MSE News: Part-time students to get more time before repaying loans

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"Part-time students are to be given an extra year before they become eligible to start repaying tuition fee loans ..."

Read the full story:

Part-time students to get more time before repaying loans

pandora_ann

Part-time students, who make up 40% of all undergraduates, currently do not receive loans for tuition fees or living costs from the Student Loans Company.

Those starting in 2012 will be the first part-timers to get funding, but only for fees, meaning they won't have to pay for their course upfront.

Actually part-time students do already receive funding to cover part of their fees, provided you're studying at least 50% of a full time course. I've received this for the past few years from the Student Loans Company. The difference is that this funding is currently in the form of a grant, not a loan, and is paid directly to the University. The amount of the grant depends on the percentage of the full time course that you're studying (ie, 50% or 75%) and your income for the previous year.

This was all great, however, funding did not increase in line with fees in 2006 which meant that people like me have only received funding to cover half of the fees since the increase. I've had to rely on the Access to Learning Fund to cover the rest of my fees.

It might seem like a sweet deal to have fees covered by a grant but as a part time (mature) student I have no help with living costs so work full time on a low wage whilst trying to fit a lecture schedule into my work schedule. Part time students also don't get any tax breaks. All things considered, if I could do it all again I'd temporarily give up my independence and be a full time student.

mancmum

Thank you for your post. I am very sad that this particular point has not been made more clearly in the publicity around Student Loans. Many people have taken the government line hook line and sinker. For some part time students the pre-2012 arrangements would be better.

Taiko

pandora_ann wrote: »

Actually part-time students do already receive funding to cover part of their fees, provided you're studying at least 50% of a full time course. I've received this for the past few years from the Student Loans Company. The difference is that this funding is currently in the form of a grant, not a loan, and is paid directly to the University. The amount of the grant depends on the percentage of the full time course that you're studying (ie, 50% or 75%) and your income for the previous year.

This was all great, however, funding did not increase in line with fees in 2006 which meant that people like me have only received funding to cover half of the fees since the increase. I've had to rely on the Access to Learning Fund to cover the rest of my fees.

It might seem like a sweet deal to have fees covered by a grant but as a part time (mature) student I have no help with living costs so work full time on a low wage whilst trying to fit a lecture schedule into my work schedule. Part time students also don't get any tax breaks. All things considered, if I could do it all again I'd temporarily give up my independence and be a full time student.

Full time students don't get any tax breaks, btw.

pandora_ann

Taiko wrote: »

Full time students don't get any tax breaks, btw.

Full time students don't pay Council Tax. Also, as a full time student any income from employment would most likely be under the personal allowance for Income Tax.

The current set up with regards to student loans means that loans are meant to cover (some) living costs. I don't believe these loans are counted as income with regards to personal tax allawance, but please do correct me if I'm wrong (really not sure about that one). I don't think it's clear yet if any of the loans under the new set up would cover living costs though.

So, essentialy, full time students do get tax breaks.

amiehall

It's not a tax break! I don't pay tax on loan money received from anyone whether it's bank, government, parents whatever. The government not taxing student loan payments isn't them doing anyone some kind of favour....

pandora_ann

I didn't mean to imply that student loans should be taxed, of course they shouldn't. I know how difficult it can be for both full and part time students and I'm not criticising any tax breaks you do get. I was wanting to point out that part time students are often on a low wage and have to pay that same tax as anyone else working full time so the grant towards university fees was a great help. People often assume the financial situation of part time students is the same as full time students, which isn't the case.

I mentioned the loans as they cover some living expenses meaning you don't necessarily have to work (which is as it should be when studying full time) which is why any income would most likely be below the personal tax allowance.

Not having to pay council tax is a tax break, one I don't begrudge you despite it making it very difficult for me to find shared accommodation in a small University orientated city (most of the rented accommodation here is exclusively for students) as I would be solely liable for a very high rate of council tax.

I'm not criticising students, either full or part time, I'm just saying the financial situation is different for each.