do savings affect a student's eligibility for a student loan.

ktj

Hi,

Due to an inheritance, my daughter is lucky enough to have isa savings of £25,000. She is doing A levels at the moment and is then hoping to go to university. Our household income is less than £20,000 per annum. Can anyone tell me if her savings will affect her eligibility for a student loan to cover tuition fees and maintenance? Also will it make her ineligible for bursaries?

Thanks in advance for any advice anyone can offer. kje

GwylimT

Student loan no, it may have a bearing on any bursaries that her university offers as they often require the students latest bank statements from all accounts alongside parental income information.

mucgoo

ktj wrote: »

Hi,

Due to an inheritance, my daughter is lucky enough to have isa savings of £25,000. She is doing A levels at the moment and is then hoping to go to university. Our household income is less than £20,000 per annum. Can anyone tell me if her savings will affect her eligibility for a student loan to cover tuition fees and maintenance? Also will it make her ineligible for bursaries?

Thanks in advance for any advice anyone can offer. kje

No one bothers asking about it. Leave them to assume she's a typical penniless teenager and your'll be fine.

I've not heard of requests for the student bank accounts information. Maybe their current account so don't have it in that.

McKneff

Would she not be better paying the bills out of her savings, rather than getting into debt with loans.

GwylimT

McKneff wrote: »

Would she not be better paying the bills out of her savings, rather than getting into debt with loans.

Tuition is £9K per year.

zagfles

McKneff wrote: »

Would she not be better paying the bills out of her savings, rather than getting into debt with loans.

Probably not, as the debt might never be repaid. See Martin's article...http://www.moneysavingexpert.com/students/student-loans-tuition-fees-changes

Taiko

She needs to declare the potential interest she'll receive on the capital, not the capital amount itself. SFE can and do, contrary to a previous post, ask for evidence at random, and as part of the application the student is required to declare the interest on their own savings.

Failure to do so is fraud, and at least you could end up with a termination of all current and future SFE entitlements, and as worst a criminal record.

zagfles

Taiko wrote: »

She needs to declare the potential interest she'll receive on the capital, not the capital amount itself. SFE can and do, contrary to a previous post, ask for evidence at random, and as part of the application the student is required to declare the interest on their own savings.

Failure to do so is fraud, and at least you could end up with a termination of all current and future SFE entitlements, and as worst a criminal record.

Does non-taxable interest need to be declared? (PP said it was in an ISA).

Taiko

Completely skipped over the word ISA, having assumed the inheritance was recent. Will teach me for posting at near 3am with no sleep.

If all of it is in an ISA, then it doesn't need to be declared. Only the taxable interest if it's elsewhere.

zagfles

Taiko wrote: »

Completely skipped over the word ISA, having assumed the inheritance was recent. Will teach me for posting at near 3am with no sleep.

If all of it is in an ISA, then it doesn't need to be declared. Only the taxable interest if it's elsewhere.

Thanks. Would a student need to declare a trivial amount of interest on their current account, or is there a limit below which they don't need to bother?

Taiko

You're supposed to declare all. Truth is though, unless the interest is a couple thousand, it won't really make much difference.