Student Loan : parental support & SIPP payments

kAllen27

Why do slc require information about SIPP payments when completing the parental support / income application? I note the declaration was for SIPP not workplace pension payments / salary sacrifice.   Do they consider your income amount after the SIPP payment has been deducted? I don’t understand why it would be relevant if this is not the case? 

Thanks 

badmemory

I suispect they may want to check that a parent is not using the SIPP payment to avoid contributions to the student's education.

silvercar

Pension contributions reduce your residual income, so enabling your offspring to have a potentially higher loan. That’s why they ask, they can see deductions for a work place pension through your payslip or P60, but private contributions are not shown, so they need to ask.

badmemory said:

I suispect they may want to check that a parent is not using the SIPP payment to avoid contributions to the student's education.

It’s allowed. You can even increase or make a lump sum contribution to a SIPP and withdraw money from an ISA to supplement your income if needed.