Student Loan and Housing Benefits.

altin_2

Hi.
I have a real shock today when have a talk with Housing Benefit Officer about how my housing benefit is calculated(full time student).
To my shock they take into consideration the MAX LOAN AVAILABLE REGARDLESS if you take it or not.:eek::eek:
So even I haven't taken any of my £7510 yearly max loan available, they are still calculating it as I have taken it. I mean this is a loan: I have to pay it back, how this can be an income?????

I'm paying more than £3100 a year on university fees..... but this is.....I don't know.

altin_2

This sound to me like telling people on benefits to go and take a loan at the bank....so the council don't pay any.

I'm totally gobsmack.

dmg24

The difference between a commercial loan and a student loan is the rather large interest rate that the bank will apply!

You should be grateful that you are eligible for help with housing costs whilst being a student (few people are) and that you are eligible for an interest free loan. The alternative would be to get a job - is this an option that is open to you?

altin_2

The alternative will be to get a loan from the bank and pay £3100 a year university fees and claim benefits.
So you will only have to pay some £9000(3 years at Uni) + bank rates + HB() instead of £30000 "interest free" loan from Student Finance - no HB

Oldernotwiser

HB is based on what money is available to you, whether you choose to take it or not. Student Loans are nothing like bank loans; many people never pay them back and nobody pays anything until earning a reasonable wage.

The system is the same for everyone and seems perfectly fair to me.

karenx

Student loans are not only to help pay your fee's but also for housing and day to day living. So if you didnt take the loan what would you use for day to day living and bills etc?

dmg24

altin wrote: »

The alternative will be to get a loan from the bank and pay £3100 a year university fees and claim benefits.
So you will only have to pay some £9000(3 years at Uni) + bank rates + HB() instead of £30000 "interest free" loan from Student Finance - no HB

Is there a reason why you/ your partner cannot work?

custardy

i still think the whole scenario of the loans and how they are treated is strange
they are treated as income with regard to benefits/support but at the end of the day you need to repay that 'income'

AnxiousMum

Personally I think if you are choosing to be a full time student and not work part time to help maintain your living costs though - why should you be eligible to receive benefits in order to meet your costs. You have money made available to you - but rather than take that money and pay it back, you want the rest of the country to pay for your choice?

If being a full time student isn't working financially for you that you need benefits as well, have you thought about doing it the way many do, and working full time and doing your course part time? It takes a little longer for sure, but at least the only person paying for your choices is you. I remember my parents both doing their degrees part time while working, and my sister has just completed hers part time while working full time as well.

altin_2

Is there a reason why you/ your partner cannot work?

I'm working part time, and my wife looks after our 3 years little boy.

fluffymovie

Student loans and their calculation are an area that causes a lot of headaches for HB assessors but the regulations do state that we have to use the maximum loan available to you whether you choose to take this or not.

However, if you are a student with children, there may be grants available to you which we don't take into account. I don't have my notes with me at home but from memory this would be the adult learning grant, dependents grant etc. These are disregarded in full.

From the student loan, we also deduct an amount for books and travel and then divide over 42.43 weeks in the year. We then take off a further £10 so if you chose to take the income in full, we wouldn't use all of it. The disgreards amount to just under £700 per year from memory and then we would disregard a further £430 - so over £1000 we wouldn't use.