Student Fees & Maintenance Finance Loans - when/how repayable
RandomMess · 06/03/2016 17:30
In brief I know Fee loans are repayable once the student is earning a certain amount which is circa £25k pa I believe (anyone know the figure and I think the government have backed down and it's not going to be inflation linked after all )
Is it the same threshold for Maintenance Loans and over how many years is it payable back over?
Student will start this October!
boys3 · 06/03/2016 18:04
£21k threshold, all lumped in together - fees and maintenance.
Good lot of info here
RandomMess · 06/03/2016 18:06
Trying to decide how much help to try and afford to give DD1 - always more tricky when she has 3 younger siblings to consider!
jeanne16 · 06/03/2016 18:10
Repayment starts at 21K and that figure is not changing. I hope you do realise that interest is charged on the loan. It is quite complicated. Interest is RPI plus 3% while still a student, then after graduating it is charged at RPI if earning less than 21K. Interest is then RPI plus between 1% and 3 % on a sliding scale between 21k and 41k after which it is RPI plus 3 %. The loan is written off after 30 years if any is remaining. Interest clocks up rather fast so a 60K loan will turn into over 100k by the end of the loan.
RandomMess · 06/03/2016 18:18
Oh yes Jeanne I have one of the original student loans - still don't earn enough to have start repaying it!!!!!
DD technically lives with her Dad so will get full maintenance loan however the figures reckon if she lived with us we'd have to pay out £45 per week to support her that would be a massive impact on us and our other DC even our mortgage is relatively low.
boys3 · 06/03/2016 19:25
Also worth remembering the maintenance loan amount is based on household taxable income as opposed to gross. Plus there is also a small (just over £1k) offset for each remaining dependent child.
Could well be worth encouraging a job in the long summer break etc. DS1 earned around £6k last summer, and another £1k for a couple of weeks work in the Xmas break. Obviously some of that was spent at the time, but as far as I can tell he saved quite a large chunk of it. Also a big help in terms of future employability once graduated.
RandomMess · 06/03/2016 19:35
Oh she already works, has applied for 2 bursaries that she'll hopefully get.
I did look to see if it was gross or net but couldn't see the details on summary pages - have to say there isn't much difference between gross and taxable tbh, nor the disallowable for the other DC
AndNowItsSeven · 06/03/2016 19:51
It would be better to give her nothing and pay any money into an ISA instead for a house deposit.
Student loans and the best deal anyone can get in borrowing terms.
BestIsWest · 06/03/2016 22:38
It's worth knowing how much the actual repayments will be when your u do start working. For example, if you earn £25,000, you only repay £30 a month and the interest is only charged on a small amount. There is a scale of repayments somewhere, I'll see if I can find it.
BestIsWest · 06/03/2016 22:41
Scholes34 · 12/03/2016 14:36
Yes, save any money you don't need to give her and save it for when she really needs your help, such as towards a ridicously large deposit for a house. If she subsequently doesn't need your help, use the money you saved to go on a round the world cruise.
RandomMess · 12/03/2016 16:43
At the end of the day we can't afford £45 per week either to give her or save on her behalf!!! When she moves out to go back to her Dad's house we will already be ££££ down in Child Benefit and maintenance and all we'll be saving on is her share of the food bill and the £6.50 pocket money she gets per week. Oh I suppose a slight saving on hot water too!
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