Student Finance England

[appyaug]

Can I just check with someone that in completing the SFE application for undergraduate loans, as a parent, I put down my taxable income (presumably 2022-23 gross salary minus personal allowance and state sector pensions contributions) for them to calculate dd's student loan?

They want to know the entire gross salary, including your personal allowance. They can and do check with HMRC (they did with one of my forms, and it transpired that another department had given HMRC incorrect information, which is how I know). Workplace pension deductions don't, I think, count for loan calculation purposes, but private contributions do.
My own income never reached the taxable threshold when my DC applied for loans, but it's always included been as part of household income.

I think it’s just gross minus pension contribs ie you can’t deduct personal allowance, as that is technically taxable just at the 0% rate.

Can I ask on this topic, is it also things like tax credits or the income used for them? Thanks

Question
my daughter has come into some inheritance around £30,000 she will go to uni to study law her career path might be that of a high achiever
should we use that money to pay her course fees and thus not have these high interest student loans (plan 5)

That money is something that she can use any time, for anything, in addition to money from sfe that she can only access due to attending university.

If she (not sure what this 'we' is, if the bequest was to her? The student loan is very definitely to her, or rather, to the university on her behalf, no-one else's) decides to spend that inheritance on her tuition fees, that is her decision, but if she does, that money is gone and cannot be retrieved if she later on has need of such a lump sum.

You and she do understand the basis on which the loan is repaid?

My children respect their parents and invite our input, it’s why they are high achievers ,
we are always a we and we will always be a we … they make informed decisions but they at this point in their life seek our input on those decisions add in she is 17 and needs guidance still

if she is on 150k a year in say 6-7 years post grad she will be effectively paying 15-18k a year interest and repayments on an initial 30k loan that’s going to grow quickly ..

seems to me the best investment for a likely very high achiever in life is to utilize those funds to start life with no student debt

@Tirangapete, please read Martin Lewis’s explanation of student loans and repayments. You will see it makes sense to not use the £30k towards fees.

https://blog.moneysavingexpert.com/2024/03/martin-lewis--five-things-everyone-should-know-about-english-stu/

No definitely not. My Dd has a similar amount and Will hopefully use it for a house deposit instead. She took out the full loans available.

@appyaug
Consider using the £30k as a deposit on a property post graduation.