Student Loan 2015 Discussion

SKOL_2

Hi I new on here, so if I have it wrong I am sorry!

I run a small business and now my daughter is 18 I want to give her some shares - which will give her a dividend of about £5k each year. Before I do I want to be sure I am not making her worse off as a new student in September 2013.

Has anyone been down this road already, what is best for me to do for her?

Many thanks,

Skol

britbabe

Hi, my daughter has been accepted at American Academy of Dramatic Arts in L.A. Can she get a student loan here to help pay her fees and a grant for living expenses? I have been told no by the banks, however I noticed the grants section in your newsletter and it mentioned students studying overseas. Many thanks

devildog

britbabe wrote: »

Hi, my daughter has been accepted at American Academy of Dramatic Arts in L.A. Can she get a student loan here to help pay her fees and a grant for living expenses? I have been told no by the banks, however I noticed the grants section in your newsletter and it mentioned students studying overseas. Many thanks

I don't 'think' so.
Usually when referring to students overseas it means those that study at Uni here but during the course of the degree spend some time abroad as part of that degree (such as language courses)

BACKFRMTHEEDGE

The Treasury is quietly re-examining the £9,000-a-year tuition fee system because officials believe it is “financially unsustainable”. The trebling of fees led to demonstrations and a crisis in the coalition, but Whitehall is now understood to be concerned that almost 40% of the money lent to students by the taxpayer to pay for their courses will never be repaid.
The crisis has been caused in part by concessions made to help Nick Clegg, the deputy prime minister, secure the agreement of rebellious Liberal Democrat backbenchers. These included a reduction in the repayments that low-income graduates will be required to make.
The fall in student numbers has also been far smaller than expected, so more loans are having to be paid out than the Treasury had forecast.
The fear is that far from saving the treasury money, the cost to the public purse may go up

http://www.thesundaytimes.co.uk/sto/news/uk_news/Education/article1248867.ece?CMP=OTH-gnws-standard-2013_04_20

Four in ten students may default on their loans: Treasury fear funding system is unsustainable

http://www.dailymail.co.uk/news/article-2312702/Four-students-default-loans-Treasury-fear-funding-unsustainable.html?ito=feeds-newsxml

Dunroamin

BACKFRMTHEEDGE wrote: »

http://www.thesundaytimes.co.uk/sto/news/uk_news/Education/article1248867.ece?CMP=OTH-gnws-standard-2013_04_20

http://www.dailymail.co.uk/news/article-2312702/Four-students-default-loans-Treasury-fear-funding-unsustainable.html?ito=feeds-newsxml

The DM obviously doesn't understand student loans if it considers not repaying them because of income is a default.

Paschal_2

Does the new system includes the European students too?
For exemple a greek person can take that loan with the same rules?

pjala

Just to add, there have been various questions about whether the student loan is calculated before or after pension deductions have been taken from your wage.
My issue is that if it is before pension payments are removed, it discourages paying into a pension and contradicts current tax arrangements around pensions.

Up until now, I have not been able to find anything at all about this - except for Martins assertion in Part 4 of his Student Loans Mythbusting article. He says "Student loan repayments should be based on your income AFTER pension contributions have been deducted."
Now I hate the word should, it seems like a get out for someone who does not understand what "will" happen, and perhaps the assertion ought to illustrate a lack of understanding of what will happen, rather than asserting quite manipulatively that it "should" happen. Should is not Will.

Anyway, on the HMRC web site, it says:
"Under Pay as You Earn (PAYE) student loan deductions should only be made from income that attracts secondary National Insurance contributions (NIC)"

The link is http://www.hmrc.gov.uk/students/occupational-pens.htm

I think this means that if you are contracted out of NIC under PAYE final salary pension schemes, your pension will be taken into account. Under the new pension arrangements, final salary pension schemes cannot contract out.

This means pension would be taken into account if you are in a PAYE scheme now, but by the time you pay back your loan there will only be one type of NIC contribution so your pension will NOT be taken into account.

Hence I think the Martin article is WRONG, and gives a very misleading account of how the loan payments are worked out. If I am wrong, the article needs to cite WHERE it is getting its information from, because I am damned if I can find any.

It kind of makes you think the whole thing has not been really thought out properly.

angelsmomma

I want to do an open university, open degree course. I am unsure about what I should do in regard of the fees and any grants or loans I may be able to get. I have had a look at the ou information but am confused by it to be honest.

I am a single mother of a 12 year old and in my 50's. I still have over 10 years until retirement under the new pension rules and the way things are going by the time I get to 66 it will have been raised again so I see a degree as a way of giving me more chance in the job market.

Thank you for any help in advance.

Edit: I left school at 15 so do not have any qualifications

slopata

There are also a huge number of grants and scholarships available for students - some for the most unusual things. Take a look at The Scholarship Hub UK website which my daughter told me about.

Dunroamin

angelsmomma wrote: »

I want to do an open university, open degree course. I am unsure about what I should do in regard of the fees and any grants or loans I may be able to get. I have had a look at the ou information but am confused by it to be honest.

I am a single mother of a 12 year old and in my 50's. I still have over 10 years until retirement under the new pension rules and the way things are going by the time I get to 66 it will have been raised again so I see a degree as a way of giving me more chance in the job market.

Thank you for any help in advance.

Edit: I left school at 15 so do not have any qualifications

You can take out Student Loans to pay OU fees but you have to support yourself by working or benefits. You don't need any entrance qualifications but you might want to look at the Openings courses if you want to start gently.

What are you planning to study?