Does inheritance affect my student loan?

Im a 2nd year Uni student in the UK and I’m looking at housing for 3rd year. Typically, my household income is below the £10,000 a year so my maintenance loan is quite high in order to support me. However, my gran recently passed away so my mum is going to receive inheritance and a sharing of the money from possessions & from selling my grans house.

Will this inheritance that my mum gets mean that my student loan for next year will be lower? Does the inheritance she get class as part of the household income?

I’m just a bit worried that I won’t have enough money to fund a substantial part of my housing for next year as a lot of the flats I’ve looked at are priced my higher than the ones I’ve lived in before.

Reply 1

SFE Jason

Official Rep

Original post by amyb04

Hi Amy,

You would declare this on the 'unearned income' section of your application. Inheritance payments are subject to inheritance tax, not income tax, therefore we will not consider this when calculating your entitlement to support. However, If you pay your inheritance payment into a savings account, the interest payable on the savings account will be considered when calculating your entitlement to support. Thanks, Jason