Change in Household Income

This section explains how a change in household income can result in an overpayment of loan or grant (or both).

This only applies if your application for student finance is based on your household income.

How has this happened

When you apply for student finance a proportion of your Maintenance Loan and any grants (excluding Disabled Students’ Allowances) may be based on your household income. The assessment is based on your household income for a specific tax year. For example, if you’ve applied for student finance in academic year 2017/18, then we need household income information for tax year 2015-2016.

However, as your household income provided to support your application may have changed, a provisional assessment may be been carried out based on the estimated income for the current financial year. This is called a Current Year Income assessment.

Payment of the income assessed part of your loan(s) and grant(s) will be based on this Current Year Income assessment.

A few months after the end of the tax year, we will contact your parent(s) or partner and ask them to complete a Financial Information Confirmation (PR2) form to confirm the actual household income. You’ll already have been paid based on the Current Year Income assessment, however we’ll reassess this and adjust your entitlement based on the actual household income.

Any amount of loan or grant paid to you in excess of this will be classed as an overpayment and will need to be repaid.

What happens next?

If you have a grant or loan overpayment as a result of a reassessment, we’ll write to you. This will confirm the overpayment amount and the intention to recover this from any remaining payments you’re due to receive within that and any subsequent academic years.

Alternatively, you can contact us on the number provided in the letter to make arrangements to repay this directly.

Overpayments which are not recovered while you’re studying will remain overdue. You’ll be required to repay any outstanding amount when you finish your course. We understand you may not be able to repay in a lump sum, so we’ll consider reasonable repayment proposals.

You will also be sent a new Notification of Entitlement letter. This will show your reduced entitlement.

Need more information?

If you have a query about your reassessment and why your entitlement has been reduced, contact us.