Student Loans

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Another minefield. Ever applied for one? The whole system is designed for our kids to get almost nothing.
We know. Assessed on the parents but not payable to the kids. Complete form PN1 (found on student finance direct) and only 28 pages long and submit.
Key points. Page 24 being section 11.
Please note: – do not forget to include your own savings income like dividends being part b9 (other investment income before income tax) (I can well imagine parents missing this part).
Should your combined income be more than £60,000 then your child will get… wait for it… nothing.
It doesn’t matter that your kid has no money. Remember, nothing.
What your child will get is an available loan. Please remember that like all loans these are repayable and with INTEREST…  which is the next sting in the tail.
So, your child living at home (disastrous) incurs £3140 times 3 years equals £9420. Then add about £3000 per annum for your kid to live like buying books, travelling to university and the odd night out. Guess what! At then end of three years your child (or children if you are unlucky enough to have more than one at university) will have outstanding student loans and debt of £18,140.
However, these loans would at all times have been attracting interest (not many parents are aware of this) and so the total outstanding loan should now be about £20,405 (at 4% interest-nothing in the mini budget on loan rates here).
Ghastly, would you agree? However, it gets worse. Suppose it takes two years to find a job: or you find one but it is low paid. Well. You guessed it.  Interest continues to be added and so when your child finally becomes in a position to pay… the loan should now be equal to I would say £23000-£25000.
So now your child faces permanent debt.  Your child (now an adult applies for a mortgage and is asked…wait for it “do you have any outstanding loans?”
My answer. Either save to go to university or try and avoid. I cannot think of any other solution.
Sorry to depress you all.

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