Saturday 21 May 2016

Levitate Student -Money Smoke & Mirrors

It seems to me that with respect to student money matters all politicians act like old fashioned variety hall magicians. What ever the colour of their capes, red, blue, yellow….they all deliver surrounded by smoke and with mirrors strategically placed
In response to an article on wonkhe that suggests politicians on the left don't understand the system - I  am not convinced. What I believe is that politicians devise, like all good magicians, ways to deliver the same old trick with a different spin. Some of their audience are wily “seen it all before” types looking out from the start for the sleight of hand,distractions and not in the least bit impressed by the showmanship. Others in the crowd do know it’s not what meets the eye but just can't help fall for that pesky double dealing. Some in the audience will take it all on face value and depending on how they feel about the illusion will applaud, reel back in horror, or tremble in fear, In fact some may avoid the show all together having heard just how scary it all sounds.
When Ed Miliband was shouting “roll up, roll up watch me slice a £9K fee to £6K by laying it in my magic box” some folk may have fallen for the trick.This will have included those who never quite grasped the “see this fee loan and this HEFCE grant – I put it in this envelope – give it a shake pass to the student – open it up – the fees haven’t changed really -- Ta da!”. Those who saw how the envelope trick worked shared their insight so by the time Ed came up with his £6K smoke and mirrors version the audience was not that impressed, he seemed like nothing better than a one trick childrens party magician.
Before Ed though came Nick Clegg with a very naughty trick indeed.
Nick was disgruntled at playing glamorous assistant when he reckoned he had all the skills of a master magician. He had promised audiences he would be the next David Blaine of tuition fees (make them disappear altogether) but he never made it beyond sidekick, sitting pretty, yet muted at David Cameron's shoulder. To appease him he was allowed to play a little and came up with a Chad Valley style magic kit, a cash sweetener for the half time interval called the National Scholarship Programme (NSP). Nick sent the box of tricks to the universities who received it with a bored sigh. Some read the instructions fully, others less so. Some delivered the trick with aplomb making sure some audience members received their promised incentive. Other Unis though saw a way to be even more tricky, pocketing the audience watches while they were reaching eagerly for a fee waiver golden ticket. Imagine the students disappointment to later to find the ticket was nearly worthless and the uni had banked their cash prize.
Anyway like a lot of these tricks the NSP was just a flash in the pan.
What students and their families need are Penn and Teller type politicians who are prepared to let them in on how it's actually done. To be fair, audiences are all the more impressed in the full knowledge. Creativity isn’t stifled, new and more effective ways to deliver the trick are still explored and devised – but without the smoke, the mirrors, the watch stealing and the vainglorious – pull the wool over your eyes – showmanship.
The audiences are ultimately happy to be in on the act - as the late great Paul Daniels would say "now that's magic!"

Monday 16 May 2016

Levitate Student: Higher Education White Paper, changes afoot

Changes in Higher Education are all part and parcel of the sector but for the uninitiated it can all seem very bewildering and as if the players are all speaking in a secret code. Today Jo Johnson MP Minister of State for Universities and Science delivered the White Paper - Success as a knowledge economy: teaching excellence, social mobility and student choice .  A higher education bill will follow later this week.

Many prospective students and their families may find it tough to understand the various media perspectives and worry what to focus on. To help  the fabulous wonkhe shared their expert insight in concisely reporting the days events and response with more considered analysis to follow.

When you work in HE it is common to play "bingo" with all the terminology, acronyms, theories and theses. Levitate Student rather liked the comment by Emran Mian of the think tank Social Market Foundation

“Higher education is too much like a club where the rules are made for the benefit of universities. These reforms will begin to change that. Students will have access to more information when they’re making application choices; and universities will be under more pressure to improve the quality of teaching"

Certainly it can seem like a club where many staff and students don't even feel like fully signed up members even if they are paid up. Changes can often result in new students being unclear what they are signing up for.

