Would I receive less loan money in year 2 if I place money into high interest account

Psychobot

Just say I used my overdraft facility at Bank A and withdrew £1000ish and placed it into a high interest account with unspent student loan money...

When I apply for a loan in year 2, would this affect how much loan money I'd be given- i.e. would having over 4 grand in the bank affect the amount of money I'd be approved to borrow from SLC?

CLAPTON

the SLC loan is made up of income assessed and non income related elements.
The non income assessed part would not be affected. the income assessed part could in principle be affected.. depends upon your circumstances.

student_advisor

SLC take a student's taxable, unearned income into account, so you would need to declare any interest you made (though technically, you don't pay tax on your savings interest as a student). If you put it in an ISA, then shouldn't need to declare it as it's not taxable.

To be honest, you'd have to be raking the interest in for it to have an impact on any loan available to you.

CLAPTON

student_advisor wrote: »

SLC take a student's taxable, unearned income into account, so you would need to declare any interest you made (though technically, you don't pay tax on your savings interest as a student). If you put it in an ISA, then shouldn't need to declare it as it's not taxable.

To be honest, you'd have to be raking the interest in for it to have an impact on any loan available to you.

Non ISA interest is taxable income for everybody including students. If however, their relevant income (i.e. excluding Student loans ) is less than 5225 then they dont pay tax , just like everyone else.