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Teenagers

Parenting teenagers has its ups and downs. Get advice from Mumsnetters here.

Student loans and living costs

22 replies

TeddyBare · 09/08/2010 18:27

My dniece is going in to the 3rd year of her law degree in September. She has just found out that the amount of student loan she will be getting for living costs is going down by over £1000 compared to the last two years. I've spoken to her, and she is now really worried that her budgeting doesn't work. Her loan now will just about cover her rent and utility bills, but not food, books, mobile bill, going out, internet etc.

She is getting less because dbro and sil have earned more in the last year than the years before, and maintenance loans are calculated based on parental income. Dniece thinks her parents should top up to the amount she had last year (when they didn't give her any money), although she hasn?t asked them if they will. I don't think dbro and sil can afford to top up her loan, and I'm certain they wouldn't even if they could, which dniece probably knows too. Her only contribution at home is helping out cooking and cleaning - she doesn't pay rent for the holidays or anything. She hasn?t been able to find a full time job for the summer, so she has been doing temp work and a couple of hours cleaning through the week. Her summer earnings have paid off most of her overdraft, but she is still about £500 overdrawn (on a student account where there is no interest on an overdraft). She is worried about not being able to find a job in the city she studies in, which means she wouldn't be able to afford to stay in her degree. She is also worried about taking too much time out of studying to work, as it's her last year and she will need to be working 10+ hours a week.

Is this a common problem for students? Are funds available to students whose parental income means they don't get a high maintenance loan, but who also don't get any money from their parents? I'm thinking about offering to help her out financially as I can just about afford to, but before I offer to help her I want to check if there is any scheme for students stuck like this, because it seems like a pretty obvious problem in the funding scheme.

OP posts:
elvislives · 09/08/2010 18:49

This is normal. I insisted my teens had to work and save in the holidays because the LEA decreed we could contribute so much money, and we just couldn't.

There is no funding, unless her university has any discretionary loans/ grants/ bursaries.

TeddyBare · 09/08/2010 18:54

I forgot to mention - she is studying in Wales. Are the rules the same there?
Unfortunatly her parents weren't really aware of these things so they weren't able to encourage her to save for the last couple of holidays before starting uni. Dniece ended up using her overdraft to make ends meet which means the last few holidays have been earning money to pay off the overdraft rather than save.

OP posts:
nbee84 · 09/08/2010 18:56

My dd had 3 years where her loan only covered her rent. Our income looks good on paper but when you take out our mortgage payments (we live in the South) we have very little in the way of disposable income.

We gave her what we could, when we could - but it wasn't much and she had to find a pt job.

mumeeee · 10/08/2010 00:03

DD2's laon will just about cover her rent this year. She is going into her 2nd year. We will help her towards her rent, But she has now got a job to help her do this.

TeddyBare · 10/08/2010 11:15

Thanks for the reassurance. I think I will offer to help dniece find a job, and if she still hasn't found something by November then offer to help her towards living costs. It's a rather useless system if this is happening so frequently. I wonder how this situation wasn't foreseen when the system was designed.

OP posts:
proudfoot · 10/08/2010 21:54

My loan was always less than my rent, as my parents' income was over the threshold and I was in Edinburgh where rent is quite expensive.

If she can't find a part time job in a bar, shop etc then I would suggest having a look at call centres. I worked at one and the pay was not bad (above minimum wage + commission sometimes). Mine was okay really, especially as it was only surveys rather than cold calling and the major plus point was flexibility. I always picked my shifts a week in advance and could choose how much or how little I wanted to work that week so could do less when I had a big assignment due etc. Just a suggestion!

Another (quite bad) suggestion which she could go for if she gets really desperate - open another bank account in order to get a second interest free overdraft. I know you're only supposed to take one but I did this and neither of my banks noticed or said anything...

violethill · 11/08/2010 17:46

This is a fairly common problem, because the maintenance loan is means tested, so if the parents earn too much, the student can't borrow the full amount. Which is an absolute disgrace, as it's a loan, not even a grant, so will be paid back at some point. So once again, student with parents who both work get shafted, and those with parents who don't, or only do a bit of part time work get favourable treatment.

It's shit. It's also very difficult to find student part time or seasonal jobs at the moment too.

Sorry - not very encouraging - but she;s not alone.

Naoko · 11/08/2010 21:10

Tell her to ask her uni if they have a hardship fund. This kind of situation is exactly what those are for.

