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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask about dad funding me for a year

52 replies

Serafina111 · 15/01/2018 13:48

I’m due to start a one year masters course this year, and the postgraduate loan will cover the course fees and nothing else.

Apart from Child tax credit and Child benefit (I’m a lone parent with one toddler dc) I won’t have any other income.

I currently work 16 hours a week and get working tax credit but I’ll have to give up my job when I start the course as it’ll clash with the hours.

Apparently income support will count a third of my loan as usable income even though it’ll be spent on course fees, so I doubt I’ll get anything from them.

My dad is in a position to fund me for one year, including my mortgage repayments and living costs plus any childcare I have to pay (I’m hoping I’ll get the 15 hours funded childcare for two year olds at least). This will come to about £15,000. It’ll be in lieu of inheritance.

Will this be counted as taxable income or do gifts of money from family not count? I’m trying very hard to work out my finances for that year and I’m worried about miscalculating or being liable for anything I’ve not thought of...

OP posts:
HermionesRightHook · 15/01/2018 14:26

People go into a lot of debt, they don't do it at all, or they get funding of some kind.

What used to happen is that there were bursaries available for small numbers of people on each type of course, aimed at ensuring that the very best and brightest could afford a years PG study as a prerequisite for getting onto a PhD. They weren't tied together, you didn't have to do a PhD, and they were open to all, but it did provide a pathway for less well off people to become university lecturers, thus ensuring that the academy wasn't stuffed completely full of MC and UMC types.

But to answer your question it counts as a gift, and I don't think your free childcare hours are affected as they are for your daughter to get a head start on being in a vaguely school like environment, rather than being specifically provided for you to work.

HermionesRightHook · 15/01/2018 14:28

(BTW if this is a law conversion course be very careful - check out employment stats in minute detail, because there's a hell of a lot of people going for them and not many training posts afterwards)

Original poster
Serafina111 · 15/01/2018 14:28

This wasn’t intended to start a debate on whether or not I should work through my masters - it’s best for me and dc if I don’t. It’s certainly not a question of me being workshy! I’ve worked full time since I was 18 and had two jobs when I did my undergraduate degree. I’ve only dropped to 16 hours a week since having dc 18 months ago. I’m simply trying to find out if my plan is doable or if there’s anything I haven’t thought of.

OP posts:
Original poster
Serafina111 · 15/01/2018 14:31

It’s not law! There is a very high employment rate for students of this course (85% within six months of completing it)

OP posts:
FinallyHere · 15/01/2018 14:32

My parents contributed significantly to the costs of my fees / living expenses for my MSc. I shall be forever grateful, that course did, as thy say, change my life very much for the better. It got me a job where i was offered the option of a fully funded, part time MBA, offered to anyone who already had a masters level qualification.

If the parents can fund you out of their income, when there is no tax liability to consider. If they could not do so, and are releasing funds, then it really is worth their finding someone who can explain the tax implications, especially If they are not likely to survive for seven years after the one off gift. All the best.

Bluelady · 15/01/2018 14:35

Bet you wish you'd never asked now! The source of the money, i.e whether it's income or something else is irrelevant.

Kikashi · 15/01/2018 14:38

I think as a full time student you would still be entitled to CTC and you might be able to get help with the mortgage interest (after the qualifying period). Are you sure you have researched all the benefits you might get. I was surprised that a bursary my uni gave me for having dependents and being on a low income was not classed as income for CTC - would the uni you are attending have bursaries for your course?

Get all your info together and then ask your dad.Don't try to work if the course is full on - it is your chance to do really well and change your circumstances - no point in doing badly because you are too stretched having to work as well.

Could you take out a Career Development type loan with a bank - you do start having to repay it as soon as the course finishes but I have known many postgrads have to do this when their parents can't afford to sub them on a masters.

dickiedavisthunderthighs · 15/01/2018 14:43

I work in Higher Education, you should be fine in terms of tax now, but as a PP said this could cause you to pay inheritance tax further down the line.
The students I work with are often funded by parents, particularly international students where it's more normal for HE to be funded by family. Others work around it, some get scholarships and in a few cases I've known students put it all on a credit card! I think that if a person knows it will bring long-term benefits they'll find a way to fund it.
Have you researched whether there are any scholarships in your field?

Original poster
Serafina111 · 15/01/2018 14:43

Bluelady it’s the risk you take when you ask anything on AIBU Grin

Thanks Kikashi, yep, should be eligible for Ctc and cb but not much else. Asked uni, no bursary or other help apart from postgrad loan which is entirely swallowed by course fees. I think by the time the qualifying period of 39 weeks for help with the mortgage interest is up, I should be in work, or soon to be!

