Repaying your undergraduate student loan

Coronavirus – your student finance questions answered

We put your questions from the Coronavirus and your cash Facebook group to Tom from Save The Studentopens in new window. Below is a write up of what was coated within the video.

1. Our non-public landlord continues to be charging us lease though the entire home has gone again to their mother and father, will we nonetheless must pay it?

If your contract continues to be working, you need to nonetheless be paying your lease. However, you’ll be able to attempt the next choices:

  • Try contacting the owner to ask for flexibility/decreased funds in the event you’re having problem paying at the moment. If they’ve had a mortgage vacation, or in case your payments are included in your lease, they might be keen to cross the financial savings on. Find out extra data in our article Help with lease arrears and issues with paying your lease.
  • Check your tenancy settlement to see when you have a break clause (these are sometimes out there six months right into a contract).

Note that when you have a person tenancy settlement (i.e. solely your identify is on it and your flatmates all have their very own too) you then’re solely answerable for paying your individual portion of the lease. However, if it’s a joint tenancy settlement you then’re all accountable for ensuring the lease is paid in full.

If you’ve gotten a guarantor, they are going to be answerable for paying the lease in the event you’re unable to. If you’re apprehensive you received’t have the ability to make lease funds, speak to your guarantor and landlord to make sure they’ll have the ability to do it for you.

2. I used to be finding out overseas however I flew house after I heard flights had been being stopped, the place do I stand, money-wise?

If you’re nonetheless persevering with your research remotely, the Student Loans Company have mentioned that tuition charges and residing value loans will nonetheless be paid “as planned”.

The Student Loans Company (which covers England, Northern Ireland and Wales) have mentioned that each one journey grant requests can nonetheless be submitted and processed as regular so long as you’ve spent at the least 50% of your time period overseas.

For Scottish students, SAAS have additionally confirmed that you need to nonetheless have the ability to declare for the price of your return flight, even in the event you’ve left your course early.

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3. I used to be let go from my pub job when the virus hit, however earlier than furlough was introduced, what ought to I do?

The Coronavirus Job Retention Scheme has now prolonged the deadline to nineteenth March, by which level you have to have been employed and on the corporate’s payroll.

Even in the event you had been let go earlier than this was all introduced, the federal government has explicitly mentioned that employers can rehire and furlough workers who had been let go attributable to coronavirus.

4. My student loan hasn’t arrived but, are funds being affected by COVID-19?

Student Loans Company (England, Northern Ireland and Wales) and SAAS (Scotland) have mentioned that each one funds will go forward as regular, no matter whether or not or not your uni has made different preparations for educating.

Remember that the third cost of the yr doesn’t come by means of till your college’s summer season time period formally begins. If you’re not sure when that is, test in your Student Finance account or Google “[your uni name] term dates”.

In Scotland, student loan funds arrive month-to-month, paid on the seventh of every month.

5. My college is without doubt one of the few who hasn’t waived our lodging charges for uni halls, what can I do?

If your contract continues to be working and no different preparations have been made by the uni, you have to pay your lease (not doing so might have opposed penalties for you).

However, student teams throughout the nation have efficiently protested towards their universities’ choices to proceed charging lease. Get in contact with representatives at your student union to search out

Government ministers throughout the UK have written to universities and lodging suppliers asking them to be sympathetic to students, whether or not it’s as a result of they’re making an attempt to interrupt their tenancy agreements early or want to increase it past its present time period as they’re unable to return house.

You might additionally communicate to your uni instantly in the event you’re experiencing specific monetary difficulties, there are sometimes hardship grants out there for students. This will rely in your specific college, nevertheless.

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6. My post-grad loan solely covers my tuition charges and I can’t go into my part-time job as a result of I dwell with weak relations – is there any assist I can get?

Speak to work about the potential for being furloughed. Find extra details about the Coronavirus Job Retention Scheme right here.

If that’s not attainable, you may be eligible for statutory sick pay (SSP).

Unfortunately, full-time students are often ineligible for Universal Credit. You may nonetheless have the ability to declare Universal Credit beneath sure circumstances, for instance in the event you’re answerable for kids beneath 18 or live with a incapacity.

There are extra particulars about claiming UC as a student on the GOV.UK web site.

It may be a good suggestion to talk to your college about hardship funds.

In Scotland, the federal government has put in place a £5 million bundle of emergency help for students in greater/additional schooling struggling on account of coronavirus.

7. I’m purported to be beginning college subsequent yr, ought to I proceed with my utility as regular? What about reserving my place in halls?

If you’re making use of to start out in September 2020, you will have to have already submitted your utility (in any other case you’ll want to attend till clearing opens in the beginning of July).

UCAS has mentioned that college purposes will nonetheless be processed as regular, so in the event you nonetheless wish to go to uni, don’t cancel your utility. UCAS have given students an additional two weeks (till the nineteenth of May) to finalise selections.

As for lodging, every uni could have its personal coverage – however we’d advocate reserving a spot in the event you can, as presently there are not any official plans to not return in individual in September.

8. I’ve been furloughed from my retail job, however because it’s solely part-time the 80% doesn’t cowl a lot, what ought to I do after I can’t pay my telephone invoice?

Check to see in case your telephone contract has expired – if that’s the case, you’ll be able to cancel at no further cost and both dwell with no telephone, swap to a less expensive SIM solely deal or attempt pay as you go for some time.

You may name your community to elucidate your circumstances and attempt to come to an settlement for decreased funds or cost holidays.

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9. I already utilized for subsequent yr’s student finance, however my mother and father’ earnings has modified due to all this coronavirus stuff, what ought to I do – I feel I may be entitled to a much bigger loan now.

You can apply for what’s often known as a Current Year Income Assessment, and might even use it for the ultimate cost of this educational yr.

Usually, your student finance entitlement is assessed in your mother and father’ earnings from a yr or two in the past, however you’ll be able to ask to be assessed on this yr’s earnings in the event you assume their earnings has dropped by at the least 15%.

Your mother and father or guardians might want to submit proof of earnings and on the finish of the tax yr (subsequent April) to point out how a lot they really earned throughout the yr.

If it turned out to be greater than the quantity they projected (and due to this fact you had been entitled to a smaller loan than you got), you will have to right away repay something you had been overpaid. You can work out a compensation plan with the Student Loans Company.

Note that in Scotland, in contrast to in the remainder of the UK, upkeep loans are calculated in brackets quite than particular family incomes. You can solely apply for reassessment in case your earnings has dropped into a special band.

Find the bands beneath:

Young students*

Household earnings Bursary Loan Total
£0 to £20,999 £2,000 £5,750 £7,750
£21,000 to £23,999 £1,125 £5,750 £6,875
£24,000 to £33,999 £500 £5,750 £6,250
£34,000 and above £0 £4,750 £4,750

Independent students**

Household earnings Bursary Loan Total
£0 to £20,999 £1,000 £6,750 £7,750
£21,000 to £23,999 £0 £6,750 £6,750
£24,000 to £33,999 £0 £6,250 £6,250
£34,000 and above £0 £4,750 £4,750

*single students beneath the age of 25 with no dependent kids
**students over the age of 25

10. Is it attainable to obtain a break on student loan repayments while on furlough or when my earnings is decreased due to coronavirus?

Student loan repayments are income-contingent, so that you solely should make repayments once you’re incomes over the brink. If your earnings drops, then your student loan repayments must also get smaller.

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