Mature Student, Maintenance Loan & Housing Benefit

emfmummy2009

Hi,
I'm hoping someone can help me with a query that I have regarding a student maintenance loan and housing benefit. I have been informed by the university centre that I've applied to, that I need to inform housing benefit/ local council once I start my course in September 2015 that I'm in receipt of a student maintenance loan. Apparently student grants aren't considered in the calculation of a housing benefit claim, yet the maintenance loan is? This makes no sense to me as it's a loan? It's something I have to pay back? I'm just wondering if anyone has been in this position and wanted to make sure the information I've been given is correct. I'm a mature student, who works part-time going on to study interior design with one child, who has to claim housing benefit to top up my wages for rent. Surely, if this is correct, that the loan is taken into consideration then my best option is to opt out of taking the loan as housing benefit is not something I have to pay back but something I'm entitled to? Any help would be appreciated. I'm just trying to weigh up my options etc. Thanks in advance.

agrinnall

Other people will know much more than me, but it seems reasonable that student loan should be counted as although you have to pay it back that only happens after you finish studying and once you start to earn over the threshold amount, but you are getting the benefit of it now. If it works out better not to have the loan and retain HB then that may well be the sensible decision.

emfmummy2009

It just didn't make any sense to me as I could go and take out a commercial loan and that not be classed as income, yet I take out a student loan and that is classed as income!

agrinnall

emfmummy2009 wrote: »

It just didn't make any sense to me as I could go and take out a commercial loan and that not be classed as income, yet I take out a student loan and that is classed as income!

Yes, but you'd be repaying the commercial loan straight away. Student loan is an entirely different thing, and if you look at the repayments as a tax on going to university rather than paying back a loan (which is how Martin Lewis has said he'd prefer it to be considered) then it's easier to see the student loan as income.

However, nobody is forcing you to take a student loan, so if you don't want it, don't have it. For most people it would be a good thing to have but in your specific circumstances that may not be the case.

emfmummy2009

I've found out that it's not the case of deciding whether to take the loan or not as whether you do or don't the loan is classed as income anyway so the best option is to take it if you need it. Thanks for your help.