Life Beyond Uni

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Life Beyond Uni

Contents 2. Introduction 4. Student Loan: What you need to know 6. The world of work 9. What else? 11. Get advice!

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Welcome to the world after university! This booklet aims to highlight some of the changes that happen when you are no longer a student and gives practical tips on some common situations you might face. It can’t hope to cover all the circumstances of everyone leaving this year but should give you some useful info e.g. what happens about repaying that scary student loan, or where you can access practical and legal help/advice regarding problems you may have after you leave.

Please note that all reasonable attempts were made to ensure the information in this booklet was correct at the time of print ( April 2011). However, circumstances do change and we are not responsible for errors/omissions – please check with the relevant authorities for the latest information.

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What changes? • • • • •

No more student discounts You become liable to pay council tax Hopefully you will be earning lots, but this means you will be paying tax If you earn enough you will have to start repaying your student loan debts The bank will change your student overdraft to a graduate overdraft 3


Student Loan: What you need to know... You can find out all about repaying your loan at www.studentloanrepayment.co.uk.

When do I start repaying?

You begin repaying from the start of the tax year ( 5 April) after you finish or leave your course ONLY if you’re earning over £15,000 for the year. You repay your loan at the rate of 9% of your income over £15,000. For example, if you’re earning £16,000 you would repay £7.50pm. If you earn £25,000 you’d repay £75pm. If you are working and paying tax your employer will deduct the payments at source via the tax system (but it’s a good idea to keep your payslips as evidence in case of any problems). If you are self- employed you will have to repay it through the selfassessment tax process.

How much interest do I pay?

This is charged daily and is linked to inflation; at the time of writing from 1st September 2010 to August 2011 this will be 4.4% but check the SLC website or your student loan statements for the latest rate.

What if I don’t tell the Student Loan Company my details?

They can make penalty charges and ultimately demand the debt be repaid in full immediately.

What if I will be working abroad- surely I don’t have to pay then?

If you will be working abroad obviously you won’t be able to repay the loan through the UK tax system so you have an obligation to tell the SLC your new details and provide details of your income. They will then calculate how much you should repay based on your income- it will be on the same basis as in the UK ( i.e. 9% of your earnings over a certain level) but the level at which you start repaying varies according to the country you’re in - to take account of cost of living etc. For example - if you are working in Poland you’ll have to start

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repayments if you earn over the equivalent of £9000, but in Ireland or Switzerland you can earn up to £18,000 before you will have to begin repayment.

What if I change jobs?

Your P45 will have a Y code on it, confirming that you have a student loan and indicating to your new employer they should make deductions. If you don’t have a P45 you have to fill in a P46 for your new employer, which will have a box on it asking you if you have a student loan.

What if at the start of the year I’m earning over £15,000 but get a job earning less, or only work for a few months?

You can get a refund of the payments you made earlier in the year, if at the end of the tax year you’ve earned less than £15,000. However, you have to wait until the tax office can confirm your annual earnings to the Student Loan Company and you have to request a refund- it won’t happen automatically. However, if you have paid more, you may want to leave it unless you need money desperately- paying off the loan quicker than you need to reduces the amount of interest you have to pay overall and you will pay off the debt quicker.

Is the loan ever written off?

Yes, in certain circumstances e.g. after 25 years from the April when you should have started repayments, on death or if you are permanently unfit to work due to disability.

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The world of work If you have no job lined up...

