Student Loan questions

Sumselkb
Sumselkb Posts: 68
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edited 11 November 2022 at 10:30AM in Student MoneySaving
I took out a student loan in Scotland between 1998 and 2002. I have never had to pay any of it back because I have never earned over the minimum amount required to start paying it back.

If I don't earn over the minimum amount required between now and 2032 then I don't pay it back? 

What if I get any inheritance between now and 2032? Would that have any consequences regarding the student loan?

What if I pay into a company share save between now and 2032 and have shares does that have any consequences regarding the student loan?

Comments

  • Student loan repayments are done based on income, not inheritance, savings etc

    If you never earn enough to go over the threshold you wouldn't pay it back
  • Student loan repayments are done based on income, not inheritance, savings etc

    If you never earn enough to go over the threshold you wouldn't pay it back
    Inheritance and savings don't count towards student loan repayments. That's good to know.

    But what about if you have dividends? I thought I read somewhere the other day that dividends are counted as income when you are assessed against the student loan repayment threshold?
  • silvercar
    silvercar Posts: 46,739
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    I'm sure you will find similar questions over on the student board, where this question would be better placed. I've asked the MSE forum team to move it over to there.

    https://forums.moneysavingexpert.com/categories/student-money-saving
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • My daughter’s best friend got kicked out of uni due to unpaid fees as he was waiting for student Finance to sort out his tuition.
    This all started because in his first year at uni a couple of years ago, he decided to change courses but instead of switching programmes, he withdraw from the programme at the time and applied at another university on a different course. Consequently, Student Finance asked him to repay the loan from his first year and when he reapplied for the new course, Student Finance said he would not receive funding for the entire programme. He tried to appeal against repaying the initial loan on the basis that he wasn’t earning much from his part time job but Student Finance has not provided any guidance and continues to mess him about. Unfortunately today, he was told due to unpaid tuition, he is no longer enrolled on the course.
    He lives at home with his mum who is a single parent and has no other financial support. I suggested contacting citizens advice bureau, are there any other options he could get some guidance or support from?

  • silvercar
    silvercar Posts: 46,739
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    The general rule is that you are allowed funding for the total length of the new course, less the number of years funding you received for the failed course plus one year. 

    So if he dropped out in the first year of the old course he should be ok. If he dropped out later on then there will be a gap where he needs to self fund. 

    It also relies on the student re-applying for the new course funding as they did the first time round d withdrawing properly from the old course, to make sure fees aren’t sent to that university.

    the university should have a student welfare/ finance officer that can advise.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • silvercar said:
    The general rule is that you are allowed funding for the total length of the new course, less the number of years funding you received for the failed course plus one year. 

    So if he dropped out in the first year of the old course he should be ok. If he dropped out later on then there will be a gap where he needs to self fund. 

    It also relies on the student re-applying for the new course funding as they did the first time round d withdrawing properly from the old course, to make sure fees aren’t sent to that university.

    the university should have a student welfare/ finance officer that can advise.
    Thank you for the response. Just feels like he’s been messed around and not had any proper guidance. He has reached out to student welfare but apparently not helping.

    Correction: he dropped out beginning of year 2 and re-enrolled to a different uni/course, he was aware he would have to self fund part of the course; but he hasn’t received tuition loan for the start of the new course. However, he is entitled to maintenance loan. It is all too confusing.
  • silvercar
    silvercar Posts: 46,739
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    silvercar said:
    The general rule is that you are allowed funding for the total length of the new course, less the number of years funding you received for the failed course plus one year. 

    So if he dropped out in the first year of the old course he should be ok. If he dropped out later on then there will be a gap where he needs to self fund. 

    It also relies on the student re-applying for the new course funding as they did the first time round d withdrawing properly from the old course, to make sure fees aren’t sent to that university.

    the university should have a student welfare/ finance officer that can advise.
    Thank you for the response. Just feels like he’s been messed around and not had any proper guidance. He has reached out to student welfare but apparently not helping.

    Correction: he dropped out beginning of year 2 and re-enrolled to a different uni/course, he was aware he would have to self fund part of the course; but he hasn’t received tuition loan for the start of the new course. However, he is entitled to maintenance loan. It is all too confusing.
    I think that is right, he wouldn’t be entitled to tuition fee funding for the first year of the new course as he had tuition fee funding for some of the second year of the original course.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
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