Help With Student Loans - HERE!

Mullbot · 3 May 2011 at 5:16PM

I've recently got accepted into a Masters course, I still have about £2k overdraft spread throughout two banks that needs paid back. Dire employment situation since leaving my undergraduate, so haven't been able to pay much off it. Meaning my credit record wouldn't be the greatest.

What I'm wondering is, the Career Development Loan is how i'll be paying most of my masters, I'd say a 3k/4k loan will prob be needed. Is my overdrafts going to prove a problem here? Like will this result in me getting refused the CDL?

Oldernotwiser · 3 May 2011 at 5:24PM

MalD wrote: »

My income puts me in the over £60k household income bracket, so according to this I am expected to provide support to my kids who will only get the minimum maintenance loan of £3654, but I have debt problems (currently in a DMP with Payplan) - is there any other help available or do I just have to tell my daughter she has to work and pay her own way, or not go to Uni?

Debts aren't taken into account for student finance but plenty of students manage on the basic loan and part time work.

SavingChris · 4 May 2011 at 11:57AM

Hi

I was made redundant in Dec 2010 but still supporting son #2 at Uni. I have received a redundancy package but I am not sure if it is counted as income. I know that upto £30k it is tax free (and therefore not counted as income??). BUT I also have received an extra redundancy amount over the £30k for various elements of the package.

Can you clarify if it is counted as income for grant/loan purposes.

Also the package was paid over two tax years and so I received the second payment recently in 2011/12 tax year. What is the best way for me to be assesed for my son's loan/grant. I still have not got a job yet

Many thanks

ceewash · 7 May 2011 at 9:33PM

My son finished his degree in 2010 and is now coming to end of his masters degree. Having seen his statement on his student loan which he has not begun to pay back, I was wondering if it is possible to start repaying before his pay reaches the £15000 threshold? It's just that interest is being added at about £30 a month. His loan is about about £20000.

MrsManda · 7 May 2011 at 9:42PM

ceewash wrote: »

My son finished his degree in 2010 and is now coming to end of his masters degree. Having seen his statement on his student loan which he has not begun to pay back, I was wondering if it is possible to start repaying before his pay reaches the £15000 threshold? It's just that interest is being added at about £30 a month. His loan is about about £20000.

Yes it is possible to pay off his loan now but there's no requirement to do so and it's usually better to put extra money into savings rather than repaying a student loan early.
Have a look at Martin's Guide to Repaying Loans
http://www.moneysavingexpert.com/loans/student-loans-repay

if you want to know how he can repay his loan before he's earning above the threshold have a look on the SLC repayment website
http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867391&_dad=portal&_schema=PORTAL

ceewash · 7 May 2011 at 9:47PM

Thanks. have just read this article. Seems like it would be better saving instead of paying into loan.

IGraham · 8 May 2011 at 11:39PM

hi
I took out a student loan 1998 to 2002 then again in 2004 I'm now 57 and presently unemployed, the loans will be cancelled when i reach 65 I believe
However due to the death of a parent I'm likely to receive a ?? amount of money
Does anyone know how much I'm allowed to have in my bank account, does SLC get any sort of notification or can they ask for details of my bank account
Any advice on this situation gratefully received

MrsManda · 9 May 2011 at 7:25AM

IGraham wrote: »

hi
I took out a student loan 1998 to 2002 then again in 2004 I'm now 57 and presently unemployed, the loans will be cancelled when i reach 65 I believe
However due to the death of a parent I'm likely to receive a ?? amount of money
Does anyone know how much I'm allowed to have in my bank account, does SLC get any sort of notification or can they ask for details of my bank account
Any advice on this situation gratefully received

You are meant to tell them if you have unearned income of more than £2000 a year. As far as I understand it, this does not mean any capital, but is related to interest/dividends from savings, stocks and shares. So if you get a lump sum which is large enough for you to be receiving over £2000 in interest then you need to tell the SLC, otherwise you're ok.
If you need to fill out a self-assessment form for the HMRC then they'll tell you if you need to pay more Student Loan contributions.

Unearned income

If you have unearned income of more than £2,000 a year, for example interest on stocks, shares or savings, you may have to make additional student loan repayments.

HM Revenue & Customs will advise you if you need to make any payments directly to them in respect of student loans once they have assessed any Self Assessment tax return you submit to them.

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867311&_dad=portal&_schema=PORTAL

Oldernotwiser · 9 May 2011 at 7:31AM

Post 1998 loans are based on income rather than capital so you'll have nothing to pay unless the interest on your inheritance takes your income over £15,000.

IGraham · 9 May 2011 at 11:57PM

Thanks for the replies, that's cleared up a few things

Help With Student Loans - HERE!

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