Student Loan Confusion

[Bayum]

I've heard that my student loan should be paid within the next 2 weeks...

And they said it was income based... So, I'm guessing that it's a Maintenance Grant?

But, my confusion is... I don't get what students have to pay back...

I know they pay the loan back... But do they pay tuition fees back ?

Do they have to pay the maintenance grant back ?

Cos my mate says you have to pay everything you apply for back... But the finance site says otherwise...

I'm confused!

 

[yorkie]

The loan goes to pay tuition fees surely (plus other things, if there's any left), and yes it has to be paid back.

By definition, a grant does not have to be paid back.

 

[Bayum]

Well... You apply for the Tuition Fee Loan... And erm, you can also apply for an income Maintenance grant, and then a general loan as well I think...

But, I don't know what you pay back =/

 

[Swift-Deere]

Grant is not payed back at all

and loan is only paid back after university when your are earning £15,000+
and if not already paid off in 15 years it is wiped of completely

 

[Mojo]

Tuition fee loan goes straight to the University - you never see any of this cash in your account.

If you have provided paperwork for means testing then, depending on your income you get a Maintenance loan + grant or just a Maintenance loan. The Maintenance loan amount will be higher if you don't get a grant but they'll also take some off depending on your household income.

You pay back all loans (but not grants), so what you pay back will be your Tuition fee loan (you never actually see this money) + Maintenance loan + Interest.

 

[Bayum]

I don't think I applied for a loan though... I just applied for a grant I think... And when I rung them up as well, they were saying about my DSA, and then he said that everything I had applied for was only income based... So, i'm confused... And I have no other way of finding out what I applied for do I ?

 

[Mojo]

I guess you haven't had your application assessed yet, so go into your account on Student Finance England and see "Complete Application Summary" which says what loans you applied for and then see "Entitlement Summary." If it says "I want to apply for more, taking into account my household income" then you will get a grant if you're allowed.

I can't see any reason why you wouldn't want a loan, even if you don't need the money. If I said to you I'd give you £114 per year for looking after some money for me and promising not to spend it, on the condition you pay it back in 3 years, then you'd accept wouldn't you?

 

[Old Timer]

Bayum
Have you considered speaking to someone at the University, or to the Students Union there ?

I found the Student Finance people to have been very helpful as to what we were entiteld to for my eldest lad, even though the "system" at that time was completely disorganised and chaotic.

 

[Swift-Deere]

, even though the "system" at that time was completely disorganised and chaotic.

No change there then lol

 

[Tom B]

SLC are bad; SFE are worse.

As Mojo etc have said - grants don't need repaid, loans do. The tuition fee loan is just that, a loan.

 

[Bayum]

Hmmm ok then. After speaking to mojo about it last night though... I'm going to have to ring them up anyways.

My mum and I applied for a maintenance grant, but it's saying it's coming through as a maintenance loan =/

 

[mumrar]

My mum and I applied for a maintenance grant, but it's saying it's coming through as a maintenance loan =/

Could that not be because you don't qualify for a grant? They could be saying, based on the info they have, we do not consider you in dire need of this money, but if you like you can have it, but you'll have to pay it back later. It's all to do with an individuals circumstances.

 

[dan_atki]

My mum and I applied for a maintenance grant, but it's saying it's coming through as a maintenance loan =/

I believe you can't have a maintenance grant by itself - it is, in effect, a part of the maintenance loan which you do not have to pay back.

E.G. Student A is entitled to a full loan of £4,500 per year.
Student B is from a family not as well off as Student A's. He is also entitled to £4,500 a year which is made up of £4,000 loan and £500 grant.

(Obviously the figures have been rounded for simplicity and may not match your circumstances).

You sound like you are aware what has come through as what so I'm assuming you have either your Financial Notification or Payment Schedule. Both will tell you how much loan and grant you are getting. The Notification breaks down the figures and the Schedule tells you what's paid when.

