Best way to help when child is in financial crisis

meer53

Mumtomany wrote: »

Hi

So, she’s gone and done it. Got herself into debt, too proud to ask for help but has got to robbing Peter to pay Paul. She works around her studies. A harsh talk and reality check leaves us clearing her excess debt and arranged a sensible payment schedule so that the money is repaid. Lessons need to be learned and we cannot afford to give her the money.

My question is, her future maintenance loan will be paid to her monthly (via us her parents) so that she doesn’t blow it all in one go and hopefully eliminate her poor money management badly again. How do we pay it so that it doesn’t look like we’re taking her payment even though she’s having it back every month? I’m not sure I’m making myself clear. Basically, she will pay us her loan 3 times a year and we will give it to her divided over 12 months but we don’t want it to appear that our bank account is wealthier than it actually is, could this affect her future student finance applications?

Gosh I thought newborn baby stage was hard, teenagers and uni students is another level of parenting

Thanks

It's your income as declared to HMRC that SLC take into account for Student Loan calculations, not whats in your bank account ? SLC don't ask for bank statements so i can't see what the issue is ?

Savvy_Sue

meer53 wrote: »

It's your income as declared to HMRC that SLC take into account for Student Loan calculations, not whats in your bank account ? SLC don't ask for bank statements so i can't see what the issue is ?

This. Unless you're claiming means-tested benefits, where they MAY ask to see bank statements, you are overthinking this.

However, couple of other thoughts:

• Student loans may make 3 payments each year, but is the 3rd payment meant to last through the summer vacation? If not, you need to spread the monthly payments less equally and encourage her to work more hours over the summer
  
• She's an adult. There are 101 ways in which she can circumvent this or any other arrangement.
  
• If she does it again, you just don't bail her out. You say you won't be able to do so: you don't have to do it this time. You can help her work through it, you don't have to take over in the way you're suggesting - and I'd argue that it's not necessarily the best way to go.