Student Finance and current household income

bblues

Hey all,

I'm a 2nd year and I've been living at home and commuting in to my local university for the past two years, but I *should* be going on an international year next academic year starting in August 2019. Living costs will inevitably be a lot higher, but that would be ok because according to STE, I would get close to the maximum (about 8 grand) for student finance based on my current household income.

The problem is this: 2019/2020 student loans are based on your household income in the financial year 17/18 (or you can apply for it to be based on the financial year 18/19 if your income has dropped by at least 15%). However, one of my parents retired in August 2018, halfway through the financial year 18/19.

While that makes my household income eligible to be based on the financial year 18/19, it’s not enough to seriously change the amount I would get from a maintenance loan. If it was based on that information, I'd get closer to £3 grand a year, which isn't enough to live off.

This leaves me with a both a maintenance loan and a household income that just isn’t enough to support my accommodation/living costs.

I could get a job over the summer, but that’s unlikely to raise the 5 grand I need. I can’t work whilst I’m over there, because that wouldn’t be in line with my visa. I could take a year out, but I don’t really want to do that, because it’d stretch my degree out to 5 years.

Does anyone have any solutions to this?

silvercar

The solution (as spoken by Martin Lewis in one of his roadshows) is to have a conversation with your parents as to the amount of financial support they will give you. You loan is being restricted because their income is high.

Dobbibill

Can you do a summer job and speak to your parents about contributing. A compromise maybe.

bblues

That's the problem @slivercar, my parent's income was high, but isn't now - and the current household income isn't high enough. But because it was high, the amount I get from maintenance is low and hasn't caught up

sheramber

Did you not make any financial plans for your international year?

Have you discussed this with your parents?

bblues

@sheramber, yes and yes. I calculated how much I would get based on current household income on STE's Student Finance Calculator (about £8000) and that was enough to cover the cheapest accommodation, food and then some. The problem is that loans aren't based on the current household income, its based either on the household income of last year or the year before, both of which put me at about £3000

silvercar

bblues wrote: »

@sheramber, yes and yes. I calculated how much I would get based on current household income on STE's Student Finance Calculator (about £8000) and that was enough to cover the cheapest accommodation, food and then some. The problem is that loans aren't based on the current household income, its based either on the household income of last year or the year before, both of which put me at about £3000

Sounds like you calculated on the wrong year. Also the discussion with your parents, if it had taken place at the right time would mean they could have put some money aside from their high earning years to support you.

Is waiting a year an option, so that the calculation would be based on your parent's later income.

hera50

My understanding is that you can complete a Current Year Income Assessment Form (CYI) 2019/2020 where you estimate your household income for the 19/20 year. The actual income is declared at the end of the year and adjustments are then made.

sheramber

http://media.slc.co.uk/sfe/currentyearincome/students.html