What can be done about a broken maintenance loan system ?

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geographyuk123
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hezzlington
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(Original post by lee1999wright)
I look forward to university this year, however, the lack of availability to a sufficient maintenance loan is forcing me to have second doubts about whether I can actually afford university.

The system is unfair to middle income families. Low incomes get all the funding(which is required), high incomes can afford to support their child's maintenance and middle incomes are stuck in the middle, often as sole earners with a high mortgage, the government expects parents to pick up the bill between what they receive and the maximum maintenance loans . Sometimes, household income does not represent the full story and cannot dictate what support students receive while at university.
What can the conservative government do in order to ensure the maintenance loan system works for everyone, not just low income households or a privileged few ?

Thank you.
What about high income families that refuse to support their child at university?
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Dalek1099
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(Original post by lee1999wright)
I look forward to university this year, however, the lack of availability to a sufficient maintenance loan is forcing me to have second doubts about whether I can actually afford university.

The system is unfair to middle income families. Low incomes get all the funding(which is required), high incomes can afford to support their child's maintenance and middle incomes are stuck in the middle, often as sole earners with a high mortgage, the government expects parents to pick up the bill between what they receive and the maximum maintenance loans . Sometimes, household income does not represent the full story and cannot dictate what support students receive while at university.
What can the conservative government do in order to ensure the maintenance loan system works for everyone, not just low income households or a privileged few ?

Thank you.
The idea that middle income families can't afford to support their students is in most cases utter nonsense.

Low income families can get as much as about £80 a week(child tax credit + child benefit) per child support from the Government and then once the child finishes college and goes to University they lose that money.How come low income families are losing as much as £80 a week and middle income families can't seem to afford anything for their children?

The comment about a high mortgage is laughable as rent, which tend to be paid more by low income families, is usually much higher than mortgage repayments.You are literally telling us how much better off you are than low income families.

If you are a true exception you might be able to get support from the University.
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Klix88
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(Original post by lee1999wright)
I look forward to university this year, however, the lack of availability to a sufficient maintenance loan is forcing me to have second doubts about whether I can actually afford university.

The system is unfair to middle income families. Low incomes get all the funding(which is required), high incomes can afford to support their child's maintenance and middle incomes are stuck in the middle, often as sole earners with a high mortgage, the government expects parents to pick up the bill between what they receive and the maximum maintenance loans . Sometimes, household income does not represent the full story and cannot dictate what support students receive while at university.
What can the conservative government do in order to ensure the maintenance loan system works for everyone, not just low income households or a privileged few ?

Thank you.
Extending SF would require either cuts or increased taxation to raise the necessary funds. Don't see how that would happen in the general population when the NHS is struggling - not a vote-winner.

So you're looking at cuts within the student body. The government could fund it by abolishing an automatic right to Tuition Fee Loan + minimum Maintenance Loan for all students, by introducing a household income earnings threshold above which no SF will be given and parents will be expected to shoulder the entire burden of funding their kids through uni. However, that would potentially just move the inequality from middle-income students to high-income students. Plenty of households look good on paper but have huge outgoings/debt burdens and effectively don't have the money to spare. Some parents will simply refuse to fund their kids, thinking it's not their problem.

A fairer system would use not only a measure of household income, but would also take into account household outgoing like rent/mortgage, and be based on something closer to disposable household income. But again, that just increases the cost of SF to the state, meaning cuts elsewhere.
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geographyuk123
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(Original post by hezzlington)
What about high income families that refuse to support their child at university?
Exactly, household income does not show the full story, it cannot solely be used to dictate how much people are entitled to.
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geographyuk123
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(Original post by Dalek1099)
The idea that middle income families can't afford to support their students is in most cases utter nonsense.

Low income families can get as much as about £80 a week(child tax credit + child benefit) per child support from the Government and then once the child finishes college and goes to University they lose that money.How come low income families are losing as much as £80 a week and middle income families can't seem to afford anything for their children?

The comment about a high mortgage is laughable as rent, which tend to be paid more by low income families, is usually much higher than mortgage repayments.You are literally telling us how much better off you are than low income families.