Levitate Student is interested in money and consumer matters first and foremost. What we know from the changes on that front is that the current £9,000 fee cap will be subject to change from 2017. The level to which the fee charge can rise will be linked to teaching quality. This will serve to counter the stance taken by the unis when they were allowed to offer a "variable fee" and the majority opted to charge the maximum irrespective of their reputation, quality or league table slot. Universities will now face more regulation, requiring them to be more open and transparent about data sharing particularly regarding quality and students outcomes and destinations. They will also need to be comfortable with any new providers entering the market competing for their customers. Fees rising will displease many who fight for education for all as a right and would wish to see no tuition fees.

Fee levels will be allowed in some case to rise with inflation, linked to the Retail Price Index (rather than the Consumer Price Index) which is better for the universities purses than the student's.

In 2016/17 the Maintenance Grants (see Maintenance Grants RIP) are to be removed from the funding package in England and so the total burden of student loan is set to increase even more for future students. A niggle of doubt is a system of loans (not grants) would be easier to off load by Government in the future to private lenders. Come what may the sector is moving further and further away from non-repayable grants to support those from lower income backgrounds. Lets see how the devolved governments adjust their funding provision in time, will they follow England lead or take their own stance?

We share the hope expressed by Les Ebdon the Director of Office for Fair Access 

“I welcome the increased emphasis on fair access to higher education in this important White Paper. Making sure that talented people from disadvantaged backgrounds are able to access – and succeed – in higher education is key to increased social mobility"

We like the potential for more mobility within programmes of study to include the potential to transfer more easily between institutions. This will help students with changes of circumstances and hopefully those students whose confidence builds from the point of admission. More customer choice is always welcomed though not if the resulting award is regarded as sub-standard so it will be interesting to see how this option develops. Also the new HE providers will have no track record of success and freedom to move from a poor provider is limited by the number of years of funding entitlement. Needing to repeat elsewhere because a course wasn't up to standard will only mean a wasted year of funding.

The photographed government document leaks referring to "marginalised students" does cause a doubt as to whether the hope is that these "challenger" providers are considered an option for the "marginalised". Don't worry if you are not deemed suitable for Oxbridge....you can always study at Facebook Central......
We would rather the so called "marginalised", were less so and supported through fair access to the institution of choice based on ability.

Alex Neill, Director of Policy and Campaigns at Which?  said

“We welcome measures to give students more insight into student experience, teaching standards and value for money. These proposals could not only drive up standards, but could also empower students ahead of one of the biggest financial decisions of their lives."

We share this view and welcome the shift that alternate private providers must register with The Office of the Independent Adjudicator . We would like responsiveness to complaint handling improve and time scales for resolution reduced considerably. 

 Which reported that many universities fail to meet requirements set by the Competitions and Markets Authority with respect to how students are treated as customers. Universities do have a long way to go yet in delivering holistic, institution wide customer service excellence.

Our biggest niggle of all is not having the certainty anymore that the system a student signs up for won't be subject to significant change after they are locked in. 


Tuesday 10 May 2016

Levitate Student: Finals, Benefits & Beyond

Many final year Higher Education students will be delighted to be in the home straits this month. Studying hard for exams, submitting dissertations and looking longingly to the bright light at the end of the tunnel.


Hopefully in the near distance will be exciting job opportunities and a rewarding future. Of course your journey may not be as simple as finishing your course and straight into work. You may need to consider applying for welfare benefits as you hunt for work.

Most full time Higher Education students are not eligible for welfare benefits so this may be your first time considering it as an option. This blog post is a signpost to information for Job Seekers and other matters that you may want to consider as you finish your course.

Welfare Benefits

Once your course come to an end then you will no longer be regarded as in full-time education. Check your university or college academic calendar to establish the last day or check with your institution Student Registry service. Just because your exams are done doesn't mean you are no longer registered as a student.

There are a lot of changes taking place in the world of welfare benefits at the moment, so what benefit you may be able to apply for while looking for work will depend on at what stage of the welfare reform the area you live in has reached.

As your circumstances are changing you may consider seeking specialist welfare benefit advice to make sure you and your household are receiving all the benefits to which you are entitled. (See our Know where to Look page).

