Student Loan 2015 Discussion

LackingWherewithal

Thanks devildog and monxton,
It's evident that the 65% is the absolute limit to the maintenance loan if parental income is unassessed, so now it's just a matter of crunching the numbers in the student finance calculator (with the £1130 correction) to work out which way to play it.
Thanks again...
LackingWherewithal

devildog

Something else you may have to factor in is that you have a student on the old system and students going onto the new system(?) Haven't really looked into the different entitlements for the new cohorts as opposed to the old ones(or how they are assessed but I believe it is different now to previously so they may well end up receiving different amounts

gloucesteroldspot

My brain hurts. I have been trying to decide whether my daughter should apply for the non-family income assessed student maintenance loan at 65% of the maximum, or the income assessed version. There must be a 'tipping point' of parental income where the 65% option is the better choice but I have been unable to work it out exactly, although it looks to be somewhere between £50 and £60,000 per annum.

Is there a simple scale or table anywhere that shows this?

On the whole I would rather not have to get involved with the Student Loan Company, which in my previous experience has been one of the the most disastrously incompetent companies I have ever dealt with, but if having our income assessed gets her an extra few bob to live on it may be worth it.

Forgive me if this has been answered before, but I can't find the information, and if anyone has the answer I'd be very grateful.

monxton

gloucesteroldspot wrote: »

My brain hurts. I have been trying to decide whether my daughter should apply for the non-family income assessed student maintenance loan at 65% of the maximum, or the income assessed version. There must be a 'tipping point' of parental income where the 65% option is the better choice but I have been unable to work it out exactly, although it looks to be somewhere between £50 and £60,000 per annum.

The cut-off is £62,500 if your daughter is studying outside London, or £69,745 if she is studying in London. That is based on what they call the "Residual Household Income", which won't be exactly the same as your actual income, because they take other factors into account, for example other dependents. However if you are around that point, then the loan only starts to increase gradually, so you could be doing all that form-filling for the sake of £50.

Apart from the misery of filling in all the forms, there is nothing to lose by doing so - if all she is entitled to is the 65%, then they will just say so.

gloucesteroldspot

Thanks Monxton. So to recap, applicants get 65% regardless of parental income?

monxton

gloucesteroldspot wrote: »

So to recap, applicants get 65% regardless of parental income?

See charts forums.moneysavingexpert.com/showpost.php?p=52026049&postcount=25 (outside London) and forums.moneysavingexpert.com/showpost.php?p=52026061&postcount=26 (in London)

(Sorry I can't post the links but I am apparently not sufficiently trustworthy)

monxton

My trustworthiness has just crossed the threshold! :j

See charts for outside London and for in London.

gadgetmind

monxton wrote: »

That is based on what they call the "Residual Household Income", which won't be exactly the same as your actual income

Is that figure after salary sacrifice, tax, and NI?

Daughter has just had an offer for her chosen subject (medicine) and we need to decide whether she should bother applying for loans or just pay-as-we-go.

Now they've said that there won't be repayment penalties, I'm starting to think that taking out maximum loans but investing alongside in relatively conservative ISAs in her name might be best.

Lokolo

gadgetmind wrote: »

Is that figure after salary sacrifice, tax, and NI?

Daughter has just had an offer for her chosen subject (medicine) and we need to decide whether she should bother applying for loans or just pay-as-we-go.

Now they've said that there won't be repayment penalties, I'm starting to think that taking out maximum loans but investing alongside in relatively conservative ISAs in her name might be best.

http://www.studentfinance.direct.gov.uk/portal/page?_pageid=153,4680136&_dad=portal&_schema=PORTAL

Try the calculator.

And PAYG, you won't need to fees fully upfront. They usually take them around Christmas in one part, then Easter the next.

gadgetmind

Lokolo wrote: »

http://www.studentfinance.direct.gov.uk/portal/page?_pageid=153,4680136&_dad=portal&_schema=PORTAL

Try the calculator.

Thanks, but I created my own with rather more bells and whistles.

It says that no loan is best but there is always the risk that she won't be able to take the pressure of medical training and the loan derisks things a little.