At my uni (Bangor) the hardship fund actually gives a higher priority to final year students who find themselves in financial difficulty through no fault of their own, because it is expected that because they are in their final year they will be under high academic pressure and thus not able to work as much as a first or second year student. They really helped me out when life conspired against me in the final year of my undergrad degree, and to have the money worry taken away from me like that certainly helped me achieve a good degree result.

Maybe her uni will have something like that she can apply for?

mumeeee · 11/08/2010 23:20

violethill. The maintenance loan doesn't have to be means tested.When the student fills in the form you can tick to whether or not to have it means tested. DH looked at DD2's and we discovered if we had it means tested she would have actually got less money.

mumeeee · 11/08/2010 23:22

I meant to add we are not rich people and our joint income last year was actually less than it was the year before.

violethill · 14/08/2010 18:00

All F/T students are eligible for part of the maintenance loan, not all of it - an element is subject to various conditions, one of which is household income.

mumeeee · 14/08/2010 21:11

You are right DD2 gets 75%. But she would not have got any more if we had our income means tested it actualy looked like she'd get slightly less.

febel · 19/09/2010 22:29

I was told that the loan in year 3 is less cos students finish in June after exams so need less....cos then their course is finished..this is presuming yr daughter is doing a 3 yr degree course. (this was the student loan company told me that!)

febel · 19/09/2010 22:29

sorry...neice!!! It is late and my eyes are soo tired!!!

VictoriasLittleKnownSecret · 20/09/2010 07:11

She is getting less because dbro and sil have earned more in the last year than the years before, and maintenance loans are calculated based on parental income. Dniece thinks her parents should top up to the amount she had last year (when they didn't give her any money), although she hasn?t asked them if they will.

I think you'd be doing your neice a favour by pointing out that since her parents have taken a financial loss they have no one to go and get money from.... we all have to be responsible for ourselves.

Current student finance assumes parents can or will support their offspring. I cannot afford to. My wage looks good but my outgoings are huge.

mumeeee · 20/09/2010 16:36

febel. I don't think studnet loan is less in the 3rd year, It certainly wasn't for DD1

chunky90 · 30/09/2010 16:49

Her university should offer a hardship loan in the case of financial difficulty that is potentially disruptive to learning - it sounds like your niece may well be in this situation. I'm in my third year and I can't imagine having to work 10+ hours on top of all the work I have so I really feel for her. Things I can suggest that me and friends of mine do is events stewarding, events waitressing (both these jobs are flexible and you select your hours. You basically work for an agency) temping, audio typing (there are online agencies for that and the money is fairly good and again you do it on your own time) or babysitting. Evening babysitting is good as you can do your classwork once the kids are in bed.

I hope thats of some help!

olderandwider · 30/09/2010 20:57

She may have to extend her overdraft. One bank (sorry, not sure which) offers O/D of up to £2,000, so she could borrow £1,500 at whatever the rate of interest is for students. For a 30 week academic year that's £50 a week which ain't much but topped up with a bit of term time work may help her keep body and soul together.

yollanda · 14/10/2010 23:29

Please, can anyone odvice me...my son just started uni at edinburgh. Because his father's income is over 58k he's been told he's no eligible for student's loan... Well, he can borrow only £915, which is nothing. I cannot give him anything because I'm poor. Hi's father on other hand is not prepared to support him financially either. My son has got some £1000 in savings, and that's all. At present he lives on the campus where rent is high too. He thought he could get a job, but after searching constantly for the past 6 weeks still has nothing... How is he going to survive..? where else can he ask for a loan? I called banks like NatWest and Santander but they give loans only to law and medical students... Please, can anyone suggest where my son can get a loan..?

webwiz · 15/10/2010 10:23

Yollanda he needs to discuss this with the university immediately and see what they say. They can give hardship loans to stop you son having to drop out. Will his father not give some money as a loan?

This is obviously a flaw in the Scottish system as in England kids are not so financially dependent on their parents but the university must have come across it before.

ruddynorah · 15/10/2010 10:33

if she can't find a job she can use her overdarft. most banks offer at least 1000 a year. that's what most people use if their parents don't support them.

fwiw when i was at uni (10 years ago) i worked 30 hours a week. my student loan covered only my rent. i had no parental support. my dad earned £12k a year so wasn't really any to give!

yollanda · 15/10/2010 14:07

webwiz and ruddynorah, thank you so much for your time and advice, I'll pass it on to my son!

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