Glossary · UK
What is Maintenance Loan Means Test?
The household income assessment used to determine how much maintenance loan a student receives towards living costs, with the loan tapering down as parental (or partner's) income rises.
Full Definition
The maintenance loan means test is the household income assessment Student Finance England (and the equivalent bodies in Scotland, Wales, and Northern Ireland) applies to work out how much maintenance loan a student is entitled to for living costs while at university, as distinct from the non-means-tested tuition fee loan that covers course fees. For most "dependent" students (those under 25 without their own dependants, not estranged from their parents, and not otherwise classed as independent), the assessment is based on the residual household income of the student's parents (or a parent and step-parent/partner if remarried or cohabiting), using income from the second tax year before the academic year of study begins. Students from the lowest-income households qualify for the maximum maintenance loan, currently up to a few thousand pounds higher for those studying away from home in London than elsewhere, while the loan tapers down on a sliding scale as household income rises, reaching a lower minimum loan amount (still available to all eligible students regardless of how high household income is) once income exceeds the upper threshold. Because the taper is based on gross household income rather than a fixed cliff-edge, a family with income just above a threshold does not lose access to the loan entirely, but does receive materially less support than a family just below it, and many families are surprised at how quickly the maximum loan reduces as income rises through the middle of the income scale. Students assessed as "independent" -- because they are 25 or over, have supported themselves for a set period, are estranged from their parents, are a care leaver, or have dependants of their own -- are assessed on their own (and any partner's) income instead of their parents', which can significantly increase the loan available to mature or estranged students who would otherwise be assessed against parents they have no financial relationship with. Parents are not legally obliged to make up any shortfall between the assessed contribution implied by the means test and what the maintenance loan actually provides, which is a common source of financial strain for students whose parents are assessed as able to contribute but choose not to.