Don’t forget that you can use the Careers and Employability Centre services on campus for three years after you graduate see www.sussex.ac.uk/careers. Now that you are no longer a full time student (after your official leaving date) and if you are unemployed you can sign on for benefits, for example, Jobseekers Allowance (JSA).There are various rules you have to meet - for example you have to show that you’re actively seeking work, you don’t have savings/ capital over a certain level and you have entered a Jobseekers agreement. If Jobcentreplus (the name for the government office that pays Jobseekers Allowance) feel that you’re not meeting the rules they can suspend, reduce or stop your benefits – get advice if you face this situation. Make a benefit claim online: www.direct.gov.uk/en/Diol1/DoItOnline/DG_178228 Or call 0800 055 6688. If you get JSA and are renting you may be able to get Local Housing Allowance (also known as Housing Benefit) – but you will need to make a separate claim from your local council. See www.direct.gov.uk or your local council’s website for more details. Please note that if you are single and under 25 (under 35 from April 2012) with no disabilities, the level of help that you get may be restricted to shared accommodation – always check with the local council the maximum that they will pay in your circumstances (this may well be less than your actual rent), before signing up to a housing contract. You can also claim Council Tax Benefit from your local council. Please note, if you are married or co-habiting as a couple, you may not be able to claim in your own right- please get advice. The government is also introducing big changes to the benefit system over the next few years and these changes generally restrict benefit entitlement and the amounts payable. Seek advice if you want to know more.

If you work part time

If you work under 16 hours per week and your earnings are low enough you may still qualify for Jobseekers Allowance. Otherwise, you may still be eligible for certain benefits - for example, Housing Benefit (Local Housing Allowance) for help towards your rent and/or tax credits depending on your income and circumstances. You may also still qualify for some Council Tax Benefit.

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See www.hmrc.gov.uk to check if you can get tax credits, including eligibility calculators, or call the Tax Credit Helpline on 0845 300 3900.

If you are sick or disabled

You may be able to claim sickness benefits ( if you can’t work) or disability benefits ( if you have care or mobility needs). There’s been recent changes to some of these benefits and a benefit called Employment Support Allowance has been introduced, with the emphasis on helping people into work. Please see www.dwp.gov.uk/eservice to claim, or call the Benefits Enquiry Helpline on 0800 882200 for more information and get advice on how these changes may affect you. This area of benefits is complex and currently under review, so get advice when claiming and if you are refused benefits.

Do I need a contract?

Even if you have no written contract you will still have certain rights under UK law - for example, the right to a statement of terms and conditions, right to a payslip, to be paid at least the national minimum wage and get paid holiday. There’s also legislation outlawing harassment and various types of discrimination. If you have a written contract, check this, as it may give you more rights than the legal minimum.

Holiday pay/leave

You’ve been working hard all year and will really value your holiday time! Under UK law employers have to give full time employees 5.6 weeks paid holiday a year (this includes public holidays), but you may be entitled to more under your contract. If you’re part time leave is worked out in proportion to the number of days you work.

Maternity rights

Are very complicated! Please check these websites for information on rights and benefits: www.direct.gov.uk and www.workingfamilies.org.uk

Dismissal/notice

If you have been working for your employer for between 1 month and 2 years you are entitled to at least 1 weeks notice by law but you may get more than this under your contract. You can be dismissed without any notice in cases of gross misconduct. If you want to leave your job, check your contract for the notice period you need to give – if there’s no contract then you must give 1 weeks notice if you’ve worked there more than 1 month.

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3 is the magic number!

Remember that if you need to challenge your employer and take them to an employment tribunal to enforce your rights there are very strict deadlines- usually only 3 months from the date of the problem – so get advice as early as possible.

What about Facebook?

Social networking sites are really popular and many of you will have spent many happy hours surfing and avoiding essay deadlines! Once you’re at work especially in an office environment, check what the etiquette is about personal internet use - some employers don’t allow personal use at all, some only allow it at lunchtime, some monitor which sites you visit! Be careful what you say about your employer or lifestyle on internet sites/ forums which are in the public domain- there have been cases of people being dismissed for defaming their employers or exposing work practices on the internet.

For more advice on your employment rights see:

vwww.acas.org.uk or call 08457 47 47 47 www.worksmart.org.uk - jargon free with lots of FAQ’s

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What else? If you’re studying further

Hopefully you will have sorted out your funding for fees and living costs already, as most postgraduate degree courses (with exceptions such as teaching and social work) do not benefit from statutory funding like undergraduate courses. Deadlines for funding are early in the academic year preceding the September/October you want to start on your further degree, and funding is usually competitive. Check out whether the uni you are applying to offers scholarships - for example, if you are staying at Sussex you may be able to get the Alumni Study Award (£300 for full-time UK/ EU students, £150 for part-time UK/EU students and £1000 for full-time international students). You could also try applying to various trusts and charities, but they all have different qualification criteria and you may have to make several applications for small amounts of money. Also, see Prospects www.prospects.ac.uk or www.scholarship-search.org.uk for information on funding opportunities for postgraduate study.

