Help with Student Loan and Rent Scotland

scotsl

Hi everyone I hope someone can shed some light on this and perhaps offer a solution.

I stay in Scotland and after completing a NC at college I have applied and been accepted onto the HNC/D course.

During the NC year, I took everything that was going and that was ok.

Now moving onto HNC I have decided not to apply for student loan as I don’t want saddled with a debt I don’t need.

I have been working 20 hours a week for the last 3 years since my wife gave birth to the twins, and intend on staying on these hours until I have passed college and got a better job.

As I only work 20 hours a week, we are not entitled to WTC but get Child Tax Credits, Child Benefit, rent and council tax and my income is less than £8000 a year but it supports me and my family.

As previously mentioned I decided not to apply for a loan for HNC course as: A- I don’t want the debt and B - I would not see any benefit of the loan as I would then have extra income coming in and as such would have to pay the majority of the income straight to the council for rent and council tax.

I recently had to visit the council as they suspended my benefits due to me finishing college, I mentioned (stupidly) that I would be returning to college in August and how would this affect my benefits. I was asked if I was taking a loan and I replied no, I was then told that as I was denying myself an income they would have to review the benefits I would be entitled to!

I have requested to speak to one of their managers to discuss why I'm being forced into taking a loan to pay rent/c-tax. I already spoke to another manager who said that it's government legislation and basically tough.

So the short story - go to college no loan, struggle as benefits reduced and income the same. Go to college get loan have debt pay council rent/tax or forget trying to better myself and continue getting the benefits.

I have already applied and been accepted to SAAS for tuition fees so need to sort this out A.S.A.P.

Sorry for the long story, probably overly complicated it but hopefully covered it all so someone can assist.

Peanuckle

They are correct, why should you be given housing and council tax benefit when you're entitled to the loan? The system is set up like that in order to prevent people claiming benefits (which don't require repayment) when they can get the student loan (which does require repaying, although most people are unlikely to ever repay it all imho)

scotsl

But why am I being forced into taking a loan that I dont want and as I said will see no benefit of?

Im trying to get an education that will allow me to earn half decent money which in the long term mean I will be paying back any benefits I have received.

Again I dont see how its fair being forced to take a loan that is of no use to me.

The_One_Who

No one forces you to take the loan, but it's of use to you because you'll be able to pay for what you need to, and at a reasonable rate.

scotsl

I'm sorry but getting quite het up re my situation.

Its a HNC course for Computer Technical Support and as such dont as far as I'm aware need to obtain anything for my course.

There is a small fee associated with gaining MS Certificates but other than that nothing that I'm aware of.

I am being forced into taking a loan and getting although minimal a debt that I do not want.

No disrespect meant to anyone but can no one see that if I get a loan it comes off the Government, to be paid to the local council only to be repaid back to the Government once I earn enough!

I would expect to roughly get around £500-£600 a month for the loan of which more than half of it would have to go to the council.

I am not defrauding the system just trying to make it work for me and mine.

I am trying to gain an education to better my family. I am not a dole scrounger living off state handouts.

Dunroamin

Nobody is forcing you to take out a loan.

If you or your wife were earning enough to keep your family without support from public funds then you could do as you like. However, that is not the case (despite the fact that you think that you do so) as you need state help to live so obviously any money available to you is taken into consideration when assessing means tested benefits.

Look on it as being independent, paying your own way and being a good example to your children.

scotsl

I really thought I would have had some help/advice from this forum however proved quite wrong.

Not one person can see that I am being forced to take a loan as without the loan there is no way I can go to college and afford the decrease in benefits that will be my "punishment" for not wanting debt.

I do not think I earn enough to class myself as independent from public support hence why I'm going to college to help me be a little less dependent on the welfare state.

But realistically how much do you need to earn before you are not welfare dependant in some way?

I feel that me looking for advice has turned into berating me.

You don’t know who I am or my broader circumstances other than what I have mentioned here so why give out comments such as "Look on it as being independent, paying your own way and being a good example to your children."

DISAPPOINTED.

tkwad

im sorry you feel noone has been of help to you with your question.
All i can add is the council are more than likely viewing you not taking out a loan available only to students and repayable at very reasonable terms only when earning enough, the council will view this as a form of deprivation of assets similar to if you had redundancy and spent it purely to recieve help with benefits,,,,,its a very hard situation sometimes we find ourselves in...but look to the future when you will be able to better provide for your familt,,,which you are trying to do now.....

will you take the loan or will you not follow the educational route?

scotsl

Well it seems the only option is if I want to improve family life and earn decent money is to be forced to take a debt that is of no benefit to myself.

Have sent SAAS an email asking them how I can update my application to now include getting a loan from them.

suburbanwifey

scotsl wrote: »

Well it seems the only option is if I want to improve family life and earn decent money is to be forced to take a debt that is of no benefit to myself.

Have sent SAAS an email asking them how I can update my application to now include getting a loan from them.

I see where you are coming from and sympathise with you being forced to take out a loan that means you have debt to pay back. Doesn't seem fair to me either. But I won't get involved as all replies indicate that what you are wanting and expecting is unreasonable. I personally though agree with you. How much will the debt be for?

scotsl

As far as I am aware I am looking at around £6000 per term. Of course that is before they take into my income from work.

Lot of debt but if I want a better future seems like no choice but to take it