Student Maintenance Loan - Parents/Household Income

janadan

Can someone please clarify whether government student maintenance loan is calculated based on the parent's gross or net salary? If on gross - is it the taxable salary (i.e. after the tax-free allowance is taken out of consideration?) Also, my pension contributions are deducted by my employer pre-tax. Presumably, I can reduce my taxable income by increasing my pension contributions? (I am trying to avoid my daughter's loan to be reduced.) Thank you.

silvercar

The calculation starts with the gross income. It allows for pension deductions, so increasing your pension contributions may help.

https://www.gov.uk/support-child-or-partners-student-finance-application

You will be asked for your NI number, so they can access your records and your pension contributions, any other voluntary contributions and details of any other children you support.