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    I have been made redundant and am looking to go to university this year and have some questions.

    I live alone in London so I think I should be able to get a maintenance loan of £10,702 per year. However I have paid my mortgage off so will I still be able to get the full £10702, or will it be reduced?

    Please can you confirm that I can get my income assessed on this years rather than last year’s income?

    I understand that I will need to repay 9% of my annual income above £21,000 but have some questions in case I haven’t paid if off in full by the time I have retired:

    I believe that state pension and interest on investments count towards annual income, but do defined benefits and defined contribution pensions also count? Does the 25% tax-free lump sum from each of my pensions count? And if I draw down additional money from my pension pot does that also count?

    And finally, If I go overseas, I believe that repayments are made above a local threshold, rather than the UK threshold.. I am thinking about retiring to Greece in the future and they have a significantly lower threshold – circa £16,800. If my pensions are being paid in the UK and I do not earn any money in Greece, would the UK or Greek threshold apply?
    Thanks for your help.
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    Hi Starey

    Please see the Student Finance calculator, you can put your income on this and it will show you an approximate amount of funding available. The fact you have paid off your mortgage does not affect the assessment.

    Occupational pensions (ran through your employer) do not attract student loan deductions at source.

    However, if you are in receipt of an occupational pension and also complete a Self Assessment Tax Return the occupational pension will be subject to student loan deductions if you earn above the threshold. Therefore, if the total income exceeds £16,910 in the 14/15 tax year (rising to £17,335 in 15/16) a student loan repayment will be due.

    If your finances are still going through the UK tax system, you would still be assessed based on this.

    Thanks
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    (Original post by Mark Lee - SFE Official Adviser)
    Hi Starey

    Please see the Student Finance calculator, you can put your income on this and it will show you an approximate amount of funding available. The fact you have paid off your mortgage does not affect the assessment.

    Occupational pensions (ran through your employer) do not attract student loan deductions at source.

    However, if you are in receipt of an occupational pension and also complete a Self Assessment Tax Return the occupational pension will be subject to student loan deductions if you earn above the threshold. Therefore, if the total income exceeds £16,910 in the 14/15 tax year (rising to £17,335 in 15/16) a student loan repayment will be due.

    If your finances are still going through the UK tax system, you would still be assessed based on this.

    Thanks
    Thanks for this.

    I will not be working at that point and may or may not be filling in a self assessment tax return. Just so I am clear, are you saying that the tax-free pension lump sums will be subject to student loan deductions as will any drawdown from my pension pot?

    Thanks fro your help,
    Robin

    cheers,
    Robin
    • Official TSR Representative
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    Hi Starey

    It would only be used if you are in receipt of an occupational pension and also complete a Self Assessment Tax Return the occupational pension will be subject to student loan deductions if you earn above the threshold.
    If you are unsure if you would complete this, please check with HMRC.

    Thanks
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    (Original post by Mark Lee - SFE Official Adviser)
    Hi Starey

    It would only be used if you are in receipt of an occupational pension and also complete a Self Assessment Tax Return the occupational pension will be subject to student loan deductions if you earn above the threshold.
    If you are unsure if you would complete this, please check with HMRC.

    Thanks
    Thanks Mark,
    On the assumption that I will fill in a self assessment, I still son't understand if the tax free lump sum would count income and, therefore, be subject to student loan deduction.

    I guess what I am asking is is it only taxable income that counts or is it non-taxable too?

    Thanks,
    Robin
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    Hi again

    I would advise you to check this with HMRC as they would be the ones who advise us of your income if you have to complete a self- assessed tax return.

    Thanks
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    (Original post by Mark Lee - SFE Official Adviser)
    Hi again

    I would advise you to check this with HMRC as they would be the ones who advise us of your income if you have to complete a self- assessed tax return.

    Thanks
    Thanks Mark.
 
 
 
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Updated: March 1, 2016
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