As the end of the year is approaching it is time for the little birdies to leave the nest and head off to university. It’s hard to know as a parent what the latest information about student loans and allowances is, so hopefully, this article can help. 

Student allowance 

This is an allowance that is deposited into the student's bank account weekly. The maximum amount for a single, under 24-year-old with no children is $268.88 each week but depending on a range of factors the amount can be less.

The amount a student can receive is determined by the students' parents income, their living situation and their age. When the parent's income is over $57,545 their allowance will be less. Income for these purposes can include trust and company income.

Students under the age of 24 are not eligible for a student allowance.

1. If the student lives with their parents and the parent's combined income is over $99,793.
2. If the student does not live with their parents and their combined income is over $107,600. 

This income is classed from all sources and is based on the parent's tax return for that relevant tax year. 

Student loan- living costs 

If the student is not eligible for the student allowance, they can apply for living costs. This is an amount deposited into the student's bank account but has one major difference from the student allowance, the amount is required to be paid back.

This amount can range up to $242.53 a week and is added to the student's student loan. Once the student begins earning salary and wages there may be a requirement to have repayments deducted from their wages.

We hope this information has helped you and your wee bird leave the nest! 

If you have any questions, please call us and we are happy to assist.