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Lie about student loan and 'living elsewhere'?

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  • System
    System Posts: 178,110 Community Admin
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    You'd probably get away with it but why go all that way to saddle your DS with more debt. If you can afford it (you say you have a high enough income), shouldn't you help out on accomodation costs etc....give DS a better start in the working world?
  • ska_lover
    ska_lover Posts: 3,773 Forumite
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    OP I can see why you would be tempted due to the finances but think about what you are doing - you will be boosting your own finances today in order to drop your son in the poo later on


    If he is only able to get the basic element, as you know, the expectation is on you to financially top him up...and thus your household income will come down. Your spare cash will go on his necessities


    If you go ahead with this plan OP, the only person to benefit would be YOU. As by cheating it, your son gets a higher loan and the expectation will not be on you to help out as much financially


    So you get off scot free, and he ends up in more debt


    If it were me and I genuinely had a decent income, I would rather support my lad through Uni than leave him in debt where I could have helped out
    The opposite of what you know...is also true
  • copperclock
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    ska_lover wrote: »
    OP I can see why you would be tempted due to the finances but think about what you are doing - you will be boosting your own finances today in order to drop your son in the poo later on


    If he is only able to get the basic element, as you know, the expectation is on you to financially top him up...and thus your household income will come down. Your spare cash will go on his necessities


    If you go ahead with this plan OP, the only person to benefit would be YOU. As by cheating it, your son gets a higher loan and the expectation will not be on you to help out as much financially


    So you get off scot free, and he ends up in more debt


    If it were me and I genuinely had a decent income, I would rather support my lad through Uni than leave him in debt where I could have helped out

    Yes, I think you're right. He might well be one of those people who never actually earns enough to fully pay off his student loan (there are many) but hopefully he'll have a high wage and if that's the case then the size of his initial loan will make a difference to his life going forward.

    My OH and I spoke last night about how, ultimately, it will be us benefiting if we were to do this and that we'd rather do the right thing and contribute ourselves. Our income isn't massive - it'll mean making adjustments and tightening belts - but that's what you have to do, isn't it.

    This whole 'idea' hadn't occurred to us at all when DS's father suggested it out of the blue yesterday. I guess I was just looking for reasons why I should say 'no' (as is my instinct) or to find out if it's a thing that people do all the time (like saying your kid lives at Grandma's to get into a school catchment or something).
  • copperclock
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    maman wrote: »
    Not sure how to read this.


    Do you mean how often is fraud committed or how often are checks made to estimate the chances of getting away with it?

    Sorry. I meant how often is this kind of thing done.
  • Malthusian
    Malthusian Posts: 11,009 Forumite
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    edited 9 October 2017 at 3:54PM
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    I guess I was just looking for reasons why I should say 'no' (as is my instinct) or to find out if it's a thing that people do all the time (like saying your kid lives at Grandma's to get into a school catchment or something).

    If people say their kid lives at Grandma's all the time to get them into schools then that's news to me.

    To answer the main question, I doubt this sort of thing goes on that often, simply because it's a debt and in theory you have to pay it back. So you don't actually gain anything by lying.

    It used to be common to take the maximum student loan and stick it into a bank account, so in theory you could have raised your return, but with interest rates now much higher (and cash rates lower) that's no longer appealing. If you knew your child wasn't ever going to earn enough to pay the debt back then it would be free money, but to plan on that basis would take a startling lack of confidence in their earning ability.
  • 5MeoDmt
    5MeoDmt Posts: 15 Forumite
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    It's bad because it is fraud and could land you in a whole heap of trouble.

    This

    :beer:
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
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    You can get a rough idea of whether someone will earn enough to pay off a student loan by which university they are going to. If it is a Russel Group or somewhere like Oxford or Cambridge then the odds are in favour of earning enough to pay the loan back. If it is an ex polytechnic, ex technical college, ex teacher training college, ex art college or any of the other ex institutions that have changed their names to universities then the chances of earning enough to pay the loan back are reduced a lot. You can find out what a university used to be if in doubt by looking it up on wikipedia.
  • Zeni
    Zeni Posts: 424 Forumite
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    Cakeguts wrote: »
    You can get a rough idea of whether someone will earn enough to pay off a student loan by which university they are going to. If it is a Russel Group or somewhere like Oxford or Cambridge then the odds are in favour of earning enough to pay the loan back. If it is an ex polytechnic, ex technical college, ex teacher training college, ex art college or any of the other ex institutions that have changed their names to universities then the chances of earning enough to pay the loan back are reduced a lot. You can find out what a university used to be if in doubt by looking it up on wikipedia.

    I would say that's subjective though as it depends just as much on the subject they are taking. I attended two Russel universities, one undergrad one post grad and my job (teaching) doesnt pay back a huge load of my debt :p however my relative who attended a non russel uni doing a lucrative subject paid back his student loan very quickly.
    Swagbuckling since Aug 2016 - Earnings so far.. £55.
  • copperclock
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    Malthusian wrote: »
    If people say their kid lives at Grandma's all the time to get them into schools then that's news to me.

    To answer the main question, I doubt this sort of thing goes on that often, simply because it's a debt and in theory you have to pay it back. So you don't actually gain anything by lying.

    It used to be common to take the maximum student loan and stick it into a bank account, so in theory you could have raised your return, but with interest rates now much higher (and cash rates lower) that's no longer appealing. If you knew your child wasn't ever going to earn enough to pay the debt back then it would be free money, but to plan on that basis would take a startling lack of confidence in their earning ability.

    Not necessarily. Martin has done some calculations here (section five) and, although graduates start repaying on everything they earn above £25k, in order to repay the entire debt before it's written off (after 30 years) the graduate would have to have a starting salary of around £40k.

    These debts go on for most of their working lives these days. Often they never get entirely paid back. This is why Martin says it should be viewed more as a tax than a debt because it's not about how much the loan is, it's more about how much comes out of your pay packet for most - if not all - of your working life.

    Oh, I've never done the school catchment thing, but I know people who have.
  • z1a
    z1a Posts: 2,522 Forumite
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    Zeni wrote: »
    I would say that's subjective though as it depends just as much on the subject they are taking. I attended two Russel universities, one undergrad one post grad and my job (teaching) doesnt pay back a huge load of my debt :p however my relative who attended a non russel uni doing a lucrative subject paid back his student loan very quickly.

    You should have gone to a Russell uni.
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