Student finance

xxtinaxxtinaxx

hello, I’m hoping somebody can help me.
ive applied to do a degree starting in September and just been advised by the council that the maintenance loan I will receive will be classed as income and therefore cause my housing benefit award to be reduced.
how can they class a loan as income when I will have to pay it all back?
as a single mother of three I can’t afford to lose the help towards my rent.
especially when they say even if I didn’t apply for the maintenance loan they would take it into account as I qualify to claim it!!
so, basically I have to claim the loan (and pay it back) and also have to use said loan to cover my rent etc so in effect all the bills I pay while studying, I will be paying twice?!?
has anyone had a similar experience?

poppy12345

Unfortunately this is correct. Do you claim any other means tested benefits like income support/ JSA or ESA? If you do then you will need to report the changes to DWP.
Although a student loan has to be repaid back, this only applies if you earn over a certain amount and if you have paid it back fully in 30 years then it’s written off. 

[Deleted User]

Aren’t the loans and grants that you get when studying for a degree meant to be used for everyday expense and living anyway? 

Is that why they take it into account?

xxtinaxxtinaxx

I was under the impression the loans were to make up for what your not earning while your studying.
I am also self employed so the hours I am attending uni/studying will cut into the hours I should be working.
I agree the funds should be used for everyday expenses but how can I be expected to pay my rent etc from it and then pay it back aswell?
surely I am then paying double for all costs I use it for during my period of study?

Rubyroobs

Student loan is to cover living expenses whilst you study, so benefits will be reduced. No doubt your earnings potential will increase by having a degree, although not guaranteed of course. As pp has said you don't start paying anything back from student loans until you earn something like 23.5 k.

huckster

Have you contacted any organisations that help single parents access any additional support ?  Might be worth checking locally, as there can be local schemes/grants that are not well advertised. 

Alice_Holt

Rubyroobs said:

..... you don't start paying anything back from student loans until you earn something like 23.5 k.

      It's currently £27.3k (for courses starting after 2012). 

     OP - this shouldn't have come as a surprise as it's well documented that maintenance loans are treated as income for certain benefits. 
    

Caz3121

https://www.turn2us.org.uk/Benefit-guides/Student-Support/How-does-student-support-affect-benefits
worth a read...some elements may be ignored for benefit purposes

Lanzarote1938

xxtinaxxtinaxx said:

I was under the impression the loans were to make up for what your not earning while your studying.
I am also self employed so the hours I am attending uni/studying will cut into the hours I should be working.
I agree the funds should be used for everyday expenses but how can I be expected to pay my rent etc from it and then pay it back aswell?
surely I am then paying double for all costs I use it for during my period of study?

We all have to pay living costs including rent. you will not be paying it twice as you will simply be borrowing the money to pay it then hopefully paying what you borrow back when your career is established. Do you pay any rent now?

calcotti

xxtinaxxtinaxx said:

I was under the impression the loans were to make up for what your not earning while your studying.

Which is also what benefits are for which is why the loans are taken into account when calculating benefits.

andrewmp

I agree that it is unfair that it is classed as income when you owe it back

Did you know you can get extra money for parent's living allowance.  That might help your situation a bit.  I think they also disregard some of your student loan income.