Student Loan Query

sabelu

My wife and I may be seperating shortly and we have one son going in to his third year at Uni and another starting his 1st. We are obviously at this time thinking of making the new loan applications. I have no doubt finances will be amicable however having two mortgages bills etc for two properties will put a strain on our ability to support them. For the purposes of the applications should we split the boys between the two of us or be joint applicants? Will the boys be better off or worse off?

Broke_Student

Hi. This is the student finance site if it helps: http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/index.htm

Generally, both of your sons should be better off if you seperate first. This is because the maintenance loans and grants are based on your household income. It does not matter whether you split the boys between you or both live with one parents - what matters is the overall household income. Financially, it makes most sense to keep both boys with the lower earning parent.

The system for student finance has changed recently. I think your eldest son is in the old system and the younger one will be in the new system. Their finance entitlements will therefore be affected differently. This leaflet explains what both are entitled to (based on household income): http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/documents/digitalasset/dg_10034918.pdf

If they have already sent off their forms, they will need to file a 'change of circumstance' (not sure where to get that form but the website should cover that).

sabelu

My wife is over the minimum threshold but is the lowest earner will she get it proportionate?

Oldernotwiser

What do you mean? Your wife doesn't get anything and why are you applying for a loan?

sabelu

Oldernotwiser wrote: »

What do you mean? Your wife doesn't get anything and why are you applying for a loan?

Not with you my wife doesnt get anything? It states we are applying for our sons student loans and the debate was about whether it would be better to have one sponsoring adult on the application rather than two as our circumstances may change very shortly.

Oldernotwiser

You said;
"My wife is over the minimum threshold but is the lowest earner will she get it proportionate?". What is the "it" you're referring to?

The point I'm making is that it's your son who's applying for the loan; it's in his name, it's his responsibility to repay it and when he has it you are not able to discuss it with SLC. I'm sorry but you don't seem to have a very clear view of how the system works.

alias7

Oldernotwiser - He is trying to say his wife is the lowest earner out of him and his wife, but his wife earns over the £30,000 threshold which then starts to effect how much money his son will get from the student loans company.

Sabelu - Its better to do it seperated. My parents are seperated and I live with my mother. She only works part time so she was under the threshold, and I qualified for a £1000 grant because she was a single parent.

Whatever the circumstances, it would be more beneficial for your son if he applied with his parents as seperated.

Oldernotwiser

Thank you Alias7; I understand the way it works, just not sure that Sabelu does!

sabelu

alias7 wrote: »

Oldernotwiser - He is trying to say his wife is the lowest earner out of him and his wife, but his wife earns over the £30,000 threshold which then starts to effect how much money his son will get from the student loans company.

Sabelu - Its better to do it seperated. My parents are seperated and I live with my mother. She only works part time so she was under the threshold, and I qualified for a £1000 grant because she was a single parent.

Whatever the circumstances, it would be more beneficial for your son if he applied with his parents as seperated.

After reading the documentation thought the threshold was £17.5k she earns just over 20k.

sabelu

Is it best as my wife earns around 20k to apply in her name only income assessed or non income assessed this is for two children.

Oldernotwiser

Sorry to repeat myself but it's your son who's applying for funding, not you or your wife. If you and your wife separate, with which of you will your sons make their home? You can't just choose which parent's income is relevant. If your children will live with you normally then it's your income that needs to be entered on the form for assessment; if they'll be living with their mother then it's her income that needs to be put down on the form. I imagine that you have discussed where your sons will live when you separate; this decision will answer your question.