If you are actively seeking work then you should consider applying for

Job Seekers Allowance

or if you live in certain Jobcentre areas 

Universal Credit

Depending on your circumstances you should also consider 

Housing Benefit
Council Tax Support 

Completing a sub-degree and topping up in September 

If you are completing a sub degree such as a HND and intend to return to top that course up to degree level in September 2016 you should be able to apply for welfare benefits between the two course.

All the normal eligibility requirement for those benefits will apply.

National Minimum Wage


If you haven't been too busy swotting then you may have heard that there have been changes to the National Minimum Wage . Check the details to ensure any job you already have or take up, is paying at least the minimum required.

National Insurance and Tax

You may want to understand why we pay National Insurance and how it affects entitlement to certain welfare benefits including the State Pension. Signing on for welfare benefits such as Universal Credit or Job Seekers Allowance (if eligible) will mean that a National Insurance contribution is made. Gaps in your contribution over a lifetime can be problematic.

As you find work, change employers or the number of hours worked, you may benefit from better understanding your Tax Code and Payslips .

Graduate Bank Accounts

If you have a student bank account with an interest free overdraft you may want to explore alternative bank accounts. As you are no longer a student then it is likely taht the bank will look to charge interest on your overdraft. If you have a residual overdraft that you will not be able to pay off then explore a Gradate Account which will allow you a period of time to pay back the overdraft interest free. If you don't have an overdraft - well done! Look for an account that best suits your consumer needs going forward, whether that be one that offers high credits interest, low overdraft interest etc. Shop around, no need to stick with the provider you are with now.

www.moneysavingexpert.com and www.moneyadviceservice.org.uk offers useful guidance

Repaying your Student Loan


If you have taken a Student Loan from the Student Loan Company in order to fund your course you will become eligible to start repaying in the April following completing your course. 

Whether you have to pay anything back will depend on your earnings and when you started your course.

Visit The Student Loans Company Repayment Site for information.


Postgraduate Study and funding options

The government is introducing student loans for postgraduate study from 1st August 2016.                                                              

Other useful information can be found on www.gov.uk and www.prospects.ac.uk  

Other types of Government funded postgraduate study

NHS postgraduate courses and Social Work Courses www.nhsbsa.nhs.uk/Students  see link to Student Bursaries. 

Postgraduate Certificate in Education (PGCE) Courses  www.gov.uk/teacher-training-funding

Professional and Career Development Loans - bank loans where the government pays the interest while student is studying and coordinated by the National Careers Service www.gov.uk/career-development-loans 

Other funders

Research Councils www.rcuk.ac.uk  



Thursday 5 May 2016

Levitate Student: Estranged Students

Just a quick post to flag up progress regarding how the Student Loan Company process applications from Estranged Students. 

When aged under 25 most students are regarded as financially dependent upon their parents for student money purposes. This means that the student's entitlement to mean tested finance will be assessed on their household income including the income of the parent they live with (and that parents partner if applicable).

Life isn't quite that simple though is it? So there is provision in the Education (Student Support) Regulations 2011 for when a student is aged under 25 but wishes to be assessed as Independent from their parents. These are outlined in Schedule 4 Financial Assessment paragraph 2 of these regulations .

( Please note Education (Student Support) Regulations 2011 have been subject to various amendments which are not included in the version on www.legislation.gov.uk )

This provision for independence includes for example 


  • Where the parents are dead.
  • Some circumstances where the parents can't be found; or that contacting them may put them at risk; or it wouldn't be reasonable to expect them to send funds to UK. 
  • When a student is or has been married or in a civil partnership.
  • When the student has a child or care of a child under 18 years old.
  • Some circumstances when the student was in care after the age of 16.
  • If the student can demonstrate financial independence for an aggregate of at least 3 years before the course began. 
  • Then criteria often called being "estranged" - and in the regulations it states....... 
(e) the student has communicated with neither of the student's parents for the period of one year before the beginning of the relevant year or, in the opinion of the Secretary of State, the student can demonstrate on other grounds that the student is irreconcilably estranged from the student's parents; 

In reality a student may be estranged from their parents for many reasons; domestic violence or abuse; issues of acceptance relating to sexual orientation; religious differences; you name it the list could go on and on!!