If you are a true exception you might be able to get support from the University.
Used to live in Thurrock,Essex (an "deprived" area) - most of my friends there cannot wait to receive their loan, with many saying they'll be "living the life of luxury"
Meanwhile, now I live in Benfleet, Essex (an "affluent" area) - most of my friends here are dreading the cost of uni as their parents cannot support them financially like the government expects them to and their loan is significantly less.
Uni support is often not an option due to the household income.
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geographyuk123
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(Original post by Klix88)
Extending SF would require either cuts or increased taxation to raise the necessary funds. Don't see how that would happen in the general population when the NHS is struggling - not a vote-winner.

So you're looking at cuts within the student body. The government could fund it by abolishing an automatic right to Tuition Fee Loan + minimum Maintenance Loan for all students, by introducing a household income earnings threshold above which no SF will be given and parents will be expected to shoulder the entire burden of funding their kids through uni. However, that would potentially just move the inequality from middle-income students to high-income students. Plenty of households look good on paper but have huge outgoings/debt burdens and effectively don't have the money to spare. Some parents will simply refuse to fund their kids, thinking it's not their problem.

A fairer system would use not only a measure of household income, but would also take into account household outgoing like rent/mortgage, and be based on something closer to disposable household income. But again, that just increases the cost of SF to the state, meaning cuts elsewhere.
It's a very complicated situation I understand as there is not a endless pit of money.
Maybe a loan based on disposable household income would be a good idea.
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Klix88
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(Original post by lee1999wright)
It's a very complicated situation I understand as there is not a endless pit of money.
Maybe a loan based on disposable household income would be a good idea.
That's definitely a fairer way of doing things, but it carries significant issues.

Firstly, there's no easy way of assessing outgoings. With income, SF just cross-check with HMRC and investigate the minority of applications where the figures differ. However, there's no central check for outgoings. If you require parents to submit things like mortgage/rent statements, they would have to be cross-checked with many thousands of different organisations such as mortgage providers, private landlords, property companies and local councils. The cost of doing that for every application would be prohibitive.

Secondly, wealthy families are more likely to have access to the kind of accounting and financial advice which would hike their kid's entitlement with enough canny book-keeping. That could potentially result in students from higher income households getting more SF than middle-income students, actually increasing the inequality whilst making the middle income student's funding no better.

It's a very knotty issue.
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AishaKaffir
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These dirty poor people should work instead of contaminating the elite organisations.
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999tigger
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(Original post by lee1999wright)
It's a very complicated situation I understand as there is not a endless pit of money.
Maybe a loan based on disposable household income would be a good idea.
Not really as that would just encourage families to spend on themselves and limit disposable income. At least they have the income in the first place against poor families who do not. To pay middle class families more means paying others less or taxing other people more.
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Tiger Rag
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Can someone please tell me where the extra money is going to come from for this?

Also, if we're going to look at outgoings, where's the extra money to employ people to look at those things to come from? It's not a 5 minute job.
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geographyuk123
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(Original post by Klix88)
It's a very knotty issue.
Yep, there are problems with either it being based on household income or disposable income and so that's why I asked what could be done
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CoolCavy
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i dont understand it either
at the end of the day it's a loan
people should be able to apply for what they need
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Tiger Rag
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(Original post by CoolCavy)
i dont understand it either
at the end of the day it's a loan
people should be able to apply for what they need
The pot isn't bottomless.
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geographyuk123
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(Original post by CoolCavy)
i dont understand it either
at the end of the day it's a loan
people should be able to apply for what they need
Exactly !
:ta:
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geographyuk123
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(Original post by Tiger Rag)
The pot isn't bottomless.
Agreed, but something has to be done to make sure the system is fair for all
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geographyuk123
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(Original post by AishaTheKafir)
We need to stop giving money to those children.
Those children you speak of will be contributing back into the economy, on average, more than those children who do not or cannot attend university.
Education should be a right for all, not just the privileged few, it is in the country's interest after all.
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