Is lying to the student loans company fraud?

veryconcernedstudent

Hi.

Basically a friend of mine who graduated this year informed me that her parents have split up and that's the reason she used to get a full grant and maintenance loan.
Her father is absolutely loaded, he runs his own company and owns a very expensive house in Plymouth and one in Spain, has very flash cars, multiple boats etc.
In contrast her mother is more or less broke. Now she had previously lived with her father because she doesn't get along with her mother at all, she hates the woman more or less and apparently both her parents used to live within 15 minutes walk of each other until 3 months ago when her father moved and she lived between the houses but lived with her father most of the time, she had his address on her drivers license etc. However after applying to university she then moved to her mother's house so that she wouldn't have to declare her father's income so she would get the full grant and loan and also the full bursary at de montfort (I think that's about £1000 a year extra).

Is this allowed or does it count as fraud as although she wasn't living with her father per se he provided her with money whenever she needed it (for instance he paid off her entire overdraft when the bank called it in) and she could rely on him for money if needed.

If it was just my friend I wouldn't be concerned but now her twin brothers are about to go to university and about to do the same thing and I would imagine her youngest sister will also do it when she goes to university in two years as well.

In my opinion this is wrong and on par with large scale benefit fraud and something should be done to stop it but I don't know who to contact in regards to the issue.

amiehall

In answer to your title question, yes lying to student loans is fraud. As to the other bit, there's no actual lying been done. If they can honestly say they stay more with their mum then it doesn't matter what financial support is provided by the father. It's not very fair and it's a system that very much disincentivises couples living together or getting married but that's the system.

ollyshaw

Yes, I agree with amiehall. It's the system that is wonkey here.

TBH I think parent's income should have no bearing on things. Students are 18 and they are ultimately responsible for the debts they run up, should their parents income make any difference?

Olly

abby1234519

You posted this on another website and the answer you got was that it may be immoral but it is NOT illegal.

Just give up! Look after your own affairs not other peoples

hbk619

Yeah a mate who's parents split up got the full grant because his mum's income was low even though his dad was giving him hundreds a month. My parents give me nothing and I get the minimum grant. Sucks. The system sucks.

No_Future

The SLC rules are stupid anyway.

Why should the amount of loan you get be based on parental income? Once you're an adult, your parents are not obliged to support you.

Even the maximum amount of student loan isn't enough to live on in most UK cities. It just about covers rent.

Also, you are only classified as a mature student if you are over the age of 24 (or 25?), or if you can prove earnings of at least £7.5k for 3 yrs prior to starting uni. Seems really stupid to me.

In any case, it's a loan and so is repayable. It's hardly on par with benefit fraud and is for a measly amount.

I think you should mind your own business.

marywooyeah

No_Future wrote: »

Also, you are only classified as a mature student if you are over the age of 24 (or 25?), or if you can prove earnings of at least £7.5k for 3 yrs prior to starting uni. Seems really stupid to me.

Its 22 - I'm a mature student and started my degree at 22.

abby nice to see you back!did you go back to uni this year or did you defer? hope you and Josh are well x

Taiko

It's 25, in according with The Education (Student Support) Regulations 2011.

Sarah010

What a lovely friend you are.... I dont see anything illegal going on there.