Unusual Student Finance Question For Mature Student!

Ladyshopper

I will try and keep this as brief as possible, but just wondered if there was any experts about at all who could advise what best to do.....

I am (hopefully) doing a 1 year BA top up course starting September. It is classed as full time course, but I have a job and will be continuing with this whilst studying. P60 amount for this year was £23900, expect this figure to be the same next year. I am a lone parent with 2 children, both teenagers.

I am applying for loan for the fees (£8770)
I am applying for maintenance/special grant
I am NOT appying for maintenance grant

Did student loan application and it told me I would be able to get the maintenance grant of around £3500 (rounding figures for ease) as well as a lone parent grant of around £1500. Neither of these effect tax credits so I'm led to believe.

I should also be able to get free council tax payments for the year, so thats around another £1000 saved.

Assuming I get all of the above (and yes, I am simply working on assumption at the moment) what would be best to do with the grants/saved council tax? Am I best to pay it straight back off the fees loan, thereby reducing that? My wages are likely to stay at this rate for around the next 4 years, then when I go back to full time work figure on p60 would rise to around £30000.

Another option is to pay the money off my mortgage - interest rate of 3.89%, have been overpaying as much as possible to get it down.

I want to do something useful with the money to reduce either of these debts, am not really too hot on how student loan repayments work if you pay a lump sum off or if it is even worth it?

Of course, this could all be academic if I don't get the amounts above, but am just trying to plan for best case/worse case scenario.

Any help/suggestions appreciated with thanks!

Bollotom

You say you will pay no council tax but that as well as the course you are keeping your job. I would be surprised if you can get away with that. I was under the impression that full time students don't pay CT but can't think that you are NOT working when you are. I should query this with the council or you may end up with a big bill later. But best of luck. :cool:

Taiko

If it's designated a full time course, which most top ups are, then completely exempt from council tax.

Personally, I'd pay it off the mortgage. Remember that student loan debt is only repayable if you earn over certain thresholds, and is eventually written off. The mortgage won't be, so I'd overpay that.

Bollotom

Wow! Every day's a school day. My total income is around £19000 a year, though I am retired but pay full council tax of £1100 pa. Does this mean that if I enrol as a full time student I will stop paying council tax? Has to be a catch in it somewhere, lol

Ladyshopper

I did phone the council and check, as I wasn't sure and neither was the university. Council confirmed it didn't matter if I was working, as long as the course is full time, which university have confirmed, I will definitely be exempt.

I definitely earn over the threshold for repayments for student loan. I guess it's weighing up interest rates etc as to whether the loan or mortgage is best to pay off.

Ladyshopper

Bollotom wrote: »

Wow! Every day's a school day. My total income is around £19000 a year, though I am retired but pay full council tax of £1100 pa. Does this mean that if I enrol as a full time student I will stop paying council tax? Has to be a catch in it somewhere, lol

Not sure how old you are (you say retired) but there has been a few articles about pensioners doing degree courses, as they don't usually earn enough to make any repayments!

Bollotom

Ladyshopper wrote: »

Not sure how old you are (you say retired) but there has been a few articles about pensioners doing degree courses, as they don't usually earn enough to make any repayments!

Ha ha. I'm 69. It just seemed I could save over a grand a year if I became a full time student and claimed Council Tax whatever it's called now. I'm so pleased that you are still exempt. Get summat back from this bloody government before they mug us properly. :beer:

cheesemelts

I find society today and attitudes quite scary!

Bollotom

cheesemelts wrote: »

I find society today and attitudes quite scary!

I will not bite, I will not bite, I will.........
:EasterBun