Quitting uni - do I need to pay back my maintenance loan?
Hey, Im looking to drop out since ive come to terms that my course just isnt what I want to do in life and I feel like im not even learning anything here. Anyway that aside, If I leave once the term ends I shouldnt have any maintenance loans to pay back right? Im in 2nd year btw
Original post by Anonymous #1
Hey, Im looking to drop out since ive come to terms that my course just isnt what I want to do in life and I feel like im not even learning anything here. Anyway that aside, If I leave once the term ends I shouldnt have any maintenance loans to pay back right? Im in 2nd year btw
I can't answer the question re your maintenance loan.
As you've presumably successfully completed year 1 of your course, you should check to see if that makes you eligible to receive an "exit award" when you withdraw, and (if so) whether you will get that automatically, or whether you will need to apply.
Depending on your university's regulations, you might be able to be given an award (typically a Certificate of Higher Education (CertHE)) for having completed 120 credits at level 4.
Original post by Anonymous
Hey, Im looking to drop out since ive come to terms that my course just isnt what I want to do in life and I feel like im not even learning anything here. Anyway that aside, If I leave once the term ends I shouldnt have any maintenance loans to pay back right? Im in 2nd year btw
You owe all the money that student finance has given you.
That doesn't mean you necessarily need to start paying it back right way - you'll pay them back as essentially a tax on your earnings, whenever it may be that your start earning, above a certain threshold.
If you complete the year and then notify your university that you don’t intend to re-enroll onto third year in August then none of your maintenance will be classed as overpaid and you will only repay it on the standard repayment terms.
If you complete and pass year 2 then you will normally be eligible for a Diploma of Higher Education (DipHE) early exit award.
If there’s any doubt at all then I would strongly recommend that you ask your university to suspend your studies for a year in August instead of withdrawing. That then leaves open the possibility to resume your studies if you change your mind after leaving.
If you complete and pass year 2 then you will normally be eligible for a Diploma of Higher Education (DipHE) early exit award.
If there’s any doubt at all then I would strongly recommend that you ask your university to suspend your studies for a year in August instead of withdrawing. That then leaves open the possibility to resume your studies if you change your mind after leaving.
Original post by Anonymous
Hey, Im looking to drop out since ive come to terms that my course just isnt what I want to do in life and I feel like im not even learning anything here. Anyway that aside, If I leave once the term ends I shouldnt have any maintenance loans to pay back right? Im in 2nd year btw
Bit of a vague question and I think there's a few factors going on which might get confusing:
a) No matter what, all the loans you have accrued so far will remain in your name and you will need to make repayments on them when earning over the threshold as normal. This is no different to if you completed the degree, you just will have slightly fewer.
b) In terms of this year's maintenance loan disbursements, it depends at what point in the year you leave. Generally SFE loans are disbursed in three chunks, one at the start of the academic year, one after the winter break, and one after the spring holiday. You will need to pay back any amount of maintenance loan you would not have "earned" pro-rata up to this point in the year.
For example, if you left one day before the second loan disbursement came through - you would not need to pay back any of the first disbursement, and you would simply not receive the second disbursement.
If you left half way through the second term, exactly halfway between the second loan disbursement coming through and your third one due to be paid, you would have to repay half of your second loan disbursement.
So yes, you may need to pay back directly some proportion of your most recent loan disbursement - at this point your first loan disbursement this year won't need to be paid back, but some (most of at this time, less as time goes on) of your second disbursement would need to be paid back).
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Therefore it may be more convenient to time your withdrawal at the end of the academic year or just before the next loan disbursement. Bear in mind any other financial obligations you have, for example rental contracts you may be locked into too!
As above it's probably easiest to aim to withdraw at the end of the academic year at this point, and you may want to look at suspending your studies instead to have a year out. Note the loan repayments process outlined above (both categories) also applies to if you interrupt/suspend your studies.
(edited 3 months ago)
Original post by Anonymous #1
Hey, Im looking to drop out since ive come to terms that my course just isnt what I want to do in life and I feel like im not even learning anything here. Anyway that aside, If I leave once the term ends I shouldnt have any maintenance loans to pay back right? Im in 2nd year btw
Hey there!
You have to pay back any student finance you've borrowed, even if you don't complete the year because at the end of the day it is a loan. You don't have to pay it all back straight away, you'll just pay it back in line with the current threshold for paying back the loan which will be based on your income. You're best off checking with student finance themselves about whether you still have to pay back the instalments that are queued to come in for the rest of the year but you will have to pay back any money you've borrowed thus far.
Hope this helped!
Lucy - Digital Student Ambassador SHU
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