 

[Tom B]

You can get a grant without taking a loan out if you qualify.

 

[Bayum]

Could that not be because you don't qualify for a grant? They could be saying, based on the info they have, we do not consider you in dire need of this money, but if you like you can have it, but you'll have to pay it back later. It's all to do with an individuals circumstances.

I know what it's to do with... But based on the fact that the guy on the phone said I had qualified... And the money was being transferred this week at some point... AND coupled with the fact that my families income last year, was less than my friends who got the full amount...
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I believe you can't have a maintenance grant by itself - it is, in effect, a part of the maintenance loan which you do not have to pay back.

E.G. Student A is entitled to a full loan of £4,500 per year.
Student B is from a family not as well off as Student A's. He is also entitled to £4,500 a year which is made up of £4,000 loan and £500 grant.

(Obviously the figures have been rounded for simplicity and may not match your circumstances).

You sound like you are aware what has come through as what so I'm assuming you have either your Financial Notification or Payment Schedule. Both will tell you how much loan and grant you are getting. The Notification breaks down the figures and the Schedule tells you what's paid when.

I've not actually heard anything as of yet... Because I sent in everything all at once... So, they said I don't get anything through the post, I just get the money transferred and that's that. And obviously my DSA goes to the university...
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You can get a grant without taking a loan out if you qualify.

That's what I thought...

Cos like I said - that's what I applied for... But when I rang them up the other day, it all just confused me!!
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Rung them up again today...

They've ****ed things up yet again...

I was told on Monday, that everything had been recieved last Thursday... So by this Monday, I should have been paid. When I rang them up today, to ask what the application was for etc, they said there was some confusion as I had applied for a grant, but not sent the something 60 that my mum has... So they presumed I wanted the loan... Are they even allowed to do that ?

Secondly... When we sent off all my stuff back in June, they sent me an email telling me what they had recieved etc, and everything was in there, except a signed declaration form - so I had to send another with my Birth Certificate again.

But now, they're telling me they basically have nothing that they said they had recieved, and that i'm not gonna get anything back from them for at least another 6-8 weeks still from when I send it off.

 

[Tom B]

P60. Yes, they're naff; you ought to have been told to send the P60 in, though...

 

[Bayum]

I was, and we did. That's what im saying - I got an email, saying all my things on the finance site had been updated... And it said they had recieved everything they neede, parental details and my mums form etc and her evidence, the only thing they were miessing as a 3rd Declaration form...

And then yesterday, he told me they hadn't actually recieved it all, and he didn't know why it said they had on the site!

 

[Mojo]

Who wants to bet that if this system was for old people who needed money, then they'd just give the money away to applicants without keep going back to them as it's been such a farce.

 

[Spaceflower]

Everything you apply for is income based but if youre under 25 or something this is dependant on your parents income, not yours.

For example, below a certain income threshold you are entiltled to the full tution fees (non repayable) and full loan (repayable). Any additional grants available, will again, be income dependant. (i.e. dependant on whether you can get em or not).

The more your parents earn, the less help you will recieve towards tuition fees AND the less the student loan amount available to you.

If mommy and daddy are rich you will be entitled to nothing, but then you will probably own the university anyway.......

 

[Mojo]

If mommy and daddy are rich you will be entitled to nothing, but then you will probably own the university anyway.......

I'm hardly rich; both my parents take home below the national average wage yet I'm not entitled to anything. If I was in a single parent household and had one very well off parent then I'd get the money!

Maybe I should ask my parents to get a divorce so I get more money?

 

[dan_atki]

Everything you apply for is income based but if youre under 25 or something this is dependant on your parents income, not yours.

For example, below a certain income threshold you are entiltled to the full tution fees (non repayable) and full loan (repayable). Any additional grants available, will again, be income dependant. (i.e. dependant on whether you can get em or not).

The more your parents earn, the less help you will recieve towards tuition fees AND the less the student loan amount available to you.