If you are going travelling…

Lucky you! There’s lots of websites and published books about travelling and gap years abroad etc – some things you may want to think about: • • •

• •

Inform the SLC you’ll be abroad Make sure that you have a valid passport and have applied for relevant visas Take a copy of your passport, any tickets/ booking references , visas, insurance etc and leave them with someone reliable so they can be faxed through to you if the real ones are lost/ stolen Get all your jabs and dental treatments up to date before you go Don’t forget travel insurance and check out your coveryou may not be covered if you ride certain vehicles/ do extreme sports

See this website www.fco.gov.uk/en/travelling for more tips and travel safe.

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If you are moving in with your partner…

Be aware that living together doesn’t automatically give you any rights to your partner’s house or money! Check out this comprehensive website if you want to know about the implications of living together, such as claiming benefits as a couple: www.advicenow.org.uk/living-together

If you’re staying in a student house (but are no longer a full time student)…

Remember if you’re staying on in a student house where all or most of the others are still full time students you’ll be liable for the FULL council tax on the property (minus a single person discount if you’re the only non student). There’ll be no discount at all if there are 2 people or more living in the property who are liable to pay council tax. You could have a hefty bill and your student mates are under no obligation to help you out with the cost. Check out the council tax rates for your property on your local council’s website. Depending on your circumstances/ income you may be able to claim some council tax benefit.

You are an international student and want to stay on in the UK…

As you may be aware there are big changes happening in the UK immigration rules, so it’s essential you get up to date advice. If you’re still a student at Sussex contact the University’s International & Study Abroad Office. There is a Post Study Work Scheme available to international students who graduate before April 2012 , but rules often change, so always check the latest information. If you’ve left Sussex you can get advice from UKCISA - this is an independent agency that advises international students and has useful comprehensive factsheets on their website www.ukcisa.org.uk. You can also ring them on 0207 107 9922. Two useful factsheets are: Preparing to return home http://www.ukcisa.org.uk/student/info_sheets/returning_ home.php Working after your studies http://www.ukcisa.org.uk/student/info_sheets/working_after_ studies.php

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Get advice! We hope you find this info useful – please let us know if there’s more areas you feel would be helpful to be included. It’s impossible to cover every issue that may come up when you leave but the following websites offer good all round information and advice and are a good place to start if you have got a problem.

General

Direct.gov - www.direct.gov.uk. Government website with basic information about all subjects and links to more specialist information- good starting point Citizens Advice - www.adviceguide.org.uk. National advice charity who advise on anything and have a nationwide network of advice centres, useful factsheets etc Advice Now - www.advicenow.org.uk. Good comprehensive, jargon free website with advice and tips on most subject areas Community Legal Advice www.communitylegaladvice.org.uk or 0845 345 4 345. Some basic advice on certain subjects (e.g debts, employment, benefits), if you ring them they can diagnose your problems and refer to an advice provider or solicitor in your local area. In some circumstances you may only be referred if you qualify for legal aid. NB This site will be accessed via www.direct.gov.uk from April 2011.

More specialist advice

Housing advice Shelter – www.shelter.org.uk or call 0808 800 4444

Consumer (legal and tips) www.direct.gov.uk/consumer Consumer Direct call 08454 04 05 06

Consumer (tips and latest money saving offers) www.moneysavingexpert.com

Debt National Debtline – www.nationaldebtline.co.uk or call 0808 808 4000

Employment www.worksmart.org.uk or call ACAS on 08457 47 47 47

Health and Welfare NHS Direct – www.nhsdirect.nhs.uk or call 0845 4647 Samaritans – www.samaritans.org.uk or call 08457 90 90 90 (24/7) 11



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