PIP/Universal Credit Student Loans

mazworld15

Hi wonder if anyone can help, my son couldn't stay at Uni because he couldn't live alone. He is now doing Open University and has got the Student loan for fees but not maintenance. They've said for him to get medical proof he has to be at home to get the maintenance loan. We could get this but would we be better him not getting it as it will affect his UC, was ESA, tia

beanielou

mazworld15 said:

Hi wonder if anyone can help, my son couldn't stay at Uni because he couldn't live alone. He is now doing Open University and has got the Student loan for fees but not maintenance. They've said for him to get medical proof he has to be at home to get the maintenance loan. We could get this but would we be better him not getting it as it will affect his UC, was ESA, tia

Have asked for this to be moved to be moved to the benefits board for a better response. 

Newcad

mazworld15 said:

....... has got the Student loan for fees but not maintenance. They've said for him to get medical proof he has to be at home to get the maintenance loan. We could get this but would we be better him not getting it as it will affect his UC, was ESA, tia

The rule in UC is that if you could access income finance other than UC, then you should access it in preference to UC.
If you don't access finances that you could do then UC will treat it as if you had taken them anyway, and will reduce your UC accordingly.
It's called having 'Notional Income'.

So generally if you could access finance then you should access that finance or UC will treat you as if you had done anyway.
That wouldn't normally include taking out a loan rather than claiming benefits - but with student finance different rules apply.

With student finance the 'Notional Income' rule covers maintenance loans:

https://www.gov.uk/guidance/universal-credit-and-students#how-student-income-affects-universal-credit

The maximum student maintenance loan you’re eligible for will be taken into account when working out your Universal Credit. This applies even if you have:

• not applied for a loan
• not accepted the loan
• decided not to take the full amount
• received a reduced loan because someone has contributed to your living costs, for example your parent, guardian or partner
• received a reduced loan because you receive a grant

So he needs to get the required evidence and apply for the maintenance loan, otherwise UC will assume that he is entitled to the maximum loan and deduct it from his UC anyway.
Of course if the application is refused then he is not entitled to the maintenance loan so nothing would be deducted.

mazworld15

Newcad said:

mazworld15 said:

....... has got the Student loan for fees but not maintenance. They've said for him to get medical proof he has to be at home to get the maintenance loan. We could get this but would we be better him not getting it as it will affect his UC, was ESA, tia

The rule in UC is that if you could access income finance other than UC, then you should access it in preference to UC.
If you don't access finances that you could do then UC will treat it as if you had taken them anyway, and will reduce your UC accordingly.
It's called having 'Notional Income'.

So generally if you could access finance then you should access that finance or UC will treat you as if you had done anyway.
That wouldn't normally include taking out a loan rather than claiming benefits - but with student finance different rules apply.

With student finance the 'Notional Income' rule covers maintenance loans:

https://www.gov.uk/guidance/universal-credit-and-students#how-student-income-affects-universal-credit

The maximum student maintenance loan you’re eligible for will be taken into account when working out your Universal Credit. This applies even if you have:

• not applied for a loan
• not accepted the loan
• decided not to take the full amount
• received a reduced loan because someone has contributed to your living costs, for example your parent, guardian or partner
• received a reduced loan because you receive a grant

So he needs to get the required evidence and apply for the maintenance loan, otherwise UC will assume that he is entitled to the maximum loan and deduct it from his UC anyway.
Of course if the application is refused then he is not entitled to the maintenance loan so nothing would be deducted.

Thank you so much, i really appreciate it

magicmoneyportaloo

In terms of the maintenance loan the rules are very strict about borrowing it for distance learning on grounds on inability to attend physically. So I think it's unlikely that it would impact a UC claim as it's not the norm to have a maintenance loan in these circumstances. I am not convinced by Newcad's interpretation in that the DWP will assume that your son is eligible for a maintenance grant.

If you son can manage on UC this would be better than borrowing more money on student finance anyway (though I suppose this depends on your son's earning potential after graduation).

I wish your son the best of luck in his studies.

huckster

@newcad is correct in regard to UC taking into account student finance available. UC are not experts in student finance and it is up the claimant to prove they are not eligible for student maintenance finance, by applying for it and if rejected using the rejection letter as evidence.