11th July 2012
Student loan scheme details published
A LOAN scheme for students who will be asked to contribute more towards their tuition fees from September 2012 has been finalised.
In March, Tynwald approved regulations that mean students starting postgraduate courses in September 2012 will contribute £5,000 a year towards their fees (up from the current £1,000), or the fee if lower.
The regulations also mean that students who take undergraduate degree courses will contribute £5,000 a year towards the fourth and subsequent years’ fees (again up from £1,000), although this rise in contributions will not affect existing students, meaning it will be three years before it has an impact.
Although applications for funding are still being received, it is expected that around 100 students will start postgraduate courses this year and will be affected.
The £5,000 contribution does not apply to students who are studying on the Isle of Man. When the regulations were approved, it was announced that a loan scheme would be introduced to assist students. Arrangements have been finalised with the Isle of Man Bank.
Loans will be offered at 3 per cent over the base rate and repayments will commence a year after graduation and take place over a maximum of eight years.
Loans will be subject to individual agreements between banks and eligible students. They will be guaranteed by the Treasury and there will be no penalties for early repayment.
Students must apply to the Department of Education and Children for funding in the usual way and, once their eligibility has been determined, can then seek to obtain a loan to meet the cost of the contribution. Postgraduate students who have already applied for funding for 2012/13 have been advised of the loan scheme arrangements.
All students are invited to contact firstname.lastname@example.org or ring 685822 for full information about the loan scheme. The Department of Education and Children is continuing to meet the balance of tuition fees for contributing postgraduate or longer degree course students, up to a maximum of £9,000 a year.
It is paying tuition fees in full for students taking three-year degree courses, subject to the same £9,000 a year cap with the exception of more expensive courses in clinical medicine, dentistry, veterinary science and conservatoire music.
More than 1,400 students studying for higher education qualifications in the UK, at the Isle of Man College of Further and Higher Education and via distance learning are currently receiving financial support from the Isle of Man Government. Just under a third of them also qualify for maintenance grants. The budget for this support exceeds £11 million this year.
Useful background here.