Current Year Income assessment
Has your income dropped?
When a student is applying for student finance, we’ll ask their parents or partner for their household income so we can work out how much student finance they can get. If the current household income has dropped by 15% or more since the tax year details we’ve asked for in the student finance application, the student’s parents or partner can ask us to use an estimate of their income for this year. This is called a Current Year Income (CYI) assessment. This could increase the amount of student finance the student can get.
Check if you’re eligible, how to apply and the actions you need to take throughout the year.
This guide is for sponsors. This includes parents, step-parents and partners of students. There’s separate information if you’re a student.
1 Check if you’re eligible
You’re eligible for a CYI assessment if your current income is lower than the income details we’ve asked for by 15% or more.
The student needs to have applied for student finance that’s based on your household income, and you need to have already provided your income details for the prior tax year.
After your child or partner has applied for student finance, you can request a Current Year Income assessment. We’ll send the student a new entitlement letter if we’ve changed their student finance following your CYI request. If your request hasn’t been approved, we’ll contact you to tell you why.
The closing date for a CYI assessment will be before the last day of the academic year.
3 Keep your income estimates up to date
You must let us know if your income estimates change throughout the year. For example if you’ve:
- worked overtime or extra hours
- changed jobs
- had any pay rises, bonuses or redundancy pay
! If you don’t keep your income estimates up to date, or underestimate your household income, the student could be overpaid. If this happens, we’ll reduce their future student finance payments or ask them to repay the extra finance they received. We may ask them to repay the extra finance before they leave university or college and before their income is over the repayment threshold.
4 Confirm your income at the end of your tax year
After the tax year finishes, we’ll ask you to let us know what your actual income was and send us evidence of this. We’ll usually ask you for this at the end of April. Find out what you need to do and what evidence to send us.
? Find out what you need to do if you haven’t filed your tax return when we ask for evidence, for example, if you’re self-employed.
! If you don’t do this, we’ll reassess the student’s funding. This means we’ll reduce their future student finance payments and ask them to repay the extra finance they received. We may ask them to repay the extra finance before they leave university or college and before their income is over the repayment threshold.
5 What happens next
Once you’ve let us know your actual income at the end of the year, we’ll reassess how much finance the student is entitled to. Then we can check if the amount we gave them based on your estimate was correct.Find out what happens if your estimated income was higher or lower than your actual income. Find out what you need to do if the student is returning to study again next year.