How do the LA work out means tested part of student loan?

kelloggs36

We are confused. My DD has just been told that her grant has been withdrawn, and that she is now expected to live on £1021 less - which is impossible for her as she was already struggling and now doesn't know what to do!!

Does anybody know how the LA work out the thresholds for assessing for the other 25% via loan (rather than grant) - as all students get 75% of the loan, but the rest is means tested. As our income is nowhere near the top end of the thresholds quoted, I can't see why she doesn't get a full loan. We cannot help her financially and she hasn't got a job (she keeps looking, has interviews but doesn't get the job). Her university said that they can't help her - she is very close to quitting the course as she can't pay her rent. What else can she do if the LA decide that she isn't getting any more?

Taiko

If he began in 2008 and was on the new set of regulations (no previous study, on £60,005 threshold) then the means tested part of the loan is reduced by £1 for each complete £9.50 of household income above £61,061.

If it's one of the old regulation students, it's reduced £1 for every £9.50 of hosuehold income above £39,780.

What were the reasons the grant were withdrawn though? I work for an LEA, and the only reason to withdraw the grant is if it comes to light that a student has transferred courses and no longer remains eligible, or the estimates provided by parents of their income weren't accurate.

kelloggs36

I don't know the reason!! She started the course in 2007 and is now in her second year. I have found out that the income used in the assessment was just over 9k UNDER the threshold (which is correct) so I can't see why the grant has been disallowed and withdrawn!!! She hasn't switched courses. The LA originally worked it out at 75% of the loan and then when DD queried it, they told her it was wrong and that she would have to complete a change of circumstances form (even though there was no change of circumstances, the LA had not read that she wanted to apply for a means tested part of loan and/or grant. So she did that, and was awarded the grant. They have reviewed it and now decided she doesn't qualify!!!! I am wondering if they have incorrectly got her down as living at home????? She lives at the other end of the country!

kelloggs36

Oh, and we got 2 letters today - one stating that we hadn't supplied the required info and the other saying '#thank you for providing the information we have now completed the assessment". Confused? Yes, as the letter saying they had GOT all the info and had assessed was dated BEFORE the letter which said we hadn't provided the info!!!

Lokolo

Ring them up and find out?

A person might (I said might) be able to give you better information than a printed letter.

kelloggs36

I did and they said that it looked wrong but couldn't say what had happened!

Lokolo

kelloggs36 wrote: »

I did and they said that it looked wrong but couldn't say what had happened!

The technical term is 'System **** up'

kelloggs36

lol!!! I should have guessed really - nothing from Govt departments, either cental or local EVER go right!!

Taiko

Sounds a little bit like you had either the random sample check letters, which were sent start of December, or you were provisionally assessed first time around. Either of those would result in a reassessment at this time of year.

The only other thing I could think that would make an LEA carry out a reassessment to take away a grant is if a university notify a change in circumstances. Either way, it doesn't just happen because an assessor is bored at this time of year.

Masomnia

I'd ring your LEA. We had something similar with my application this year. Waited months and months, kept ringing and all they said was keep waiting. Eventually they told us that we hadn't provided income details for my mum... which of course we had, after telling them again it got sorted.

cant_think_of_a_name_3

Every £1 of grant reduces the loan by a £ up to a maximum reduction of about £1230 off the loan. So, if she had her grant removed, the loan should have gone up.
You said she started last year. Check last year's assessment and see how they compare. If your financial circs are similar, the correct assessment should be similar.

I can think of a few possible causes. Do any of the following apply:
--Did she withdraw last year and start a new course this year? (thresholds would differ in this case)

--Have you recently started living with a partner? (partner's income would need to be taken into account as well as your own)

--Has she previously attended any other courses? (prev study could affect eligibility)

If it's none of them & you just got a letter stating that you didn't submit evidence it could be that they didn't get your evidence in time (or did have but didn't realise they had it). They could have removed the income-assessed bit of support because they presumed you had ignored the request for evidence. But it sounds like they've got it so they may have reinstated the support since that letter.

Give your LEA call (use 'find my LEA link' on www.studentfinancedirect.co.uk ).

If it's none of the above the only other option would be that your actual earnings were higher than you had declared on the initial application & it has been reassessed. I am not suggesting you lied in any way but you/your LEA could have made an error either on the initial application or eg keying in your p60 figure wrong.


Hope some of the above helps. I am well aware of most of the regs having being one of the sworn enemies at the LEA. You may not realise it but most of these people (certainly the ones I used to work with) absolutely work their a**es off to help & will do their best to help you if you give them a call.