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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:
GrimalkinsCrone · 24/09/2019 11:11

Maybe now is not the time for you to become a full-time student. You have three dependents, prioritise them.

OneAutumnMorning · 24/09/2019 11:11

I was told that with two children you can be supported as a full time student. Your partner has no income right? So that shouldn't affect it.

I know students at uni with children on full UC and a huge childcare element.

BarrenFieldofFucks · 24/09/2019 11:13

My student loan paid my rent plus travel season ticket. I then worked to earn money for food etc. Why would you be any different to me? I have to pay my loan back too.

What did you think the loan was for?

U2HasTheEdge · 24/09/2019 11:32

Maybe now is not the time for you to become a full-time student. You have three dependents, prioritise them.

Well speaking as a student who is also working, with four dependents, studying is prioritising them because I will soon be earning more money which will benefit the whole family.

Therealjudgejudy · 24/09/2019 11:44

Why should tax payers pay your rent because you chose to have children before studying? Entitled much??

SweetPetrichor · 24/09/2019 12:03

A majority of students use their loan to pay living costs such as rent...why shouldn't you? What on earth would you use it for otherwise!

IAmALazyArse · 24/09/2019 12:10

Agree with PP that's what maintenance loan is for. Living expenses while studying. Is it leaving you massively short of money or will you be on about a same total income?

Actaea · 24/09/2019 12:15

Yes the old system allowed students to claim HB... 25 years ago. That’s a really long time. It’s not like the rules just changed last year!

Anyway the old system is irrelevant. What matters is the current system - under which students get no benefits and have to support themselves and pay their own expenses and tuition. It applies to all students not just you. They can’t and won’t make an exception for you so that’s pretty much the end of the discussion.

OlgaPolga45 · 24/09/2019 12:21

Why on earth wouldn’t you expect to spend your loan on rent? What did you think other students spend it on?

JudgeRindersMinder · 24/09/2019 12:24

I’d love to know what everyone who studies as a mature student is studying that’s going to end up with an amazingly well paid job, as that doesn’t happen in the area I live in. Call centres etc are staffed by graduates as they can’t get anything in their degree subject area

Adviceorhelp · 24/09/2019 12:31

Yes this is what happens. I went to university as a single mum. I had to borrow to pay my rent as you can’t claim benefits. I’m still paying the loans back 15 years later. It was worth it though. Do it anyway. I do remember how unfair it all felt though.

Actaea · 24/09/2019 12:33

JudgeRindersMinder I used to work at a university and when we were asked about why our courses didn’t result in employment our official response was that it’s an academic course of education not a vocational course designed to lead to employment.

IAmALazyArse · 24/09/2019 12:42

@JudgeRindersMinder really depends what degree people are doing and whether they end up with first, 2:1, 2:2 or god forbid third...
Law? Can be really good. Teaching? Nursing? Great.
Employability changes over time, so for example philosophy and religious studies were really bad when it comes to employability but who knows in 5 years?

Most of servers where I worked before had art degrees. Even years later, none does anything with art...

Ponoka7 · 24/09/2019 12:43

Therealjudgejudy
Because although it is counted as income, it is a loan.

If you take out a loan for any other reason, your HB doesn't stop.

OlgaPolga45 there we enter the discussion about who we target benefits to and if the aim of benefits is to prevent child poverty. Also if it's true that everyone has the same access to education. Which it isn't.

OddBoots · 24/09/2019 12:54

"If you take out a loan for any other reason, your HB doesn't stop."

Yes but with any other loan you would be expected to start paying it back straight away an the amount you pay each week/month/year doesn't change your benefit entitlement.

Does anyone know if benefits for graduates repaying their loans count income before or after repayments when being calculated?

LakieLady · 24/09/2019 12:56

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

That wouldn't help. Benefit entitlement is based on household income, so OP's student loan would still count.

Schuyler · 24/09/2019 12:57

How short will you be without housing benefit?
I’m on the fence because all students have living expenses and that’s what the loan is for. I assume you’re getting everything else you’re entitled to? If not, make sure you check.

KittyVonCatsington · 24/09/2019 12:57

I don't think it is unfair. It is exactly what a student loan is for.

BarrenFieldofFucks · 24/09/2019 13:01

Loans are only repayable at a reasonable salary level. They are to cover living costs, like rent, while studying.

switcharoonie · 24/09/2019 13:03

God, don't get me started! I'm soon to receive a masters loan, where 70% is disregarded as an average tuition fee cost, with the rest counted as income. Mine is distance learning so is on the cheap side, and will still take 90% of the loan.

When I queried this with the housing benefit woman, she said that with respect, it was my choice what to spend the loan on. I replied that if I did not pay the tuition fees with the loan, I would not be a student so would have obtained the money fraudulently. She didn't respond to that point! Not her fault of course, and I was v polite - it's governmental regulations, I just thought that was a particularly strange argument in favour of it. Also think it's weird that any other kind of loan is not counted as income - kind of wish they stuck to the old postgraduate bank loan scheme. But I'm grateful I can do it either way.

It is what it is. I work too, am currently trying to increase my hours, and I'm a single parent who gets no maintenance. Will have to tighten my belt - will save on council tax as well which helps a lot. But at the end of the day, if you can just about afford it, and it's going to increase your earning potential in the future, it's worth it (or that's what I'm hoping)!

sashh · 24/09/2019 13:19

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.

I was forced to take out the loan,but the the benefit stayed in place.

OP

Check and double check because the rules are constantly changing and it may be that your partner can claim.

Are you getting any extra loan for your child?

Also check what happens if you study part time, it might be worth studying over more years.

chemicalelephant · 24/09/2019 13:21

If you take out a loan for any other reason, your HB doesn't stop.

If you take out a loan for any other reason, you're still expected to be able to work/have a job, and benefits are based on that. Student loans count as income because you're a full time student and therefore cannot work full time.

threeamclub · 24/09/2019 13:27

Students have to pay for their rent with their maintenance loan, why shouldn't you? I can't afford to live at uni or travel to one (as the nearest is over 2hrs away) so I'm doing my degree online. You have to make sacrifices sometimes.

Tilltheendoftheline · 24/09/2019 13:30

Benefit entitlement is based on household income, so OP's student loan would still count.

If the partner cant work theres a possibility the partner can get pip.

Asta19 · 24/09/2019 13:32

Why should tax payers pay your rent because you chose to have children before studying

That's a very short sighted attitude. I studied after having kids and, as a direct consequence of that, I got a well paid job. Therefore paying a substantial amount in tax. People on minimum wage don't pay much tax and, if they have kids, often receive top up benefits. I've never had to claim a penny since I graduated. Do you really think it would have been better for me to stay on minimum wage and have to claim top ups for the next however many years?