FAQ questions
Why has NASMA decided to do this?
NASMA appreciates that there are students who are very good with their money and manage to budget on a termly basis, however we are hoping to make this skill more inclusive and budgeting on a monthly basis is what will be required when students enter the world of work. The UK governments should be encouraging people of all age groups, demographics and backgrounds how to budget better and students are no different. In no other walk of life do people get paid over a 3 month basis, and it seems both short-sighted and irresponsible for this archaic practise to continue.
As students often need more money atthe beginning of the academic year, could this be reflected in a larger 1st instalment?
Currently a student receives 33% of their student funding at the start of the academic year and this then has to last them until January. It is a common issue for students to be struggling financially by December under this current system because of the additional costs incurred at the start of the academic year.
Monthly payments are already in place in Scotland and they currently pay 20% of a students funding at the start of term followed by 8 monthly payments of 10% of funding. This system means students would have an extra 7% of funding during their first term when they are likely to need it most.
Are there examples of other students who receive monthly student funding?
As mentioned above students in Scotland are receiving their student funding on a monthly basis. NHS funded students also receive their NHS bursary’s on a monthly basis as well.
How could this affect university/other accommodation payments?
It would be expected that both private and university accommodation providers would update their payment processes in line with when students receive their funding. Accommodation providers only request termly payments because that is the current payment arrangement for students.
This would help prepare students for the transition into work as the vast majority of accommodation providers expect monthly payments of rent.
Will Child Care/other Grants also be paid monthly?
There would be little reason not to include all payments within this change as the main intention is that it is intended to help students budget better whilst at university. There would be no reason why this should not be the case for childcare and other supplementary grants.
Could monthly payments be dependent on attendance?
It is hoped that current termly monitoring reports would continue as monthly reports would increase an institutions workload in order to report a student’s attendance on a monthly basis. However it is hoped that a monthly payment system would help reduce the number of students receiving overpayments when suspending or withdrawing from their course. This should help reduce the amount of stress and anxiety felt by the many vulnerable students who often find themselves in this situation.
Why now?
The SLC is in the process of creating a brand new computer system for the assessment of student loans and grants ready for launch in academic year 2015/16. Again it seems very short sighted not to include the ability to make payments on a monthly basis as part of this new system.
Students have always been paid this way – why do they need to change it?
We hope this change will be for the better, so looking at the history of student loan payments shouldn’t be a reason not to move forward or progress. However the history of payments also helps identify the real need for future change. Student funding was originally paid on a termly basis as it was being paid via cheque, and it was deemed unreasonable to send a cheque to every student on a monthly basis. This was before the time of direct debits, online banking and other advances in modern day banking.
Shouldn’t students just learn to manage their money like everyone else?
Yes, they should and is exactly what this petition is all about, paying students in the same manner as everyone else in this country. It is hoped that by doing this, students will be able to budget more effectively and will manage their money better. This may also reduce the current demand on hardship funds available within HEI’s.