If mommy and daddy are rich you will be entitled to nothing, but then you will probably own the university anyway.......

Everyone (regardless of household* income) is entitled to a loan for the tuition fees loan** and a maintenance loan. There is then the income assessed part of the maintenance loan which is sometimes given as a grant or part loan, part grant.

*Yes, household, not parental. This can include your income if you receive any and are married/do not live at home/have children - even if you are under 25.

**I have never seen anything to suggest that under a certain threshold you do not have to pay back the full amount of tuition fees.

 

[Spaceflower]

I'm hardly rich; both my parents take home below the national average wage yet I'm not entitled to anything. If I was in a single parent household and had one very well off parent then I'd get the money!

Maybe I should ask my parents to get a divorce so I get more money?

Yes, that's an idea.
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Everyone (regardless of household* income) is entitled to a loan for the tuition fees loan** and a maintenance loan. There is then the income assessed part of the maintenance loan which is sometimes given as a grant or part loan, part grant.

*Yes, household, not parental. This can include your income if you receive any and are married/do not live at home/have children - even if you are under 25.

**I have never seen anything to suggest that under a certain threshold you do not have to pay back the full amount of tuition fees.

It may have changed since I applied for mine, but back then it was dependant on household income (yes, thats what i meant) and above a threshold I believe you weren't entitled to help with course fees.
Yes you need to pay back the loan regardless of household income when you take it out, I'm not disputing that. The tuition fees i do not pay back. Actually I was just trying to help....:roll:
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.....well, at least I'm keeping this thread bang on topic.

 

[yorkie]

Am I the only person to be concerned that there may be far too many people going to University who are not really going to go on to get a decent enough job to actually repay the loan?

There's not enough people doing practical jobs, yet there's no end of people training to do things like media at University, yet some of them can't even punctuate correctly.

IMO this Government are obsessed with sending as many people as possible to Uni. Employers now look for experience and personal skills above anything else these days I believe.

I wonder how much of the student loans that are being issued now will have to be written off? A rather high percentage, I fear.

 

[Spaceflower]

Yorkie, that's not what the problem is at all. Its just one big money spinner. For the University, the town, etc. Then you leave, your head full of boolox having spent the last 4 year learning how your family is so, so unfortunate with a debt on your head, the money of which never even belonged to you in the first place (you were just the middle man between the government and the town's business. Who cares .......
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It will never change. There's too many greedy fat cats waiting in the wings ready to, cheat, steal and extort all money and policies good or bad.
Needless to say, who cares if the money doesn't get paid back? you? me? Hell, I wish I could......

There is a growing number of 'i think im so important but am just a stuck up bitch' jobs out there though. A hell alot more 'supported' office jobs out there now, jobs created by red tape and fat cat bollox, more than enough to create the jobs needed for the growing number of brainwashed idiots like myself.

 

[Bayum]

Am I the only person to be concerned that there may be far too many people going to University who are not really going to go on to get a decent enough job to actually repay the loan?

There's not enough people doing practical jobs, yet there's no end of people training to do things like media at University, yet some of them can't even punctuate correctly.

IMO this Government are obsessed with sending as many people as possible to Uni. Employers now look for experience and personal skills above anything else these days I believe.

I wonder how much of the student loans that are being issued now will have to be written off? A rather high percentage, I fear.

In all fairness... You don't really need to have good english skills to do media... Certainly not the type at university... I know a load of my mates couldn't punctuate properly... And got A's for their subjects at A Level - Exam Boards problem - not theirs

And the paying back the loan thing? That's why i'm not wanting to get a loan. Although there are lots of jobs going for Counsellors at the moment, i'm not sure there are going to be any in 4 years time... And even then, I have to spend another 6 apparently, studying Psychoanalysis as that's what I want to go into... So, ya know. But who's fault is it about the tuition fees not being paid back? It's not the students... But then again - if the loan had interest attached to it, or having to pay more money back each month, or even lowering the amount you earn before you start paying back, how many people dya think would actually go/be able to goto university?

