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Mature study and retraining

Talk to other Mumsnetters who are considering a career change or are mature students.

Original poster

Student loans and UC

8 replies

gonutkin · 24/08/2022 15:27

I'm wondering if anyone can shed some light on this for me that's been through it as I cannot find anything online to help. My last resort will be citizens advice.

I am a part time student with 3 children, my partner works and we get a top up of UC as his income is low and I was made redundant whilst pregnant.

When I applied for student loans, any money I got was taken off the top up of universal credit. So I replaced that with the loan money, so effectively it cancelled the other out.

This year I am thinking to just not apply for the loans as I don't actually get any extra from it and will have to pay it all back even though it's just coming off the universal credit payments. But I've read online that they still take any potential loans into account even if you don't apply for it? So I wouldn't get any money but they would still deduct it from my top up payments.. it just doesn't sound right. Now I'm worried I won't apply for the loan but will still lose the money from UC, in which case I would be better getting the loans to pay the bills and just paying them back.

Does anyone know how this works or has been through similar? It's getting close to cut off so I really need to submit my application for finance but don't want to leave our family in a bad position.

Thanks

OP posts:
Soontobe60 · 24/08/2022 15:37

www.turn2us.org.uk/Benefit-guides/Full-time-students-and-benefits/How-much-Universal-Credit-will-I-get
This says they will assume youve applied for the student loan and your UC will be calculated accordingly.

Original poster
gonutkin · 24/08/2022 15:43

So it's true then, I wonder if it's the same for me as I'm a part time student. I can't find anything on the internet for part time students advice on this. It just all seems really backwards to take money off someone even if they aren't receiving it somewhere else when they are trying to better their future

OP posts:
Lougle · 24/08/2022 15:47

It's classed as deprivation of income. You have access to the loans, so you should take them and not expect the benefit system to replace that money. If you choose not to, the DWP assess your income as if you had taken the loans anyway. It's the same with, for example, pensioners who might think of selling their home at less than market rate to take advantage of having care fees paid for them.

Original poster
gonutkin · 24/08/2022 15:51

Lougle · 24/08/2022 15:47

It's classed as deprivation of income. You have access to the loans, so you should take them and not expect the benefit system to replace that money. If you choose not to, the DWP assess your income as if you had taken the loans anyway. It's the same with, for example, pensioners who might think of selling their home at less than market rate to take advantage of having care fees paid for them.

I see, so for a student they would be better off short term to not study at all and claim universal credit that doesn't need paying back, than to study and rack up student debt that does need paying back.
I understand that they expect you to take the loans instead, which would be ideal if you could get it paid monthly instead of 3 times a year 😅

OP posts:
Britjtx · 24/08/2022 15:51

I’m a full time student but that’s right, they take assume you have received the maximum amount available to you and calculate your UC on that basis, so you are better off taking the loan. It does seem crazy. I’m unlikely to ever earn enough to fully repay the loan, but I need this degree to do the career I want to do.

Original poster
gonutkin · 24/08/2022 15:55

@Britjtx it does seem crazy to me too! It's put me off a bit as I struggled last year to make each payment last for the term. I need a new laptop too which the maintenance loan is supposed to pay for I assume but can't because the money has to go on bills instead.

Thanks for the replies this has answered my questions and I will definitely be applying for the loans as we cannot live without them

OP posts:
Britjtx · 24/08/2022 16:14

Being paid in 3 instalments is a pain and the last one has to last all Summer but I try to budget as I have received it over 12 months so say £8k received for the year, stick it in savings and move £666 into my current account each month. Does your college or university have a laptop loan service you can use?

It’s a horrible situation to be in. You’re trying to better yourself to end up with better career prospects but can certainly feel like they give with one hand and take with the other. You can see how people get stuck in the benefits system.

Original poster
gonutkin · 24/08/2022 16:20

Britjtx · 24/08/2022 16:14

Being paid in 3 instalments is a pain and the last one has to last all Summer but I try to budget as I have received it over 12 months so say £8k received for the year, stick it in savings and move £666 into my current account each month. Does your college or university have a laptop loan service you can use?

It’s a horrible situation to be in. You’re trying to better yourself to end up with better career prospects but can certainly feel like they give with one hand and take with the other. You can see how people get stuck in the benefits system.

That's literally how I feel, couldn't have put it better myself but that is a great idea about the savings accounts and transferring. I'm definitely going to do that. They don't unfortunately but was hoping to save towards one for this year, who knows if that will be possible with the rising bills though 😳 I do have a working laptop so not all is lost 😊

OP posts:
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