have studied for a degree in publicly-funded higher education before; or
• study for your degree outwith Scotland; or
• study part time.

We expect around 50% of graduates to be exempt. Contact SAAS for further guidance.

HOW MUCH WILL THE GRADUATE ENDOWMENT BE?

When you enter higher education you will know exactly how much your Graduate Endowment payment will be when you reach the end of your studies.

The amount of Graduate Endowment payable by students who enter a degree in academic year 2001-02 will be 2,000, for those students who entered their degree course in 2002-03, it will be 2,030. For students who entered in 2003-04 the amount will be 2,092. For all new liable students in 2004-05, the amount will increase by the rate of inflation.

WILL I HAVE MORE DEBT AS A RESULT?

In formulating this student support package Scottish Ministers have made a commitment to ensure that no student has more debt under the new system than they would have had under the old one. Scottish Ministers have abolished tuition fees for all eligible Scottish students studying in Scotland and introduced a bursary system, both of which will directly reduce the amount students need to borrow while they study. There have also been increases in the parental contribution for those from better-off families.

Virtually all students liable for the Graduate Endowment will have less debt than under the previous system, whilst the others will have the same. This means that even if you have to pay the Graduate Endowment, you won't have any more debt.

HOW DO I PAY THE GRADUATE ENDOWMENT?

You will not be asked to pay the Graduate Endowment until the April after you have completed your degree.

You will be able to pay the Endowment in one of three ways; either by taking out a student loan under the existing income contingent loan scheme; or by paying a lump sum; or a combination of both.

If you use the loan system to repay your Graduate Endowment you will not have to make an additional monthly payment for this as well as for your repayment of your loan for living costs. Further details on student loans can be obtained from SAAS.

LOAN REPAYMENTS

WHEN DO I START REPAYING THE LOAN?

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

You will not have to repay anything if your income is 10,000 or less and your loan will be cancelled when you reach 65 or if you die. The amount that you will repay will be linked to your income. 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, but the level of repayments will rise and fall in line with your income. Examples of repayments are detailed below.

If you use the loan system to repay your Graduate Endowment you will not have to make an additional monthly payment for this as well as your repayment of your loan for living costs. The amount of your repayment each month is determined by your income not the value of the 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 self-employed people 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.

Student loans do not attract the same rates of interest that you would be charged if you were to take out a loan from a bank or building society. Interest on the amount of student loan owed will be linked to 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

You must apply for your fees, loan, supplementary grants and bursary through SAAS. If you have any questions about your eligibility or about payment of fees, bursaries and supplementary grants, please contact SAAS on 0845 111 1711 or e-mail saas.geu@scotland.gov.uk

SLC administers the payments of loans and is responsible for keeping details of your account, sending you an annual statement, and answering questions about your loan. If you have any questions about your individual loan account, please write to SLC, 100 Bothwell St, Glasgow G2 7JD or Freephone 0800 405010.

USEFUL ADDRESSES