I know I wouldn't! And as Mojo said - I doubt he would be able to either!

 

[theblackwatch]

I'm in agreement with Yorkie about the number of people going to uni. A few years ago, the government decided it wanted 50% of students to go to university - now maybe I've mised another report, but does the government also think that 50% of jobs actually require a degree, and do all the subjects now offered really need one? If not, is it not just a waste of the country's resources sending so many people to uni?

I'd be interested to know why so many people choose to go to uni now, but as we are wandering a bit off the ooriginal topic, I will start a new thread on that!

 

[Bayum]

I'm in agreement with Yorkie about the number of people going to uni. A few years ago, the government decided it wanted 50% of students to go to university - now maybe I've mised another report, but does the government also think that 50% of jobs actually require a degree, and do all the subjects now offered really need one? If not, is it not just a waste of the country's resources sending so many people to uni?

I'd be interested to know why so many people choose to go to uni now, but as we are wandering a bit off the ooriginal topic, I will start a new thread on that!

Because of the Economic Crisis... Education is "free" basically, so many people instead of living off benefits - are going into education.

And many of the 6th Forms this year have been advising it as well - even people that had jobs are moving into uni -there's 3 or 4 people on my course that had good jobs, and moved into uni, because they lost them and wanted to continue their education, instead of doing nothing with their life.
--- old post above --- --- new post below ---

Am I the only person to be concerned that there may be far too many people going to University who are not really going to go on to get a decent enough job to actually repay the loan?

There's not enough people doing practical jobs, yet there's no end of people training to do things like media at University, yet some of them can't even punctuate correctly.

IMO this Government are obsessed with sending as many people as possible to Uni. Employers now look for experience and personal skills above anything else these days I believe.

I wonder how much of the student loans that are being issued now will have to be written off? A rather high percentage, I fear.

Fair enough, there are too many people going to Uni... BUT, so many jobs now, require a Degree of some sort... So, why shouldn't people go?

 

[dan_atki]

Because of the Economic Crisis... Education is "free" basically, so many people instead of living off benefits - are going into education.

I haven't racked up £20-25k of debt for myself over the last three years solely as something to stop me finding a job or to avoid living off the state! It was a carefully thought out decision with the pros far outweighing the cons in terms of my prospects once I graduate. As such I look at it as an investment in my own future.

 

[Bayum]

I haven't racked up £20-25k of debt for myself over the last three years solely as something to stop me finding a job or to avoid living off the state! It was a carefully thought out decision with the pros far outweighing the cons in terms of my prospects once I graduate. As such I look at it as an investment in my own future.

There ya go then. Another point as well. It wasn't an easy decision for me to make, to just go to uni, and come out with debt either... Seeing as I know for a fact right now, I couldn't pay it back...

 

[dan_atki]

There ya go then. Another point as well. It wasn't an easy decision for me to make, to just go to uni, and come out with debt either... Seeing as I know for a fact right now, I couldn't pay it back...

I'm not in such a position where I can be *certain* I can pay it back too. I've got to have faith in myself to get a good degree and be better than all the other candidates at a job interview. If I don't then I'll be in the same position as you until I do keep going for interviews and getting a job!

I know that if I was worried about my prospects about getting a job once I was out then it would affect my performance whilst here (and ensuring I don't get a job) and make me wish I wasn't as it could be a waste. I have to remain hopeful for myself!

It's very true what I've had drummed into me going to uni does not guarantee you a job. Many people believe it does and then they get into the real world...

Of course, it makes you a stronger applicant against someone who doesn't have a degree and also there are jobs, as you have said, that require an extent of higher education before you become eligible for them.

Uni isn't also about getting a degree. It is also about learning skills to last you a lifetime and gaining some independence. In retrospect, it certainly hasn't been time nor money wasted, in my experience. Then again, uni is only what you make it.