The scrapping of student grants – what it means & how bad is it?

Mrs_Arcanum

zagfles wrote: »

But how does that affect the loan when there are 2 or more students at uni? If it doesn't affect the loan, what's the point of calculating it?I was just looking at section A which is for new entrants in 2016.

That part seems to relate to the amount students get regardless, versus the reductions to the loan depending on parental/family income.

Basically, students lose £1 of loan for every £8.34 - £8.59 (varies on where the student lives/studies) of family/parental income over £25,000 up to The next tax threshold. There is a set amount ALL students will get (non assessed income). The rest varies.

It is very confusing as it frequently mentions benefits. What is is impossible to decipher is how parental income is accounted when there is more than one student at university. Nor does it show any consideration for funding when parents have other children at home. Yet I know when there are more than 2 children this is allowed for.

zagfles

Mrs_Arcanum wrote: »

That part seems to relate to the amount students get regardless, versus the reductions to the loan depending on parental/family income.

Section A covers both for 2016 starters.

Basically, students lose £1 of loan for every £8.34 - £8.59 (varies on where the student lives/studies) of family/parental income over £25,000 up to The next tax threshold. There is a set amount ALL students will get (non assessed income). The rest varies.

It is very confusing as it frequently mentions benefits. What is is impossible to decipher is how parental income is accounted when there is more than one student at university. Nor does it show any consideration for funding when parents have other children at home. Yet I know when there are more than 2 children this is allowed for.

Yes. That was my question!

zagfles

missbiggles1 wrote: »

I'm sorry, your figures are all wrong.

Students get a full loan until the household income reaches over £50k not £25k. £25k was the figure for when the now abolished grant stopped being available and is often the cut off point for university bursaries. An allowance of £1,130 is applied to the residual income calculation for any financially dependant child (also if one of the parents is a student).

http://www.practitioners.slc.co.uk/media/2479/assessing-financial-entitlement-15-16.pdf

The situation for parents' contributions is not as bad as you're trying to make out.

The rules change every few years. For 2016 starters the loan gets reduced from a £25k income, as per Martin's guide, and the link I posted above.

missbiggles1

zagfles wrote: »

Section A covers both for 2016 starters. Yes. That was my question!

Sorry, I thought I'd covered that in my post.

To quote from your link -

"In calculating the household income, an allowance of £1,130 may be made for a parent who is an
eligible student or who holds a statutory award. The household income may also be reduced by £1,130
for each child wholly or mainly dependent on the student or the student’s partner or each child (other
than the student) who is wholly or mainly financially dependent upon the student’s parent or the
parent’s partner whose income is being taken into account."

zagfles

missbiggles1 wrote: »

Sorry, I thought I'd covered that in my post.

To quote from your link -

"In calculating the household income, an allowance of £1,130 may be made for a parent who is an
eligible student or who holds a statutory award. The household income may also be reduced by £1,130
for each child wholly or mainly dependent on the student or the student’s partner or each child (other
than the student) who is wholly or mainly financially dependent upon the student’s parent or the
parent’s partner whose income is being taken into account."

That doesn't explain how loans are calculated when there are 2 or more students at uni. The above also applies where the other child is still at school etc, eg one child at school, one at uni.

My question was what "assessed contribution" is used for. It says

Assessed contribution figures in tables A6, A9 & A11 are used to determine the amount of support where a 2016 cohort student has applied for loans for living costs and supplementary support or where there are two or more students in a household.

It makes a point of calculating it, showing tables of it, but what difference does "assessed contribution" make to the loan when there are 2 or more students at uni? The tables in A6 etc seem to show exactly the same loan as would be given to one student at uni.

missbiggles1

zagfles wrote: »

That doesn't explain how loans are calculated when there are 2 or more students at uni. The above also applies where the other child is still at school etc, eg one child at school, one at uni.

My question was what "assessed contribution" is used for. It says It makes a point of calculating it, showing tables of it, but what difference does "assessed contribution" make to the loan when there are 2 or more students at uni? The tables in A6 etc seem to show exactly the same loan as would be given to one student at uni.

Are you sure about that? A student who's assessed on his/her parents' income is "financially dependent" on its parents just as much one who's still at school.

ETA
From SLC Adviser on
http://www.mumsnet.com/qanda/student-loans

"where, for example there are two full-time students who are siblings being supported, this will be taken into account. Where there is more than one eligible student in a household, the household income figure is reduced by £1,130 and this figure is then used in the assessment calculations."

zagfles

missbiggles1 wrote: »

Are you sure about that? A student who's assessed on his/her parents' income is "financially dependent" on its parents just as much one who's still at school.

Yes I know!! That why I said "..also applies..".

My question was about "assessed contribution". What the point of calculating it is and what difference it makes to the loans. It says it's used to determine the amount of support but not how.

missbiggles1

zagfles wrote: »

Yes I know!! That why I said "..also applies..".

My question was about "assessed contribution". What the point of calculating it is and what difference it makes to the loans. It says it's used to determine the amount of support but not how.

I think we must be talking at cross purposes, it looks straightforward to me - household income is reduced by £1,130 when calculating residual income in a household with two students.

Mind you - it's probably me missing something.

missbiggles1

zagfles wrote: »

The rules change every few years. For 2016 starters the loan gets reduced from a £25k income, as per Martin's guide, and the link I posted above.

Apologies, I was using last year's figures so have deleted my post.:o

Mrs_Arcanum

missbiggles1 wrote: »

Apologies, I was using last year's figures so have deleted my post.:o

Even my daughters loan for her second year Fees & Maintenance loan has no grant element whatsoever. Our family income does not reach £50,000.