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Student Loan eligibility / Savings

lukesan244
lukesan244 Posts: 3 Newbie
in Loans
Hello,

Does having savings affect how much student loan you receive? At what level of savings does start to reduce the loan, if any?

That is all

Luke

Comments

  • Kavanne
    Kavanne Posts: 5,093 Forumite
    Yes. Everyone is entitled to a tuition fee loan, regardless of savings. But you can only have 75% of the maintenance loan if you do not submit income details (It is called means testing). The other 25% is means tested and you would have to submit income details for you and your parents to see if you can have it.

    This website is a good start: http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/index.htm
    Kavanne
    Nuns! Nuns! Reverse!
    'I do my job, do you do yours?'
  • Taiko
    Taiko Posts: 2,721 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    The only thing with regards to savings looked into when an assessment is carried out is the gross taxable interest from them.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Taiko wrote: »
    The only thing with regards to savings looked into when an assessment is carried out is the gross taxable interest from them.

    About time you got on here!!! TSR sucks!
  • lukesan244
    lukesan244 Posts: 3 Newbie
    Taiko wrote: »
    The only thing with regards to savings looked into when an assessment is carried out is the gross taxable interest from them.

    Ok. So I take the gross taxable interest is counted as income and the means tested part of the loan is worked out using income? So having £7000+ (almost the size of the loan and grant I will get) saved shouldn't mean I'll get a smaller loan (I should get maximum as my parents earn nothing and the interest on my savings will not be anymore than £400).

    Luke
  • Kavanne
    Kavanne Posts: 5,093 Forumite
    Lokolo wrote: »
    About time you got on here!!! TSR sucks!
    Oh hai......
    Kavanne
    Nuns! Nuns! Reverse!
    'I do my job, do you do yours?'
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    lukesan244 wrote: »
    Ok. So I take the gross taxable interest is counted as income and the means tested part of the loan is worked out using income? So having £7000+ (almost the size of the loan and grant I will get) saved shouldn't mean I'll get a smaller loan (I should get maximum as my parents earn nothing and the interest on my savings will not be anymore than £400).

    Luke

    More than likely. You may get a slightly smaller grant as your income is also classed as household income, but £400 means you might lose out on £1 or 2!
  • Taiko
    Taiko Posts: 2,721 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Indeed. A student needs several thousand pounds of unearned income for it to have any affect on means-testing anyway, so your savings aren't really nothing to worry about.

    And yes, I ended up here while looking for something else. I was going to take on the SLC worker, in a classic SLC vs LEA fight. However, Shooting Stars is on this evening...
  • lukesan244
    lukesan244 Posts: 3 Newbie
    Good Stuff, thanks everyone!
  • furley
    furley Posts: 22 Forumite
    Happy New Year all..............

    A question for the pundits: I semi-understood why taking out the Student Loan was a logical and beneficial step in that the interest charged was low and, with savings, one could often earn more than the loan interest charged. Hasn't this all gotten turned on its head? In the past several weeks interest to be gained from any savings has been repeatedly cut and is nearly negligible and running at par or less than inflation.

    And what if we start entering a period of deflation?? Will the student loans still be a sensible step or become a necessary evil best avoided if possible?

    Your views please.

    Thanks in advance.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    For 2 years of losing out to 8 years of gaining.... I know what I would choose.

    Also Student Loan can never be more than 1% higher than base rate, so at the moment its 3% and my ISAs are still above this.
This discussion has been closed.
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