Question about Student Finance

[Decorhate]

Up to now my kids have just applied for the minimum maintenance loan so I’m not familiar with the process where you declare parental income. From what I can find out, it seems you provide income details for the second last tax year. So for the 22/23 academic year they will base the amount awarded on the parents 20/21 income, not 21/22?

Does anyone have experience of what happens when income fluctuates quite a bit? Say a student qualified for the full loan in one year, based on parents 20/21 income, what happens if the following year the 21/22 income declared is significantly higher? Obviously the student would receive a lower amount in the next year but is there any danger that they would have to repay some of the first year loan too?

Thanks!

No they wouldn't.
If your income falls, you can ask for an In year assessment. (It must be 15% less). You provide updates during the year, and a final declaration in June.Rhen they also use this for the following year.

Thanks. It seems a bit strange that if you ask for an in-year assessment they will recalculate based on the final figure for that year. But you could apply knowing your current salary is higher than the previous year & you don’t have it clawed back.

We're in exactly that position. DH self-employed on minimum wage trying to get a business going. I worked P/T as a teacher. DD1 went to university, got almost the full loan. Then DD2 went 2 years later and again got almost the full loan. Since September 2020, DH has been in a decent salaried job, although I have cut my hours since September 2021. We haven't had to report either to Student Finance yet.

DD1 has graduated and is now doing a funded PhD so we don't need to worry too much about her. However, DD2 will have 2 years of her integrated Masters course where we need to pay much more, so we're saving now in anticipation of the next 2 years. DD2 has spent most of what she has received so far on rent and food so there's no way anyone can claw it back. Please don't worry.

Thanks @Malbecfan Tbh unless we ask for an in-year assessment (which I’m nervous about) ds2 would probably be in final year before he qualifies for a higher amount as the drop in income won’t be till later this year.

Seriously @Decorhate keep quiet, but if you can, save a bit in advance of when you will have to pay more. Good luck!

Yes they will ask for it back. It is exactly what happened to us. DH unexpectedly earned some overtime after we’d done a CYI and they made us give back £750 - we could either pay it or have his loan reduced the following year.