How does a part-time maintenance loan affect ESA?

bumble101

Hi, I started an OU course last year classed at 50% of full time study- I'm on IR ESA and Pip.
My understanding is that part-time maintenance loans have only been introduced from the year 2018-19 and if you started your course before then you can't take one out even if you would like to. If you are starting your course in 2018 I think you have to take it out if you are studying with a disability- I'm sure I've read that on the disability rights page but it's probably worth ringing them for more info.
Best wishes with your course. I've found the Open Uni to be an excellent organisation and very supportive of students with disabilities. Of course it's very hard work at times but it is also very interesting and fulfilling.

Gypsywoman

You 'have' to take a loan? A sum of money that will be your debt and which will need to be paid back once you are earning a certain amount. Even If you do not want a loan you 'have' to take one or your money from DWP, will be deducted in any case?

Is there some real benefit in taking one of these loans, apart from the deductions for books and travel? Which could be done if on PIP for mobility, and by using second-hand books or information from off the Internet. if the loan is not taken.

To have a debt you do not want that I assume is added to next year, seems so very wrong.

I may have got it muddled and I really hope I have. There are still loan sharks in most communities and loans are available to most people and so those on means-tested benefits have the right to a loan but most obviously choose not to take a loan and that does not effect their benefits. That is the part I do not understand.

If anyone can put me straight, please do. For the thought that those who are trying to get a higher education and more opportunities of work, disabled or not, are being pushed into debt with no choice, for they will penalised if they do not. is terrible.

I wish those who are studying or ready to study all the very best. It is years since I was at uni but I did it P/T with no loans and no penalties for doing it that way.

Ezorqs

Yes, you have to take it and the full amount you are entitled to. Student Loans are treated differently to all other loans and may not have to paid back in full. Student Loans are generally wiped after 30 years and most people end up paying less than the full amount back, this is why MSE appears to endorse them. They do not count to your credit record and even if you do start work you have to be earning over £16,000 a year minimum to start repaying. Many repayments for someone on £20,000 equate to about £50 a month.

Maintenance loans are there specifically to enable you to live, they are not just for books and travel.

Normal loans are treated differently and you don't have to take those. I also don't think that you would have to declare them to the benefit centre either but keep records just in case including what it was for. Most decision makers to my knowledge will disregard them unless you still have that money after a year.

You will be no worse off taking a student loan, you will just not be any better off.

Penguin90

Ezorqs wrote: »

You will be no worse off taking a student loan, you will just not be any better off.

The bit in bold is what matters. In effect I'm giving up money I don't need to pay back (ESA) for money I do (student loan) - beginning to think this was the intention behind rolling out part-time loans all along, reduce the amount of benefits the govt has to pay out.

Ezorqs

That's correct yes.

However you do not necessarily need to pay off that maintenance loan. As I alluded to, this debt is wiped after a certain period and most never actually repay in full. This is assuming that you start work that pays £16,000+ per year, which is when payments would commence.

The intention behind student loans and not just part time loans, was that some money would be clawed back making it in the end cheaper for the government. Previously it was footing the entire bill. MSE explains this much better.

Penguin90

Alice_Holt wrote: »

Talk to these people if the OU can't offer guidance:
https://www.disabilityrightsuk.org/how-we-can-help/helplines/disabled-students-helpline

The phone number on the website does not work.