The problem students face is trying to persuade the funders such as Student Finance England that they are in fact estranged and therefore assessed as independent of their parents.  

SFE relies on evidence in order to be satisfied that a student fulfills any of the requirements laid out in the Education (Student Support) Regulations 2011. The same is true for all the other agencies administering the funding for higher education.

If only life came with a documented narrative signed off as "the truth" by some trusted authority that could be submitted as evidence later when needed. Unfortunately in reality the many reasons that result in a student becoming estranged are not reported, documented or even shared with others.

For example how and who do you tell, that you have suffered sexual abuse from a close family member, a parent maybe? Perhaps the trauma of it (now you are older) has only just started to fully impact you. Perhaps you are still struggling to understand what it all means, how you feel, what you want to do. Maybe you have never lived apart from that parent but no longer feel safe in the home. What evidence would you send to a funder to explain this was your circumstance? How would you confirm each year that your situation hasn't changed?

Students who find themselves "estranged" often struggle to prove it. Reaching out to teachers, police, social workers, advisers, religious leaders, family, friends to help can be a very daunting, a barrier. You want to go to university, your funding depends on your parents, your relationship with them is fractured, broken, but the time isn't right for you to share the struggle you are facing with others. What do you do?

Fortunately work has been taking place on behalf of students left vulnerable by the regulations and evidence requirements by the likes of National Union of Students, National Association of Student Money Advisers and over recent years the charity Stand Alone

The Student Loan Company  have now implemented application processing changes in support of estranged students applying to Student Finance England and Wales (follow the link for info) which is definitely a step in the right direction. 

If you need help and guidance relating to being estranged from your parents then please consider contacting one of the organisations mentioned or the Student Service department at a higher education institution. 



Tuesday 19 April 2016

Levitate Student: Freshers Do Buy, Don't Buy

Time for more Money B’s!

This time it's what to Buy and what Not to Buy when leaving home for university (#DoBuyDontBother)

We know not all students are traditional school/college leavers but many are and in September they will be leaving to live away from home for the first time.

Planning what to buy for that transition can be tricky. Many universities and other websites provide guides to assist new students to plan, For example there is a really comprehensive checklist on Studential.com .

A list is it doesn’t really tell you what to Buy and what not to Bother with.

So we have asked a few students for their thoughts and added a few of our own for good measure.


Tuesday 29 March 2016

Levitate Student: Freshers Talking Heads - Accommodation

Freshers Accommodation Video


Two students discuss their experience of living on campus and in private rented accommodation as a first year student.




Thursday 10 March 2016

Payday Loans - guidance from Debt Camel

A survey last year found that “26,400 undergraduates and 5,400 postgraduates depend on payday lenders and could be paying annual interest rates of up to 1,500%” – so if you are a student who has fallen into the payday loan trap, you are not alone! Payday loan companies make their profits from people with money problems and students are an obvious target for them. At least one lender has students as its main market.

You may have seen that some lenders such as Wonga were made to write off loans that had been defaulted on. But even if you repaid your loans on time, you may be able to get a refund if your loan was “unaffordable” by making a complaint to the lender first, and then going to the Financial Ombudsman if the lender rejects your complaint.

A loan is “unaffordable” if you couldn’t repay it on time and still have enough money left to pay your rents, bills, and everyday living costs such as transport and food. For students, this means looking at what your expenses would be before your next student loan or grant payments arrive. If you repaid £300 at the start of October it may have felt easy, but as a result you didn’t have enough to live on and had to borrow again before the next term started – in this case the loan you repaid in October wasn’t “affordable”.

The Ombudsman is often looking at cases where people have borrowed on a regular basis and deciding perhaps the first loan was OK because the lender couldn’t have realised the borrower had problems. But students have a pretty low income, and so any indication of repeat borrowing should have made the lender stop and think whether they should lend to you again… but all too often they didn’t, just handing out more loans.

There are some template letters for making an affordability complaint on my website at Can you get a payday loan refund? You will need to change these to tell your story, for example mentioning when you get your grant money and what your expenses are until the next instalment.

Where a complaint succeeds, the lender is normally told to refund all the interest and charges that were added, plus 8% interest. And also delete the loans from your credit record, as they should never have been made.