Career development loan an option yes but shouldn’t need it with dad’s money, hopefully!

OP posts:
Original poster
Serafina111 · 15/01/2018 14:47

Thanks dickie that’s next to do! I have a list of possible organisations/funds etc to contact

OP posts:
dickiedavisthunderthighs · 15/01/2018 14:49

For the record I think what you're doing is brilliant. A close friend managed to juggle a newborn with her second and final year of a physio degree (no partner, no family) and came out with a first - it's provided the foundation for a great career and future for her and her daughter.
It's bloody hard work but what an achievement!

Original poster
Serafina111 · 15/01/2018 14:52

Cheers dickie and well done to your friend! I’m very excited about doing the course and as long as I survive financially for that year, should be absolutely fine afterwards!

OP posts:
HamishBamish · 15/01/2018 14:54

I think it's great that your dad is helping you fund your masters. Most parents would help in a similar way if they had the funds.

DH's parents funded his MBA. He did it part-time, studying and attending lectures in the evenings after work. I still don't know how on earth he did it. We had DS1 in his second year and DS2 was due 2 weeks before he finished. It's opened a lot of doors for him, but he also worked extremely hard.

Good luck OP. It's a fantastic opportunity!

saladdays66 · 15/01/2018 14:56

Deos your ex pay child maintenance? if not, I'd pursue him for that.

Original poster
Serafina111 · 15/01/2018 14:59

Ex pays the grand sum of £30 a week so it doesn’t make much difference unfortunately!

Thanks Hamish Smile

OP posts:
Soixique · 15/01/2018 14:59

I did a MSc in IT many years ago. I applied for and received an ERC grant which covered my tuition fees. I was able to cover my living expenses from my savings (had worked FT for a few years) and a PT bar/waitressing job. (I didn't have a child though!). Others on my course took out a loan or were funded by their parents.

Norma27 · 15/01/2018 15:03

I just wanted to say go for it too. It is nobody’s business how you got a mortgage previously etc and would not maybe be in such a position now.
You are very lucky to have a dad who will do this for you but life is often about luck and you need to take opportunities such as this if you can.
Good luckxx

Daffodils07 · 15/01/2018 15:06

Take the help from your dad, he obviously wants you to have it to make yours and his grandchilds life better.
If it was one of my children and I could help I would in a heartbeat.
Good luck hope it goes well.

DerelictWreck · 15/01/2018 15:09

It’s not law! There is a very high employment rate for students of this course (85% within six months of completing it)

OP, just bear in mind those employment rates don't mean working in the related industry, it just means in employment. Anything from waitressing and bar work up to being a CEO of a FTSE 100 are all rolled in together for the stats to make the uni and course look good

crunched · 15/01/2018 15:09

You’ll have plenty of time for a part time job as well as your course, so i dont see why you’re giving up your job?

My DD1 is currently studying for a masters, this involves two days attending Uni and two placement days. She also has to schedule in a two hour one-one session with her mentor. Throw a child in to the mix and there is no way, with the on-going reading/essays on top of the above commitments, she could work in paid employment. As it is, she is able to work at weekends, long shifts in a care home, but it winds me up that some people view a masters as a bit of a doss.

Original poster
Serafina111 · 15/01/2018 15:15

DerelictWreck well, a job’s a job and I’m a pretty good waitress Grin but yeah I take your point. I really don’t think I’ll be short of job options though, apparently a lot of people secure employment (in the industry) before they’ve even finished the course and being a woman appears to be advantageous too.

crunched - quite.

OP posts:
Sofabitch · 15/01/2018 15:24

Time to work and do a masters! What planrt are people on? I'm in 8-6 6 days most weeks...a masters is seriously full on.

An alternativs might be the Ou.?

My mum paid my course fees as part of my inheritance. Go for it

Jellybean85 · 15/01/2018 15:30

What's the conversion course?? It's really not as simple as that usually. I'm doing one currently and know a fair few friends doing one.
Just make sure it really does guarantee a good job as you have to start paying loan immediately

museumum · 15/01/2018 15:32

Most people with family commitments / mature students do MSc's part time, often half the modules one year, the other half the second year and then the dissertation on it's own.

I did my MSc full time and worked evenings and weekends as well as working two jobs the year before to save up.

Norma27 · 15/01/2018 15:36

I’ve just had a thought tho if it is a pgce then my biggest regret is doing a pgce as a mother. I walked out towards the end.
Apart from that tho I believe studying is amazing. I was doing a masters and for certai. reasons couldn’t finish. I will complete in a heartbeat tho if I can now get the funds together xx