Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • *starrysky*
    • By *starrysky* 30th Jan 18, 12:41 AM
    • 3Posts
    • 1Thanks
    *starrysky*
    Inheritance and student loan repayment
    • #1
    • 30th Jan 18, 12:41 AM
    Inheritance and student loan repayment 30th Jan 18 at 12:41 AM
    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?
Page 1
    • Tom99
    • By Tom99 30th Jan 18, 3:59 AM
    • 3,028 Posts
    • 2,072 Thanks
    Tom99
    • #2
    • 30th Jan 18, 3:59 AM
    • #2
    • 30th Jan 18, 3:59 AM
    You don't need to worry, a gift or inheritance is not earnings for student loan repayment purposes.
    • silvercar
    • By silvercar 30th Jan 18, 8:37 AM
    • 38,167 Posts
    • 160,469 Thanks
    silvercar
    • #3
    • 30th Jan 18, 8:37 AM
    • #3
    • 30th Jan 18, 8:37 AM
    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.
    I'm a Board Guide on the Debate House Prices & the Economy, House Buying, Renting & Selling, Mortgages and Endowments, In My Home incl DIY, Overseas Holidays & Student boards.
    I volunteer to help get your forum questions answered and keep the forum running smoothly.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of moneysavingexpert.com.
    • *starrysky*
    • By *starrysky* 30th Jan 18, 10:38 AM
    • 3 Posts
    • 1 Thanks
    *starrysky*
    • #4
    • 30th Jan 18, 10:38 AM
    • #4
    • 30th Jan 18, 10:38 AM
    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
    • By Voyager2002 30th Jan 18, 2:03 PM
    • 12,529 Posts
    • 8,559 Thanks
    Voyager2002
    • #5
    • 30th Jan 18, 2:03 PM
    • #5
    • 30th Jan 18, 2:03 PM
    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?
    Originally posted by *starrysky*
    No, none of that is relevant to the student loan.
    • sueclifton
    • By sueclifton 10th Nov 18, 12:19 PM
    • 1 Posts
    • 0 Thanks
    sueclifton
    • #6
    • 10th Nov 18, 12:19 PM
    • #6
    • 10th Nov 18, 12:19 PM
    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
    • By Tom99 10th Nov 18, 12:28 PM
    • 3,028 Posts
    • 2,072 Thanks
    Tom99
    • #7
    • 10th Nov 18, 12:28 PM
    • #7
    • 10th Nov 18, 12:28 PM
    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
    Originally posted by sueclifton

    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.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

363Posts Today

3,508Users online

Martin's Twitter