PDF Parents' Guide To Student Finance 2010/11 discussion

MrsManda

brambram wrote: »

hello
I had a student loan of 1000 in 1995, the guy told me I needed my parents signature in order to recieve it.
later on I found this was a lie, in fact if you are an independent student living away from home, or estranged from your familly parental support is not always possible. you are led to believe getting parental support will benefit your application. All they are doing is getting guarantors for the loans, parents. I dont know if it still goes on I have looked at the student loan application process and get to a support for your application page. havent been into it any further as
I said its a long time since I had a loan.
technically I would think its not always possible to have support for an application for a loan then what happens?

If you've not had a loan since 1995 why are you posting about it on here? Are you applying again/repaying?

If you're talking about an official student loan via the student loan company then there's no such thing as a guarantor. The student signs the contract and is solely responsible for the repayments.

The only time your parents are asked to provide financial information on the application form is if you are classed as a dependent student and want to be income-assessed. If you don't want to be income assessed (and thus only receive the minimum loan) or are counted as an independent student your parents don't need to provide information.

Your parents providing financial information is purely for assessment purposes, they are not guarantors and if the student default on repayments parents are not involved.

(at least this is the case now and has been since at least 2000, don't know about earlier but I presume it was the same)

brambram

hello
thanks for your reply, I was just questioning the whole parent/income assesment (why) unless there is a comeback to the parents. I get to a support your childs application page on the website, do you need to support your childs application therefor becoming a guarantor? Is 'support' a diplomatic term for guarantor? If so then is there a loophole by making your child independent ie move out while at uni.
yes - I think there was a statement on my application which said guarantors signature.

MrsManda

brambram wrote: »

hello
thanks for your reply, I was just questioning the whole parent/income assesment (why) unless there is a comeback to the parents. I get to a support your childs application page on the website, do you need to support your childs application therefor becoming a guarantor?
Is 'support' a diplomatic term for guarantor? If so then is there a loophole by making your child independent ie move out while at uni.
yes - I think there was a statement on my application which said guarantors signature.

There are two parts to student finance: non-income assessed, and income assessed. Everyone eligible for student finance receives ~72% of the maximum maintanence loan (+ 100% of the applicable tuition fee loan), this is non-income assessed.

The rest of the maintanence loan (and any maintanence grants) is means tested. If you are classed as a dependent student the income which is assessed is your parents hence the parents needing to provide their income information. This doesn't mean the parents have to contribute financially towards their child's maintanence nor does it mean that they are responsible for the loans the student takes out.

There isn't the loophole you mentioned - most students move out of their parents home when they go to university.
In order to be classed as an independent student and therefore not be assessed on their parents income the student has to meet certain criteria, for example:
Be over 25yrs at the start of the academic year or
Be or have previously been married/in a civil partnership or
Have children or
Have supported themselves for at least 3 years prior to the start of academic year or
Have no living parents or
Be permanently estranged from their parents

If you're classed as an independent student you are not assessed on your parents income but if you married/living with a partner then their income is taken into account.

It may help you to read the information on the role as a parent/partner of a student:
http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/Parentsandpartners/DG_171587

Scooby64

Taiko wrote: »

I've offered to write a guide for everything, covering current system students and with the new fees once I've seen the information, however my offer was declined.

Hmmmm.... perhaps Martin in his new role as Government mouth piece wants to be sure that the information is spun/presented in a way which they would aprove.

I think it is a very worrying development that Martin is skewing the presentation in this way. Specifically:

1. If very few of these loans are going to get paid off and will be written off after 30 years, why is Martin not highlighting that this just creates a bigger hole in 30 years time for our children to repay?

2. Since 9% of all earnings over 21K will be taken to repay student loans, it is entirely likely that a graduate teacher will be paying a higher rate of tax than their boss. Basic rate of tax at 20% will have a top slice of 29% (almost an extra 50% on the tax rate) for graduates earning £21K (below the national average wage)?

3. The justification for these extra fees has always been that graduates will earn £100K more over their working lives. Since they will now repay more than this over their working lives, why (from a financial perspective) isn't Martin advising kids NOT to go to college if they have any other route into employment?

