Student finance and UC

[Wingingit202122]

Need some balanced opinions here!
Single parent of 3 and I have just started a undergrad degree course at University. Just had my Universal Credit statement come through and they are deducting all of my student finance from my monthly payment (Gone from £1300 to £600) as they class it as an income
Im pretty p’d off to say the least for 2 reasons

1. I was only being deducted £280 a month when I was working and making more money a month than the student finance pays
2. STUDENT FINANCE IS A LOAN! We have to pay the student finance back WITH INTEREST so I am majorly p’d at effectively having to pay it back twice. (Once through UC deduction and again back to SF)

And your UC isn’t yours because you didn’t earn it . It’s the tax payers.

Your debt when you finish will be the same as every other student (unless they've self financed). You can't expect to be given a free course and supported for 3 years, but everyone else has to pay for themselves.
The thing that really surprises me though is that you started a course and didn't consider how you were going to support yourself.
Do you think it's worth it in the long run?

Why should you keep getting all the UC when the student loan is meant to pay your living costs? It’s an income - it’s for living.

@Herja I've recently finished a course and took out a loan (for maintenance and fees). Should I have been able to claim UC to cover my living expenses and accomodation? Essentially are you saying the government should support all students?

No it doesn't prevent them but it might deter them in the same way it might deter a young 18 year old, a married 30 year old or a single 40 year old. It's the same for all, it's not particular to single parents. She won't pay CT irrespective of income so that's a win.

I hear you.
Same situation as a very mature student and single mother of 5. Re qualifying due to covid and lockdown wiping out my self employed income.
It was a struggle to gain any kind of definitive answer from UC coach through communicating on the journal prior to starting my course and it certainly wasnt clear in any guidance online - it took about 10 separate messages from my UC coach online to iron out exactly how the system worked and even then they got it wrong the first year and ended up having to repay me due to their miscalculation.
Basically in my experience the amount of Maintenance loan-ML (less any grants and the amount at the bottom of the student finance letter) is divided into the months of your active course i.e. start date 28th Sept to 21st July therefore the amount of ML would be divided over 10 months where those course dates affect the UC calculation periods ie from 22nd Sept to 21st July (mine is from 22nd of each month) so say the total amount of ML less grants is £8,000 (with a disregard of the first £110 each month) then £690 would be deducted amount each month £ for £ off your UC calculation as unearned income.
In the other two months (outside of the course dates) your UC calculation is the full figure minus any employed or self employed work you do which is deducted in the normal way with the first £570 of earned income disregarded and then every pound thereafter deducted 55p per £1 - which is also the same through the 10 months of ML deduction if you chose to work part time throughout.
I also did query with UC why student finance (loan) is classed as income when it is ultimately a Loan and in any other sector of finance it is treated as a loan and not recognised as a source of income as wished to pay a mortgage but couldn't do so as even though UC see it as Income your mortgage lender doesn't (because its a loan!).
It certainly isn't straight forward nor clear of how Student finance impacts UC and the system certainly doesn't encourage older work force such as myself to retrain especially as a single parent.
Hope this is helpful and wishing you the best of luck with your course. It is much more demanding juggling family commitments with children at school, plus full time study, plus part time work.

@Wingingit202122 don't be so sure you'll pay back the loan. I'm 6 years out of graduating.

My student loan total has gone UP because the interest rate accrues faster than I pay it off. And I mean it's gone up by thousands.

I'm 27. I doubt I'll ever pay it back at this rate.

Of course UC can. If you have the figures they can calculate it through their system but might not want to as it's more work for them. Citizens Advice can do it on their benefit calculator.