Student finance

kaMelo

andrewmp said:

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.

How is it unfair?
Whether you're currently working or receiving benefits it treats everyone equally by providing money as a replacement for what income you will lose due to studying. To ignore the money available from a student loan for benefit recipients would place them in a better position than non benefit recipients, essentially double dipping the public purse..

More importantly a student loan is not really a debt as such, it's only repayable at 9% on any earnings above the threshold for a maximum or thirty years whatever your level of borrowing is.. A graduate tax is a more appropriate description than a loan.

Lanzarote1938

Benefit rules evolve and change. For instance not many years ago mortgage interest was paid without penalty. now it is added as a charge on the property to be repaid when property sells. Who knows it is not inconceivable that nebefit payments could be treated like student loans and have to be repaid if/when the recipient earns a certain amount.

Pok3mon

Lanzarote1938 said:

Benefit rules evolve and change. For instance not many years ago mortgage interest was paid without penalty. now it is added as a charge on the property to be repaid when property sells. Who knows it is not inconceivable that nebefit payments could be treated like student loans and have to be repaid if/when the recipient earns a certain amount.

I do hope so, I know some body who paid off their house when interest rates was about 3% and below but SMI was paid at 6.5% flat rate over 12 years got a free house!