Student Funding - means testing

[taffinnorfol]

A big chunk of the student loan (25%) is means tested. A 19 year old family friend has been abandoned by his separated parents and he lives with his sister. He needs full funding to take up his place at university but has been told that, as his parents earn more than �25,000 p.a. (even tho they live in other parts of the country and do not maintain him!) his loan will be severely reduced. This means he can't afford to go to university!
HELP! has anyone got any ideas?

[Pigletion]

He needs to fill out that form that says he is dissociated from his parents finances. My Mother made me sign one, so I was not affected by my Father's debts, I'm sorry I don't know the name of it!

Surely if he can prove he doesn't live with them, get any money from them they have to reassess the situation. Don't take no for an answer. I know the loans company are a pain, but if you're over 18 it shouldn't matter what your parents do, it should be his means they are testing, it is him after all who has to pay it back (I know the loan company don't necessarily see it this way..). I'm sure if you're parents are separated that makes a difference, it did for my friends who lived with one parent, but the other was still around. I think it depends on how you fill in the form...

Also, university's have hardship grants and loans, a lot of my friends got thousands of pounds (although they didn't always go to the most deserving).

Also, unless things have changed, you have to fill in a form saying what contribution your parents will make etc. and they have to fill in their salaries etc. If they are not living with him, their information would not have been passed to the student loans people.

[factor-fiction]

I'd be interested to know if you get anywhere with pigletion's suggestion. As a parent of a student I sympathise with you but I think the SLC would need a lot of convincing- couldn't every student use this to claim they were completely independent of their parents finances.

[taffinnorfol]

This is a REAL bucket of worms! I have now established that students under 25 are normally considered dependent on their parents but there is an irreconcilable estrangement rule. However, these are the terms:-

You will normally only be considered irreconcilably estranged from your parents if you have had no contact with them for at least a year prior to the start of your academic year.

You will not be able to claim irreconcilable estrangement just because:

� you do not get on with your parents;

� you do not live with them;

� your parents do not want to give details of their income; or

� your parents choose not to provide you with financial support.

Furthermore, if Student Finance England find out that there is subsequent contact with the parents during the period of study, they would claw-back or even take action if they believe there has been a fraudulent claim.

Hard b****ds. Our friend has now rejected his offer on economic grounds and society has lost his talent. SAD!

Thanks for the comments guys!

[taffinnorfol]

I am seething about this. Luckily I retired early and so have a very small income (having cleared mortgage and debts before I retired) and small outgoings despite considerable assets.

My own two sons could therefore go to University on unabated student loans - how ironic is that because I have a larger disposable income after outgoings than those who are still working and paying off their mortgage and debts and yet I can claim the subsidy but they can't! Simply because of the way I have organised my finances!

A badly conceived scheme methinks - maybe by the same person as the one who devised the MP's allowances scheme???!!!

I feel very sorry for those from middle earning families with high outgoings.

[Pigletion]

There are lots of options open for funding both from the government and at university (http://www.direct.gov.uk/en/EducationAndLearni ng/UniversityAndHigherEducation/StudentFinance /index.htm). Also, he can work as well.

However, if he has already given up his place he can apply again next year, when he will be in a better position.

Also, Uni isn't everything. I have done four degrees (only the first at tax payers expense!) and it's still hard to get a job without experience. If you're smart, you'll go far whatever. Obviously some occupations do require a degree, but he could always use his year off to get a job and build contacts in the industry he wants to work in so he will earn money and increase the chances of getting valuable vacation work (as in get experience that will help him get a job when he graduates, it really helps, particularly if jobs are scarce).

Also, a year off may give him time to work out what he really wants to do and get things in order. If he stays estranged from his parents, then his loan prospects will be better next year. If not, then at least he wil have made up with them.

Try and encourage him to turn the year off into a valuable gap year and use the time to decide what will be the best next step for him for the future. It's really hard to know what you want to do and sometimes going to Uni just puts off the decision for a while! Or like me, you think you want to be a scientist, do all the degrees to make it your career then realise you can not face getting up in the morning to do that every day!

Hope it works out, at least he has you interested in him

[Pigletion]

Also, has he definitely turned his place down? As some unis will let you defer your place for a year if you have a change in circumstances...