We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

LHA and student loans?

I have been unemployed for nearly 2 months now, and live with my partner who is a full time student. I still haven't received any housing benefit, I keep getting fobbed off with "We need all the student loans figures" which i have given them. Surely a student loan cant be classed as an income as it needs to be paid back! I'm starting to get a bit worried now as my rent is due on friday and i am skint! So far we have sold every non essential item, used up our savings, baby savings and borrowed a lot our rent is more than my jobseekers benefit! Anyone else been in a similar situation? Do they backdate payments?

Comments

  • Jowo_2
    Jowo_2 Posts: 8,308 Forumite
    On this particular local government site, they insist that student loans are treated as income. Your partner's college/uni may have info on their website or an advisor who can clarify this.

    "Student grants and loans are taken into account as income. Grant income means any kind of educational award or grant, from whatever source, including a scholarship, studentship, exhibition, allowance, bursary, awards/grants from public funds and any assessed parental or spouse’s contribution whether or not it is actually paid. Student loans are taken fully into account as income for any student who is eligible to receive one, whether they choose to borrow a lesser amount than is available or indeed, whether they choose not to take out a loan at all. A weekly income disregard of £10.00 applies to loan income."

    http://www.ryedale.gov.uk/advice_and_benefits/benefits/housing_benefit_-_new_claim.aspx#Studentswhoareeligible

    If you have provided sufficient information to process the LHA claim but after two weeks the local council haven't yet done so, apply for an interim housing benefit payment.
  • karenx
    karenx Posts: 4,988 Forumite
    It can be used as income as a student loan is there to buy things for uni and also for living on. So its only right its taken as income for benefit purposes
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    Student finance, both loans and grants, is counted as income for assessing means tested benefits. All students have to pay their rent out of their finance.
  • BERFFRO
    BERFFRO Posts: 253 Forumite
    It all makes a bit more sense now, I understand how you have to use the student loans to live on and pay rent etc. It was just the way the woman was telling me on the phone that we would not be entitled to anything much!

    The whole system just annoys me so much, this is he first time i have ever been unemployed, having worked full time for the past 11 years, And now seeing people of the same age who have never worked, who have nice house all paid for by council, double glazing, central heating! My flat has none of these. It's winding me up just writing about it!
  • fluffymovie
    fluffymovie Posts: 1,417 Forumite
    Part of the Furniture Combo Breaker
    Hi there

    Student finance is complex for Hb and CTB and so you will find that in some authorities, only a few people will have the level of knowledge to do them. Sometimes this does mean that they take longer to assess as well.

    Basically, loans and grants are taken into account as income for the period of study.

    For example, a student loan of say £4500.

    From this, a disregard is made for books and travel. Don't have my figures to hand but this is just over £600 I think!

    The loan is averaged over the period of study which is normally 42/43 weeks and we then deduct £10 per week from this.

    That weekly amount is then used as income as would your Child Tax Credit and any other income you have such as part time earnings etc.

    I am a bit confused as you have mentioned JSA but if he is a student, do the DWP know about that as I think his income would have an effect on your entitlement but not sure of that as only work in HB!

    As your partner is a full time student, you should make sure the Ctax department know this as you will be entitled to a Single Person Discount of 25%.

    Also, as you are struggling, has he approached his educational establishment as they may have access funds to help students in crisis? I know I applied for assistance when i was an Uni many years ago!
    I currently manage a Housing Benefit service and have been working in Housing / council tax benefit (as was) since 2001.

    All views expressed in my posts are my own opinions and do not necessarily reflect those of my employer.
  • MissMoneypenny
    MissMoneypenny Posts: 5,324 Forumite
    BERFFRO wrote: »
    The whole system just annoys me so much, this is he first time i have ever been unemployed, having worked full time for the past 11 years, And now seeing people of the same age who have never worked, who have nice house all paid for by council, double glazing, central heating! My flat has none of these. It's winding me up just writing about it!

    Use your vote on 6 May.
    RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
    Read the sticky on the House Buying, Renting & Selling board.


  • BERFFRO
    BERFFRO Posts: 253 Forumite
    Use your vote on 6 May.

    I'm intending too!
  • KimYeovil
    KimYeovil Posts: 6,156 Forumite
    1,000 Posts Combo Breaker
    Use your vote on 6 May.

    How will that help? Who could you vote for that would alter anything?
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 347.1K Banking & Borrowing
  • 251.6K Reduce Debt & Boost Income
  • 451.7K Spending & Discounts
  • 239.3K Work, Benefits & Business
  • 615.2K Mortgages, Homes & Bills
  • 175K Life & Family
  • 252.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.