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Student Finance

Discussion in 'Retirement' started by ggu1, Jun 2, 2019.

  1. ggu1

    ggu1 New commenter

    Hi. My first post!
    Well I've finally decided to stop teaching I'm 55 and still have 2 boys at Uni. I thought that as my income is dropping by 15% I could get them a bigger loan. Turns out student finance( I think) take lump sums from pensions into account as income. I rang student finance and they are a bit unsure themselves in fact rang twice!
    Does anybody have any experience of this? When you apply normally it doesn't ask for lump sums but claiming for reduced income it does? Just want to be honest.
     
    PeterQuint likes this.
  2. catmother

    catmother Star commenter

    You are retiring at 55 and your income is only dropping by 15% from your teaching salary? How is that possible?
     
    Startedin82 and paulstevenjones like this.
  3. ggu1

    ggu1 New commenter

    Ahh Sorry. Dropping by loads - more like 50% I can apply if it drops by 15 or more percent
     
    Startedin82 and catmother like this.
  4. paulstevenjones

    paulstevenjones New commenter

    I’m not sure there’s any way out unless you defer your retirement until they finish. What about the fact it’s tax free? Perhaps ask HMRC.
     
    Startedin82 likes this.
  5. ggu1

    ggu1 New commenter

     
  6. ggu1

    ggu1 New commenter

    Well the link from student finance about income is to HMRC which doesn't include lump sums as tax free!
     
    Startedin82 likes this.
  7. diddydave

    diddydave Established commenter

    If they do take the lump sum into consideration then you are likely to look extremely wealthy for that year! (and probably get less assistance)...have you considered what paulstevenjones suggested and simply become unemployed for a couple of years - delaying taking the pension?
     
    Startedin82 likes this.
  8. stopwatch

    stopwatch Established commenter

    Not entirely connected, but there was a debate on LBC the other day looking at University fees etc in the light of recent news. One caller described how, partway through his University course, both of his parents were made redundant/became unemployed.
    Whereas the expectation was that this would make his situation better (parents with no 'income') in fact it made it worse as their redundancy payments were taken into account and were in fact considered as 'income' for that year (and beyond).
     
    Startedin82 likes this.
  9. stopwatch

    stopwatch Established commenter

    They may still consider the pension lump sum as 'income' for that year and beyond, until it has gone.
     
    Startedin82 likes this.
  10. pennyh.

    pennyh. Occasional commenter

    Go to the Finance/Bursar in the Uni - they will have met most situations and also are ware of their own grants to help.
     
    Startedin82 likes this.

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