Information for:

OFFA guidance on inflationary increases and updating access agreements for 2009-10 (HEIs and FECs)

To: Principal contact for OFFA / Managers responsible for access agreements

21 May 2008

In brief…

Following the announcement of inflationary increases to fees for 2009-10, all institutions must confirm their fee limits, bursaries and eligibility thresholds for 2009-10 with OFFA by 18 July 2008.

Inflationary increases – the new levels

DIUS has announced the inflationary increases that will apply to fees, grants and loans, and details of the income thresholds for eligibility for state grants. The main changes are:-
overall, state financial support for eligible students in 2009-10 will be 2.6 per cent higher than in 2008-09, in line with forecast price increases

• the maximum fee payable by students who entered higher education on or after 1st September 2006 and who are being charged variable fees, will increase from £3,145 to £3,225 in 2009-10. This increase will be matched by a corresponding increase in the loan for fees that students can take out

• the maximum level of Higher Education Maintenance Grant/Special Support Grant will rise to £2,906

• income thresholds for eligibility for state grants for new entrants in 2008-09 and 2009-10 will remain at £25,000 for the full grant and increase to £60,032 for a partial grant

• income thresholds for eligibility for state grants for students who were new entrants in 2006-07 or 2007-08 will remain at £18,360 for the full grant and increase to £39,333 for a partial grant

• the maximum fee payable by students who are not being charged variable fees (mainly students who entered higher education before 1st September 2006), will increase from £1,255 to £1,285.

Full details will available on the DIUS website in a Student Support Information Note (SSIN) in due course.

What you need to do – guidance from OFFA

All institutions must increase their minimum bursary to ensure that it meets the difference between the level of full Higher Education Maintenance Grant and the fee charged. For example, if you want to charge the full fee of £3,225 in 2009-10, you will need to offer a minimum bursary of £319.

You don’t have to increase your bursary levels (other than the minimum bursary you offer) or eligibility thresholds unless your access agreement commits you to do so. However, you may wish to do this to make sure that the value of your financial support package is not eroded over time.

All institutions should confirm their fee limits, bursaries and eligibility thresholds for 2009-10 with OFFA by 18 July 2008. This year institutions are also asked to confirm any franchise partners that will be covered by their access agreement in 2009-10.
This deadline allows us to confirm approved fee limits of institutions and their partners with the Student Loans Company (SLC) prior to the start of the application process.

Confirmation can be provided by amending the access agreement or by completing the
template linked below.

Fee and bursary update template 2009-10 – HEIs and FECs

Any other material changes to access agreements; where the fee limit is increased, bursary amounts are reduced or eligibility narrowed, should also be made by 18 July 2008.

When we need to hear from you

You must confirm your fee limits, bursaries and eligibility thresholds for 2009-10 and let us know of any other material changes to access agreements by 18 July 2008.

Please send amended agreements and completed update templates to accessagreements@offa.org.uk.

Got a query?

If you have any queries about the process for submitting a new or revised access agreement, please contact Chris Scrase or Richard Smith by emailing enquiries@offa.org.uk or phoning 0117 931 7171.