4. It is nonsense to say that student loans will not effect your ability to get a mortgage. Martin chooses his words carefully when he says (correctly) that it is not a debt in the traditional sense so will not go in your credit file, but even now, lenders ask about regular financial committments to work out an applicant's disposable income to determine if a loan is affordable. A graduate couple will have their borrowing power reduced considerably

Scooby64

Re point number 1 above, Moodys have today released a report
Moody's Analytics Warns Student Loans May Be The Next Financial Bubble To Burst

http://www.huffingtonpost.com/2011/08/09/moodys-student-loans-bubble-burst_n_922646.html


If it wasn't such a bad situation - I'd be saying "I told you so!" :mad: - Still think it's a good scheme ML? :rotfl:

Scooby64

From the BBC today:

"For students in England, the projected average is £59,100, with the difference largely due to the fact that Scottish students do not have to pay tuition fees and increases for Welsh students' will be covered by government subsidies."

If this week has taught us anything it is that when a group or society believe that they are being treated unfairly, it is SOCIETY that will ultimately pick up the cost. We can argue over disadvantaged youth, but can Martin (or anyone else) justify why English students should carry a debt the Scottish & Welsh students don't??

http://www.bbc.co.uk/news/education-14488312

Savvy_Sue

RicH wrote: »

Our younger son will be starting university in September 2011. We are a married couple aged 61. I am in full employment on a modest public service salary and my wife has this year started receiving her pension, having not been working for some time.

Will the assessment we have been given for student maintenance grant and loan have taken account of the pension as income ?

Whilst grateful for the financial assistance given, we are alarmed that this finance will only cover accommodation costs, leaving nothing at all for food.

Your advice and comments would be welcome.

Thanks

Welcome Ric.

It might be worth sending a PM (Personal Message) to Dalkirst who's the Board Guide here, asking them to merge your thread into this one. Also reading that thread might give you some idea of the answer. If the pension had to be declared, I'm thinking it will have been counted as income. And the situation you describe is not uncommon: which is why many students get part-time jobs.

However it is worth checking whether there are any bursaries available from the University - there was a box to tick on the forms, I believe, which should have helped with this, but there is no harm in asking. They're given in a variety of situations: good results, first generation to go to Uni, local students etc.

charlieandthechickens

Hi All

My first time of posting!

My 16 year old son has just been offered a Higher Diploma at a college which is obviously great. However at 16 he is not entitled to any loans as he is not old enough - the cost of the course is £5k+ not taking into account accomodation etc (College in London to make matters worse!) :eek: As he is not taking a standard Diploma expected of him at his age it is not paid for as you would normally expect for a 16 year old. Unfortunately he has missed out on scolarships as he has only just been offered the position.
It seems he is being penalised for having worked hard, if he had been a drop out with a couple of kids the government would be throwing money at him :mad:
I have searched on the internet and spoken to student finance who were as much use as a chocolate teapot and cannot find anything that could help with his funding.
Has anyone been in a similar position? or can anyone please help?
Many Thanks
Sue

Lokolo

charlieandthechickens wrote: »

Hi All

My first time of posting!

My 16 year old son has just been offered a Higher Diploma at a college which is obviously great. However at 16 he is not entitled to any loans as he is not old enough - the cost of the course is £5k+ not taking into account accomodation etc (College in London to make matters worse!) :eek: As he is not taking a standard Diploma expected of him at his age it is not paid for as you would normally expect for a 16 year old. Unfortunately he has missed out on scolarships as he has only just been offered the position.
It seems he is being penalised for having worked hard, if he had been a drop out with a couple of kids the government would be throwing money at him :mad:
I have searched on the internet and spoken to student finance who were as much use as a chocolate teapot and cannot find anything that could help with his funding.
Has anyone been in a similar position? or can anyone please help?
Many Thanks
Sue

Unfortunately for those sort of courses you are expected to pay. Is it something to do with Arts? (music, drama etc?)

Can you link the actual course?

charlieandthechickens

Lokolo wrote: »

Unfortunately for those sort of courses you are expected to pay. Is it something to do with Arts? (music, drama etc?)

Can you link the actual course?

Hi Lokolo,
Thanks for reply. Yes it's a Higher Diploma in music - he's a drummer. The course is at ICMS

P.s I can spell scholarships!! It was a typo!!