Parent supporting a student finance application

july6768

Hi, I recently saw Martins' special on student finance, which he explained to a mother of a 22 year girl wanting to go to Uni. He very clearly explained how the system is set up to allow her mother not to have to take out a loan to pay the costs as she should be able to be independent at 22. As parents supporting our 21 year old daughters application her grant/loan has been significantly reduced this year due to our income increases (as we were told by the student finance helpline) When asked what would happen if we didn't support her application. We were told she would just lose that element of her loan leaving her with even less money! As under their system students are classed as "dependents" until the age of 25!!!! Its not that we don't want to support her, she wants to be independent.

I wondered if anyone else has come up against this issue?

The_Jakal

Hi July, this is always a tricky one.

I believe that the government's official stance is that they "suggest" that parents who earn above the threshold should help their children through university as the standard maintenance loan doesn't cover student costs.

I guess that they cannot force parents to give their children money as some earn above the threshold but have managed their money poorly (eg high mortgages, loan repayments, overspending) which is why they only "suggest" it.

So, their argument would be that you use some of your earnings increases to help her out.

However, if your daughter is keen to be independent then she should look for part-time job opportunities or other ways to supplement the student loan.

There's nothing wrong with receiving help from your parents to pursue an education and a very high number of students rely on it as a source of income.

pandora205

I had the same conversation with Student Finance. My son, who is 21 (nearly 22), has supported himself for the last two years but not three, so he is not classified as independent. He has a place to do a degree starting in September. This means calculations are based on my income, which is above the level where he would get any help.

I asked what would happen if I retired, as I am approaching that age range, but the calculation is made on the previous financial year, so that still wouldn't make a difference despite me 'earning' a much lower amount.

In the end we haven't bothered to apply for any help and he has applied for the full loan. It was either that or wait and apply again. Unfortunately the degree he's doing is putting up their UCAS Tariff next year so that wasn't an attractive option.

Voyager2002

pandora205 wrote: »

I had the same conversation with Student Finance. My son, who is 21 (nearly 22), has supported himself for the last two years but not three, so he is not classified as independent. He has a place to do a degree starting in September. This means calculations are based on my income, which is above the level where he would get any help.

I asked what would happen if I retired, as I am approaching that age range, but the calculation is made on the previous financial year, so that still wouldn't make a difference despite me 'earning' a much lower amount.

In the end we haven't bothered to apply for any help and he has applied for the full loan. It was either that or wait and apply again. Unfortunately the degree he's doing is putting up their UCAS Tariff next year so that wasn't an attractive option.

As a matter of fact, if you were to retire so that your income changed by at least 15 per cent, you could then request a "current year assessment". They would then calculate his loan and grant based on your new income.

pandora205

Voyager2002 wrote: »

As a matter of fact, if you were to retire so that your income changed by at least 15 per cent, you could then request a "current year assessment". They would then calculate his loan and grant based on your new income.

That's useful to know and quite tempting. Shame I like my job and really want to carry on for a few more years! I'll bear it in mind on a bad week though... thanks

NervousHomeowner

I also have this problem. I am 20 and have been financially independent & living away from my mum for 2 years. I live with my partner and we are not married. When I first called student finance and explained everything, they said I could just base my income assessment on his income (He is older than me by a few years & works full time) so I was really surprised when I was actually informed that because I'm under 25 & haven't been financially independent for 3 years, that only my mum could support my application! Even though she doesn't live anywhere near me and hasn't helped me out financially for 2 years now. My boyfriend, on the other hand, relies on me financially & provides for me, yet his income can't be factored into it. It's ridiculous!

My friend has had the same problem, only it has really screwed her over. She lives with her boyfriend and has been financially independent for over 3 years but because she didn't earn over £7,000 a year & is under 25 & not married to her boyfriend, she wasn't entitled to the full maintenance grant & loan. However, she has no contact with her family so has no one to support her application. Her boyfriend offered but because they aren't married & are under 25, he isn't allowed. His parents offered too (She lives with them) but that wasn't allowed either. When she asked what to do, she was told to get 'proof' that she had no contact with her family. How do you even prove that?! Again, it was absolutely ridiculous.

Honestly, after having applied this year, I am totally disillusioned with the whole process. It seems that everything is set up for people who have 'typical' family lives and if you deviate slightly from what is expected, you are screwed over for it

The_Jakal

NervousHomeowner wrote: »

I also have this problem. I am 20 and have been financially independent & living away from my mum for 2 years. I live with my partner and we are not married. When I first called student finance and explained everything, they said I could just base my income assessment on his income (He is older than me by a few years & works full time) so I was really surprised when I was actually informed that because I'm under 25 & haven't been financially independent for 3 years, that only my mum could support my application! Even though she doesn't live anywhere near me and hasn't helped me out financially for 2 years now. My boyfriend, on the other hand, relies on me financially & provides for me, yet his income can't be factored into it. It's ridiculous!

My friend has had the same problem, only it has really screwed her over. She lives with her boyfriend and has been financially independent for over 3 years but because she didn't earn over £7,000 a year & is under 25 & not married to her boyfriend, she wasn't entitled to the full maintenance grant & loan. However, she has no contact with her family so has no one to support her application. Her boyfriend offered but because they aren't married & are under 25, he isn't allowed. His parents offered too (She lives with them) but that wasn't allowed either. When she asked what to do, she was told to get 'proof' that she had no contact with her family. How do you even prove that?! Again, it was absolutely ridiculous.

Honestly, after having applied this year, I am totally disillusioned with the whole process. It seems that everything is set up for people who have 'typical' family lives and if you deviate slightly from what is expected, you are screwed over for it

It is a shame that it's this way but from their point of view they have probably been stung in the past by people trying to "play" the system.

They obviously still have a problem with people whose parents are self-employed too because they just put their "salary" as below the threshold and take the rest in expenses.

I am surprised that they aren't able to deal better with niche cases like yours though!

Voyager2002

NervousHomeowner wrote: »

I also have this problem. I am 20 and have been financially independent & living away from my mum for 2 years. I live with my partner and we are not married. When I first called student finance and explained everything, they said I could just base my income assessment on his income (He is older than me by a few years & works full time) so I was really surprised when I was actually informed that because I'm under 25 & haven't been financially independent for 3 years, that only my mum could support my application! Even though she doesn't live anywhere near me and hasn't helped me out financially for 2 years now. My boyfriend, on the other hand, relies on me financially & provides for me, yet his income can't be factored into it. It's ridiculous!

My friend has had the same problem, only it has really screwed her over. She lives with her boyfriend and has been financially independent for over 3 years but because she didn't earn over £7,000 a year & is under 25 & not married to her boyfriend, she wasn't entitled to the full maintenance grant & loan. However, she has no contact with her family so has no one to support her application. Her boyfriend offered but because they aren't married & are under 25, he isn't allowed. His parents offered too (She lives with them) but that wasn't allowed either. When she asked what to do, she was told to get 'proof' that she had no contact with her family. How do you even prove that?! Again, it was absolutely ridiculous.

Honestly, after having applied this year, I am totally disillusioned with the whole process. It seems that everything is set up for people who have 'typical' family lives and if you deviate slightly from what is expected, you are screwed over for it

These kinds of cases can be resolved, with a little bit of effort. For a start, if you want to be assessed on the basis of your partner's income, there is nothing stopping you from getting married. As for your friend, she should ask a solicitor: probably a statutory declaration would be all that is needed.