Parent Savings Interest Towards Student Loan Application

GutsyMcGee

I have searched everywhere for a simple answer, without success - Is parental savings interest included in the household income assessment for student loans?

My 2023/2024 household income (which is the one they asked for on the application) consisted of gross salary of £15,638 + rental income of £8400 = £24,038.

My 2024/2025 income was gross salary £15,140 (reduced hours) + rental income £8400 = £23,540

My daughter applied for the student and maintenance loans and was granted the full loan for tuition, but £9223 for the maintenance.  I know it's 'only' £1,321 down, but I am a single parent (widowed in 2022). The only reason I can think of, is that having received a death-in-service payment from my husband's employer and keeping it in a savings account (after maxing out all ISAs), has pushed me over the £25k threshold with the interest.

Thanks in advance 

silvercar

Does student finance know your income has dropped? If income drops by more than 15% you can ask to be reassessed on the current year income.

Amended post, deleting info that wasn’t correct.

Ed-1

silvercar said:

I thought it was only income that would be subject to NI contributions, so interest wouldn’t count. Does student finance know your income has dropped? If income drops by more than 15% you can ask to be reassessed on the current year income.

Taxable savings interest counts for assessing student support in a means test, but it would not count for determining repayments unless total unearned income was at least £2,000 and the borrower filled in a tax return.

Grumpy_chap

silvercar said:

I thought it was only income that would be subject to NI contributions, so interest wouldn’t count. Does student finance know your income has dropped? If income drops by more than 15% you can ask to be reassessed on the current year income.

In the OPs case, the rental income would also not be subject to NI contributions.

I don't know, but suspect, that income assessment for offspring's student loan eligibility must consider all type if income.  If that were not the case, it would be far too easy for the outcome to be manipulated by those not in straightforward employed work but having own Ltd Co.

silvercar

Ed-1 said:

silvercar said:

I thought it was only income that would be subject to NI contributions, so interest wouldn’t count. Does student finance know your income has dropped? If income drops by more than 15% you can ask to be reassessed on the current year income.

Taxable savings interest counts for assessing student support in a means test, but it would not count for determining repayments unless total unearned income was at least £2,000 and the borrower filled in a tax return.

Thanks. I knew I’d read something about income being NI relevant. Will amend.

silvercar

The final year of study attracts a lower loan, as the student loan doesn’t need to cover the summer.

GutsyMcGee

Thanks all!  That’s answered my question. Interest was over £2000 and I did need to complete a tax return, so just as I thought 😊