Inheritance and student loan repayment

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*starrysky*
*starrysky* Posts: 3 Newbie
in Student MoneySaving
If parents have money to help their child with a deposit for buying a house and getting a mortgage- but their child has a student loan-(child is not earning enough to repay yet) what is the best thing to do? Can the parents pay the deposit as a gift when a house is found or would the money be subject to paying the loan?Can students with a loan receive an inheritance- would that count towards earnings and loan repayment? Also, are students with loans able to save in the help to buy ISA . Would that be considered as money that should repay loan or is it exempt?

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  • Tom99
    Tom99 Posts: 5,371 Forumite
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    You don't need to worry, a gift or inheritance is not earnings for student loan repayment purposes.
  • silvercar
    silvercar Posts: 47,044 Ambassador
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    Think of the student loan as a graduate tax.

    Students can receive gifts, loans, inheritances without it effecting their loan.

    They can also make savings without paying extra towards their loan.
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  • *starrysky*
    *starrysky* Posts: 3 Newbie
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    Thanks for your replies. What about the Help to Buy scheme where the government will add 25% of what you save in this account? Would this government bonus be counted as earnings.? I believe if you have more than £2000 in savings that earns interest, this is considered earnings and is added to your income, so would the Help to Buy bonus be counted as the same?
  • Voyager2002
    Voyager2002 Posts: 15,325 Forumite
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    *starrysky* wrote: »
    Thanks for your replies. What about the Help to Buy scheme where the government will add 25% of what you save in this account? Would this government bonus be counted as earnings.? I believe if you have more than £2000 in savings that earns interest, this is considered earnings and is added to your income, so would the Help to Buy bonus be counted as the same?

    No, none of that is relevant to the student loan.
  • sueclifton
    sueclifton Posts: 1 Newbie
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    Hi

    So am I right in thinking if my son is included in a house purchase from his grandparent this won't go against him having to pay back extra funds to his student loan ? Therefore he will be part owner of a property. Thanks
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    sueclifton wrote: »
    Hi

    So am I right in thinking if my son is included in a house purchase from his grandparent this won't go against him having to pay back extra funds to his student loan ? Therefore he will be part owner of a property. Thanks


    [FONT=Verdana, sans-serif]No student loan implications but he will no longer get the first time buyer stamp duty relief if he buys another property at a later date and may have to pay the 3% additional stamp duty if it is a gift rather than 50% or less inheritance from grandparents.[/FONT]
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