Student Loan 2015 Discussion

setmefree2

Maximum Maintenance Grants for students with low income parents attending full-time courses will be increased in line with inflation.

http://7thspace.com/headlines/407483/uk_higher_education_student_finance_arrangements_confirmed_for_the_201314_academic_year.html

http://www.thisislondon.co.uk/news/education/university-tuition-fees-for-next-year-will-be-frozen-at-9000-7545455.html

http://www.egovmonitor.com/node/47744

Chris008

[FONT=&quot]I am burning with indignation at the injustice of the unfair overseas thresholds for loan repayments. Thresholds outside of Europe are almost always way below the threshold for the UK, even thought the cost of living is as much or more than the UK in some places (the gulf states,North East Asia, for example).£3000 for Monaco, the Bahamas and the Cayman Islands? What planet are these people on? [/FONT]
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[FONT=&quot]A possible justification for these outrageously low thresholds is that, if one is a resident in some countries one doesn’t pay tax. But what about non-residents who do have to pay tax? One has to be out of the UK for at least six months before one is counted as a non-resident in the UK and therefore not liable to UK taxes. The SLC, however, applies their overseas thresholds to anyone who works abroad for longer than three months. Thus if, as myself, one works abroad on short four-month contracts one must pay UK tax AND pay one’s loan back at a higher rate. How can this be fair? [/FONT]
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In the UK if you earn under £15,000 in a tax year, you don't have to pay the SLC anything and are entitled to a refund if you do. If you work abroad, however, you are not entitled to any refund on your earnings-even if your earnings, over the course of a tax year, are much less than the threshold for that country (This is what I was told by a 'Senior Complaint Advisor at SLC anyhow).

I started a contract in Kuwait in April (one of the most expensive places to live in the world, although the threshold for this country is a mere £9,000), worked for 4 months, earnt £8, 800, returned to UK and have been unemployed since then (i.e for almost all of the tax year). This means I owe the SLC approx. £530 (I pay tax by self-assessment) even though my earnings are under the threshold for the UK AND Kuwait. How is this fair? I have actually been in the UK for much longer than I was in Kuwait. This, however, is apparently irrelevant. So is the fact that I'm expected to fork out this money when I've been trying to get by on virtually nothing for the last eight months.

When I contacted the SLC about the unfairness of this I just got a 'rules is rules' response. How can it be fair that people working abroad should be discriminated against in this way? I can't see any justification for it. Strikes me that the SLC are using the overseas thresholds as a sneaky way to squeeze more money out of people. Who, when they are signing up for a student loan, thinks to look at the overseas thresholds (who would even know they were going to be working abroad)? Why should the terms and conditions be different for those working abroad (especially if they are paying taxes back in the UK)?

The problem is, I think, that this doesn't affect enough people so nothing is said or done. (How many of you have worked in Kuwait, for example?)

I would have thought that, in a time of recession, one would be encouraged to seek work wherever one can find it, even if this means going abroad. Under the current system it seems, you are punished for working abroad. One would almost be better off staying in England and living off benefits.

Is there anything I can do to address (what I believe to be) these blatant wrongs? (I'm I even posting this in the right forum?)

Thanks,
Chris
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Taiko

Should've read the contract you signed before taking out the loans, perhaps?

LackingWherewithal

Hi,
I'm having difficulty finding out the threshold for maintence loan when there are more than one student in the family at university. SFE only appears to publish general info. Does the sliding scale for residual family income (25k - 42.6k) double for a second child at university or does SFE apply some other formula?
Thanks
LackingWherewithal

Chris008

Taiko: How insightful and helpful of you! You saying you knew about the overseas thresholds when you took out a loan (if you took out a student loan that is)? Given that I'm not rich, taking out a loan with the SLC was my only option if I wanted to go to university. Does this entitle the SLC to extort money from me? You think the terms for those who go overseas are fair?

devildog

LackingWherewithal wrote: »

Hi,
I'm having difficulty finding out the threshold for maintence loan when there are more than one student in the family at university. SFE only appears to publish general info. Does the sliding scale for residual family income (25k - 42.6k) double for a second child at university or does SFE apply some other formula?
Thanks
LackingWherewithal

The threshold for maintenance loans doesn't change when you have more than one student in the family at Uni(if only it did double ) What they have done in previous years is take the residual family income and for every extra student at uni deduct £1,130 from that total and then work out loan/grant entitlements from that.
I believe that for this next year the amount deducted per extra student continues to be £1130.

LackingWherewithal

Thanks Devildog,
Obviously t'was pure fantasy to consider that the threshold might rise significantly. Still, £1130 probably represents the amount of grub a young person would consume in a year if they remained at home...
Cheers
LackingWherewithal

Taiko

Chris008 wrote: »

Taiko: How insightful and helpful of you! You saying you knew about the overseas thresholds when you took out a loan (if you took out a student loan that is)? Given that I'm not rich, taking out a loan with the SLC was my only option if I wanted to go to university. Does this entitle the SLC to extort money from me? You think the terms for those who go overseas are fair?

As the thresholds are published, and have not been edited for many years, chances are yes I'd have known about them.

Chris008

"As the thresholds are published, and have not been edited for many years, chances are yes I'd have known about them".


Well, you would have been one of the very few. (Not that I'm convinced). But knowing about the thresholds doesn't make them fair-are you saying it does? Given that many of us have no choice but to take out a loan with the SLC if we want to go to university does this entitle the SLC to rip us off? Ought we just sit back and do nothing when they do?

To be honest I don't really know what your point is. Sorry. It seems to me that you are just being a smug twot (My apologies if I have misconstrued you). In what way are your remarks helpful?

Taiko

The overseas thresholds are determined by that nations average income. Kuwait had a low average, hence repayments start lower. Much like in the UK, it's based on what you earn rather than costs.

You had chance to research this beforehand though. The SLC didn't force you to take that loan, you could've tried obtaining funding by other means.