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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think I shouldn't lose Hosuing Benefit because I am taking out a Student Loan?

86 replies

StyleO · 24/09/2019 10:15

I have been told that when I become a Student and receive a Student Loan, it will affect my housing benefit. I live with a partner that is a dependent to me plus two children. I have to pay the student loan back, is it fair that I have to use that to pay rent? I am told that the old system of a grant and loan didn't affect housing benefit!

OP posts:
MrsMaiselsMuff · 24/09/2019 10:19

The student loan is treated as income, after a certain disregard. It is intended to be income, as although it is a loan, few ever fully pay it off.

Is your partner unable to work?

Original poster
StyleO · 24/09/2019 10:22

No, partner cannot work

OP posts:
gamerchick · 24/09/2019 10:22

Can your partner not get a job that will cover the rent at least?

gamerchick · 24/09/2019 10:23

Then you have a choice to make. The system isn't fair or enabling. It's not designed that way.

MrsMaiselsMuff · 24/09/2019 10:24

Is your partner disabled, are they receiving benefits in their own right?

SpringFan · 24/09/2019 10:24

I was about to post something similar. My understanding is the Student Loan is treated as income. When DS applied for free prescriptions or dental treatment, his loan was taken ino account and he didn't qualify.

SilverDragonfly1 · 24/09/2019 10:24

It is extremely unfair, but it happens anyway like many unfair things. I just scraped into the grant+loan system before it stopped and the same thing happened. It's a case of deciding whether the career you can have after graduating makes up for being short now. I only managed because my husband gets disability benefits that are not income related so there was some regular money coming in.

Asta19 · 24/09/2019 10:29

You don't have to claim the loan and then the benefits remain in place. I was in that situation and I just chose not to take the loan. Although that was a good few years ago now so it may have changed, but you should check.

Inebriati · 24/09/2019 10:30

You should check because if you are not considered available to work you can't claim some benefits.

MrsMaiselsMuff · 24/09/2019 10:30

Asta19, if you don't claim the loan it is still counted as notional income.

SpringFan · 24/09/2019 10:42

Yes, Mrs Muff is right. DS only took the loan for first year as we gave him money to live on for the rest of Uni, and when he reapplied it was still included as notional. Apparently it was "income" he was forgoing!

Tilltheendoftheline · 24/09/2019 10:45

If your partner can not work, they kust be getting some benefits?

Can you make the Bill's between the benefits and your loan?

swingofthings · 24/09/2019 10:46

Why should the thousands of 18yo have to pay their rent but because you chose to have children before studying, tax payers should pay yours?

InglouriousBasterd · 24/09/2019 10:48

Ah I had this. They discounted 70% I think as long as I could show fees etc so it didn’t affect the HB. But I had to send them loads of paperwork confirming everything. I was also part time only which may have made the big difference.

StephenQueenBooks · 24/09/2019 10:51

I used my student loan and money from my weekend job to pay my rent at £135 a week. I still had money left to live on and even to build up savings.

Are you eligible for a grant? Have you thought of working part time outside of uni hours?

MrsMaiselsMuff · 24/09/2019 10:56

The situation for part time and postgraduate students is different to that for undergraduate students.

For undergraduate courses, the tuition fee loan is separate and not counted at all for benefit purposes.

MorganKitten · 24/09/2019 11:00

Most students use the loan towards rent, it’s standard.

thaegumathteth · 24/09/2019 11:01

If your partner is receiving benefits make sure your new 'income' is taken into account too.

Teachermaths · 24/09/2019 11:03

If your partner can't work they should be claiming benefits.

thaegumathteth · 24/09/2019 11:03

And when I was a student with a loan I had to pay rent with that and money from my part time job. Can you work part time ?

BarrenFieldofFucks · 24/09/2019 11:07

I guess you have made the choice to stop work in order to study? So your loan is treated as income. It is very unusual for any family to have absolutely no earners and have one studying full time. Can neither of you work even part time? Can you afford to be a full time student?

BarrenFieldofFucks · 24/09/2019 11:08

And the loan is there for rent, travel etc...what did you think it was for?

Cheeserton · 24/09/2019 11:09

Had to pay rent using my student loan, and take employment. It's what it's for really. Living expenses while a student.

Lagatha · 24/09/2019 11:09

It doesn't mean you won't get any hb. Also it's only counted as a term time income. It's taken into account so you need to do a change of circumstances form and provide the details to your LA

U2HasTheEdge · 24/09/2019 11:09

I get SF and I want to have a little cry when I pay my full rent with it.

I am thankful that I have not gone over to UC yet though as they take the income into account for benefits as well as HB. I have one year left of study so hoping to keep on TC until then.

To be fair, once I have paid my rent I still have enough SF left for what I need.

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