Rental income and student finance

Hi
Our daughter is going into her final year at uni in September. Up till now we have not provided income details to Student finance as our household income was above the threshold for any more than the minimum maintenance loan. However, last year both my husband and I left our jobs and now rely solely on a small rental portfolio. It seems that SF are only willing to asses our income before any mortgages are paid which will affect the outcome for our daughter significantly as we have substantial mortgages on all our properties. Does anyone have any experience of this and any advice please. We were hoping that she would get close to the full maintenance loan this year as our actual income now is so much lower. Thanks for reading.

Original post by Hsh68

Hi
Our daughter is going into her final year at uni in September. Up till now we have not provided income details to Student finance as our household income was above the threshold for any more than the minimum maintenance loan. However, last year both my husband and I left our jobs and now rely solely on a small rental portfolio. It seems that SF are only willing to asses our income before any mortgages are paid which will affect the outcome for our daughter significantly as we have substantial mortgages on all our properties. Does anyone have any experience of this and any advice please. We were hoping that she would get close to the full maintenance loan this year as our actual income now is so much lower. Thanks for reading.

Hi there, In order for the team to assess the funding the student will be entitled to receive you would need to provide your 21/22 tax year income details for the team to review. Once this has been reviewed the team will be in contact with the student to confirm the funding they are eligible to receive. Thanks, Karen

Reply 2

Hsh68

OP

2

Hi Karen
Thanks for your reply. We have both submitted the figures from the tax return but the rental profits are before mortgages are paid as this is no longer a deductible cost. Tax relief is offered instead. Therefore this figure is far from the actual income we receive.

Original post by Hsh68

Hi Karen
Thanks for your reply. We have both submitted the figures from the tax return but the rental profits are before mortgages are paid as this is no longer a deductible cost. Tax relief is offered instead. Therefore this figure is far from the actual income we receive.

Hi there,

Although we don't take this into account we can look at any potential drops in income.

Do you expect your income to drop by more than 15% in the 23/24 tax year?

Thanks, Graeme

Reply 4

Hsh68

OP

2

Yes. Our income will be well below 15% in fact it will be closer to a 50% drop and by taking the pre mortgage figure our income will appear 50% higher than it actually is.

(edited 1 year ago)

Original post by Hsh68

Yes. Our income will be well below 15% in fact it will be closer to a 50% drop and by taking the pre mortgage figure our income will appear 50% higher than it actually is.

Thanks, in this case you can complete the Current Year Income (CYI) form and this will allow us to use your 23/24 estimates instead. You can both complete the form digitally and then upload it on your accounts.

The form will be available in the next week or so can you can find it here: https://www.gov.uk/student-finance-forms/y/studying-full-time-in-england-and-qualify-for-support-with-tuition-fees-and-living-costs/send-parent-or-partner-s-income-detail-for-example-pff2-or-cyi/2023-to-2024

Once the tax year ends next April we'll contact you again to ask for proof of your actual income.

Thanks, Graeme

Reply 6

Hsh68

OP

2

Thanks you for your replies, however it is not clear on the forms if on the rental income question we provide the income pre or post mortgage payments. On our tax return it will be pre mortgage but will be given tax relief on this figure. If we put the pre mortgage payment figure on the SF form our income will appear to be around 50% higher than it actually is.

Original post by Hsh68

Thanks you for your replies, however it is not clear on the forms if on the rental income question we provide the income pre or post mortgage payments. On our tax return it will be pre mortgage but will be given tax relief on this figure. If we put the pre mortgage payment figure on the SF form our income will appear to be around 50% higher than it actually is.

Hi there, If the overall income is not showing as not lower than the 15% we would not be able to assess the application based on the lower amount. Thanks, Angela

Reply 8

Hsh68

OP

2

Original post by Angela SFE

Hi there, If the overall income is not showing as not lower than the 15% we would not be able to assess the application based on the lower amount. Thanks, Angela

Hi
Even without taking off the mortgage payments our income this year will be well below 15% of previous years and so we will definitely need to fill in the request form to consider this year’s income, but using this figure our income appear 50% greater than it really is.

Original post by Hsh68

Hi
Even without taking off the mortgage payments our income this year will be well below 15% of previous years and so we will definitely need to fill in the request form to consider this year’s income, but using this figure our income appear 50% greater than it really is.

Hi there,
Once the form is available you can submit the figures for the team to review. The team will then review the income details provided for 21/22 and will compare these to the estimated figures for 23/24 tax year. If there has been a 15% or more drop in income the team will reassess the students application and will send them an updated Notification of Entitlement Letter confirming the funding they are entitled to receive.
Thanks, Karen

Reply 10

Hsh68

OP

2

Hi Karen,
Please don’t think I’m being rude but no one is actually answering the question that I’m asking which is …
Do I give the figure before or after paying the mortgages on the rental properties we own?

Original post by Hsh68

Hi Karen,
Please don’t think I’m being rude but no one is actually answering the question that I’m asking which is …
Do I give the figure before or after paying the mortgages on the rental properties we own?

The figures we require is the gross income. This means this is prior to any deductions or outgoings. Thanks, Karen

Rental income and student finance

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