Simple Before and After comparison of Browne Review

Before and after comparison of the Browne Review

	Previously	Now
Cost of Living	You currently receive different amounts entirely dependent on your parents household income. e.g Up to £25,00 you receive full grant of £2,906. Over £50,020 you receive nothing.	“The loan system for the costs of living will be simplified to create one flat rate entitlement of £3,750” Extra loan for those from low income household on top of the standard loan is £3,250.
Cost of Tuition	Currently the cap on fees is set at £3,290. This is covered by the current loan scheme.	The cap on university fees will be lifted.  “The Government will pay the upfront costs of education” up to £6000, universities will be discouraged from charging more since the money will go back to the govt. Universities charging more than £6,000 would be charged an increasing levy on each further £1,000 (45% on the first, 50% on the second, 55% on the third etc), covering the Treasury's cost of lending the money to students
Finance	You can currently apply online or via paper individually for different loans some of which are dependant of your parents household income. This system is seen as confusing and “Many people assume wrongly that fees have to be paid upfront or that student loans are a mortgage style debt.”	You will now get a loan through the SFP. Which is a simplified four stage system. All upfront education costs will be paid  by the government and everyone will receive a basic living grant.
Repayments	Current subsidised interest rate is 1.5%. The repayment threshold is £15,000. You pay 9% interest on your income per month. Currently debt wiped after 25 years.	Interest rate will be 2.2% plus inflation. The repayment threshold will be £21,000 . Loans are now paid back through the SFP. If you come from a high income household and for example your university charges £6,100 you will pay the whole loan back via SFP. A student from a poorer background will pay around 35% or £2,100. Debt will be wiped after 30 years. Graduates would pay back 9% of their income each month - £30 a month on a salary of £25,000, £143 on £40,000 and £293 on £60,000.

What is the SFP?

The SFP is split into four sections:

·                     SF Learning: Government paying the costs of education on behalf of students

·                     SF Living: Providing students with money for living costs

·                     SF Paying: Paying the money back via the tax system.

·                     SF Giving: Easy way for post-grads to make voluntary tax-deductible donations to charity