Student loan and benefits.

pmf63

Hi all

Just wondering if anyone can shed light on why the government thinks that it is OK to recover a student loan twice and claim that they are not?

My wife is a student and we receive child tax credits and housing/council tax benefits. Last Sept when she started Uni we had our benefits ammended, that's OK, but we had the equivalent to her student loan classed as income and therefore taken off of the benefit. So we have paid the student loan back at source but when she qualifies she will need to pay it back again, with interest.

I told them that it was a loan and they said that it didnt matter. I asked if we took out a bank loan for the same amount would they consider that as income to which they accused me of being padantic.

Can someone please explain to me why student loans and other loans are treated differently. Bearing in mind that we had the SL taken into account regardless of whether we applied for it or not.

hippygran

I know - its wrong.

They did that to me several years ago now.

I had to use my student loan to pay rent and council tax, because my husband was temporarily out of work at the time.

If I hadn't been a student, we would have qualified for HB and CTB, but whether I took the loan or not, it was regarded as 'income', and so voided any claim!

Still paying back the last bit of it now (with interest), and would have preferred not to take the darn thing in the first place, but was given no choice in the matter (except getting thrown on the streets due to rent arrears!).

They couldn't explain it to me then, and I doubt you will get an explanation now!!

By the way, it is generally only 'mature' students affected by this, as younger students are not generally in their own housing! I worked part-time all the way through my course, but my earnings weren't sufficient to pay feed, clothe, and house two people! (Even during holidays - when I took several jobs to make up more than full time hours!)

Stinks a bit, doesn't it?

seven-day-weekend

I think because the student loan is supposed to be live on, it is classed as income.

Every student would have to live on it, and then pay it back. Your wife is not being treated any diferently to any other student.

pmf63

seven-day-weekend wrote: »

Your wife is not being treated any diferently to any other student.

I would dissagree ... all mature students get it deducted from their benefits, benefits that other students don't have, because it is classed as income. It is a repayable LOAN, that is paid back twice. It effects everyone on benefits so not every student.

dmg24

It counts because it is not a commercial loan. Surely you do not expect to receive a virtually interest free loan plus benefits?

seven-day-weekend

pmf63 wrote: »

I would dissagree ... all mature students get it deducted from their benefits, benefits that other students don't have, because it is classed as income. It is a repayable LOAN, that is paid back twice. It effects everyone on benefits so not every student.

So every student has a repayable student loan. Most students don't have other Benefits. You are saying your wife should have a repayable student loan AND Benefits!

MrsManda

pmf63 wrote: »

I would dissagree ... all mature students get it deducted from their benefits, benefits that other students don't have, because it is classed as income. It is a repayable LOAN, that is paid back twice. It effects everyone on benefits so not every student.

People get a certain package of funding when they become students. Their age is immaterial. I don't see how anyone can expect to be allowed to have the student finance package and be able to claim all the benefits they would be entitled to if they weren't a student. Surely this would mean that mature students are getting preferential treatment over younger students?
As for having the choice of continuing to claim benefits rather than take student finance, how is that possibly fair?

You make a conscious decision to become a full-time student rather than looking for a job/working. You take into consideration finances and weigh it against what the experience/knowledge of having a degree may be worth to you. No one forces you to become a student.

pmf63

MrsManda wrote: »

You make a conscious decision to become a full-time student rather than looking for a job/working. .

How dare you suggest that my wife is doing this to avoid working!

My wife made a concious decision to become a full time student to put something on the dinner table instead of claiming benefits.

As a mature student she gets nothing more than any other student ... I claim the benefits, housing benefit and council tax and I am looking after the family and three children on HER grant. Apparantly she gets too much for me to claim IS!! So, she is having to support us as well.

You tell me it's fair to have to support a family on the SAME student grants that a single young 18 year old gets!

I thought this was a friendly advice forum? I have got nothing but critisism for wanting to get off benefits and support ourselves.

Jowo_2

pmf63 wrote: »

..
Can someone please explain to me why student loans and other loans are treated differently. Bearing in mind that we had the SL taken into account regardless of whether we applied for it or not.

It is income. It isn't income that comes from renumerative work but student loans offers a way for the student to pay their ordinary living expenses instead of the state purse. The student is investing in their career.

Jowo_2

pmf63 wrote: »

I would dissagree ... all mature students get it deducted from their benefits, benefits that other students don't have, because it is classed as income. It is a repayable LOAN, that is paid back twice. It effects everyone on benefits so not every student.

Many full time students do not qualify for benefits. Benefits tend to be paid to those with children and disabilities.

I'm not sure why you regard this low interest loan as being paid back twice? Please clarify.

A student is investing in their career and will be the main beneficiary in any improvement in the quality of their life and higher income.

dmg24

pmf63 wrote: »

How dare you suggest that my wife is doing this to avoid working!

My wife made a concious decision to become a full time student to put something on the dinner table instead of claiming benefits.

As a mature student she gets nothing more than any other student ... I claim the benefits, housing benefit and council tax and I am looking after the family and three children on HER grant. Apparantly she gets too much for me to claim IS!! So, she is having to support us as well.

You tell me it's fair to have to support a family on the SAME student grants that a single young 18 year old gets!

I thought this was a friendly advice forum? I have got nothing but critisism for wanting to get off benefits and support ourselves.

You are a family, it is not her grant and IS would not be for you, they are for the family unit. You have also missed the fact that you will be receiving far more finance than a single student.