Post-18 Option: What parents need to know
Each cycle opens in February or March of Year 13. There is a window of approximately 10 weeks to complete the application to ensure monies are paid at the start of a University course. Pupils need their bank details (hence the need to open bank accounts before application), National Insurance Number, passport and details of their first choice course.
Parents are also emailed and have to set up an account. There is an option for parents not to declare income at which point it is assumed the parents are above the higher threshold of household income for assessment purposes. Or alternatively copies of certified accounts and P60's (statement of tax and earnings) for the previous year need to be provided for parents. If starting University in Autumn 2023 then the P60 issued around April 6 2022 will be needed.
Students are entitled to two sums of money (figures correct as of Jan 2022)
Students begin to repay in the April after graduating and repay until the debt is repaid or after 30 years if the debt has not been paid in full it is written off. Over payments or lump sum payments can be made but it may not be wise to do so we suggest you ask a financial advisor how best to proceed in regard to this.
Most Plan 2 students (which is the plan our current Year 12 and 13 will be applying under) will repay 9% of earnings above a Gross salary of £27,295. So, if someone earns £30,000 p.a. they earn £2,705 above the threshold and would repay £243.45 per annum or £20.28 per month. Over 30 years this means paying back £7,300 on a potential loan of nearly £60,000.
For your information mortgage lenders also consider monthly outgoings when looking at the affordability of loans so this will be taken into account with any such calculations and offers of loans.
Ideally, pupils must open a bank account before applying for finance and then when registered at university, they inform their bank who can switch their account to a student account and they can then get the associated benefits.
Money Saving Expert is an excellent source of further information in regard to the best bank accounts for students and also information on student loans.