Is this illegal - getting student loan, no intention of paying it back

Legacy_user

I'm sure this MUST be Illegal? If its not, then I think going to university is a good way to make £21k over 3 years and get some qualifications

The student loan is £7500 per year. You only pay it back if you earn over £18000 after graduating.

After graduating, I only plan to earn £10000 per year (only want to work part time)

So I would be receiving 3 x £7500 and never need to pay it back because I wouldn't be earning over the £18000 mark.

Mojisola

berbastrike wrote: »

I'm sure this MUST be Illegal? If its not, then I think going to university is a good way to make £21k over 3 years and get some qualifications

You don't get to keep the money.

System

Mojisola wrote: »

You don't get to keep the money.

But would it need to paid back if I did not earn over the £18,000 mark?

Mojisola

berbastrike wrote: »

But would it need to paid back if I did not earn over the £18,000 mark?

Not under the present rules so you would carry on having the debt plus interest payments until it's written off.

jamesmorgan

Yes, definitely legal and an increasing option being taken by older people.

http://www.telegraph.co.uk/education/universityeducation/10947400/Rising-numbers-of-over-50s-taking-out-student-loans.html

Whilst there was a lot of initial fuss about the new student loan system, many people overlooked the fact that around 50% of the costs were still being met by the tax-payer. The older you are the greater the balance of the costs on the tax-payer. For many of these students they will not re-pay any of their student loan. I guess this is the problem with a 'graduate tax' based scheme, but on balance I'm not sure that I'm really that opposed to the state funded university education we currently have. Everyone has the 'right' to a state funded university education. If you personally benefit through higher salaries you pay back some of it through higher taxes. If you don't achieve this, then you don't pay back any of it. Seems fair enough to me.

jamesmorgan

PS. The current income threshold is £21K (not £18K)

jamesmorgan

Also, as a student you may be able to claim other financial support, eg

a) Maintenance grant of up to £3387
b) Parents Learning Allowance of £1523 if you have dependent children
c) Adult Dependants Grant of £2668 if you have an adult who is dependant on you financially
d) Child Tax Credit of £2750 for each dependant child
e) Full council tax rebate (unless living with non-student adults)
f) Potentially free prescriptions, dentists and eye test costs
g) Numerous other student discounts

Unlike a student loan, none of the above will ever need paying back however much you earn. Just as a simple example, a married person with non-working spouse and 4 children should expect to receive over £22K/annum tax free in various grants/financial support

agrinnall

If you have so little ambition that you'll be happy earning £10K or less for the rest of your life then I fear you won't have the enthusiasm necessary to complete a degree, in which case you could end up having borrowed less than you hope to.

Mojisola

agrinnall wrote: »

If you have so little ambition that you'll be happy earning £10K or less for the rest of your life then I fear you won't have the enthusiasm necessary to complete a degree, in which case you could end up having borrowed less than you hope to.

Working for £10k is an advancement on retiring at 26!
https://forums.moneysavingexpert.com/discussion/5079330

System

agrinnall wrote: »

If you have so little ambition that you'll be happy earning £10K or less for the rest of your life then I fear you won't have the enthusiasm necessary to complete a degree, in which case you could end up having borrowed less than you hope to.

I have almost 1/2 million in the bank

Your comment is out of touch. Many people work part time or earn £10k and live happy, simple lives. Happiness and time beats money everytime.

patrickbateman

berbastrike wrote: »

I have almost 1/2 million in the bank

Your comment is out of touch. Many people work part time or earn £10k and live happy, simple lives. Happiness and time beats money everytime.

Good luck to you, but I wouldn't feel right if I was in your fortunate financial position