Debt Camel's profile photoThis is a guest post by Sara Williams, a CAB advisor who blogs about debt at Debt Camel

Note from Levitate Student - thanks to Sara for this excellent post. Some students face challenges trying budget on student finance much of which is  paid quarterly, and this can lead to pressure to find funds in the short term. High cost credit is unlikely to be the right solution and could lead to long term problems. Always seek advice from your institution money advisers or other trusted money advisers about income maximisation and debt issues. See Know Where to Look page.

Thursday 3 March 2016

Levitate Student - Accommodation Protest

UCL Students protest accommodation costs

Students at UCL are working up to a rent strike regarding the soaring accommodation costs as reported here by The Independent 

This is an important matter for the students, their families and the institutions themselves.

University halls vary widely in quality and price. The contract terms too vary with respect to number of weeks the tenancy runs, times when the room needs to be vacated, bills & extras included and so on. Universities vary too in the housing stock available, some able to accommodate all their freshers, others directing their students to private halls of residence or the private landlord sector.


Student in Rented Accommodation
Student in accommodation
Universities vary in when and how they take the rent payments. Many take the rent in termly installments. Some front load their accommodation charge such that the first installment of rent is perhaps 40% rather than a third of the full cost. This strategy can leave a new student with little no student finance left in their bank account. Starting their student life overdrawn or turning to family for extra help. This can certainly diminish the excitement of the start of their new journey. Also it can come as a shock to a new student, who after a week or two decides they do not like the university & wants to withdraw, that they are tied into that legal tenancy. They didn't realise they would still expected to pay the rent or find a replacement student for their room. 


New students may feel a pressure to move into halls or risk miss out on the full student experience. They may worry that the option of looking for a room in a student private rented is too scary for a first year especially as they wouldn't know their housemates.  

How much does the pressure on the students give confidence to the senior managers, responsible for the accommodation income, to hike the rent tariffs? We recall one such manger saying - "well they keep on signing up which is good". That's the bottom line, if they "sell" every room then that understandably affords them confidence. 

The student consumer is not really empowered in this transaction. Many must feel like they have no option but to sign up. That then leads to the collective consumer grievance now being expressed by students at UCL and expressed by many students up and down the UK. As consumers some feel they have to buy into a service which they don't consider value for money or affordable based on their circumstances. 


Money Bee
The growing dissatisfaction will not be going unnoticed by university senior management teams. Universities have shifted to calling students customers and now need to respond appropriately to that customer voice. 

Students need to be confident and empowered consumers, be fully informed and raise their concerns to seek the changes in the student industry that they want.

See our Know Where to Look pages for Housing Advice



Wednesday 2 March 2016

Levitate Student: EU students -

EU students - changes to residency rules

On March 1st 2016 Joe Johnson MP (Minister of State for Universities and Science) announced a significant planned change to the Education (Student Support) Regulations 2011 which will change the residency requirements for EU national students.

Currently an EU national is entitled to apply for

  • Tuition Fee Loan only if they come to UK to study in Higher Education
  • Tuition Fee Loan and Living Cost Support (currently loans and grants) if they have lived in UK for 3 years prior to the start of their course.
  • Tuition Fee and Living Cost Support if they are a EEA Migrant Worker or Family Member of a Migrant Worker
The proposal is to increase the residency requirement from 3 years to 5 years before an EU national can be eligible for the living cost support in their student finance package.

The government cite the increasing pressure on the student finance budget due to the level of EU applicants and their desire to manage the burden on the tax payer as their reason for the change. The changes will impact students starting a new course in academic year 2016/17.

Many EU nationals of course fall into the category of an EEA Migrant Worker and pay taxes themselves to the UK. These changes will not affect the entitlement of Migrant Workers and their families according to the statement. Neither will it affect "those who are already studying". 

If you are an EU national living in England and thinking of starting a Higher Education course please seek advice on this change before starting the course.

It will be interesting to see how the devolved government and assemblies of Northern Ireland, Scotland an Wales respond to this change and whether they follow suit. 

Useful information and guidance is available through UKCISA