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Original poster

LCWRA and student finance

32 replies

bramblebug · 27/07/2023 15:30

I'm wondering if anyone has any experience or insight on this.

I'm on Universal Credit LCWRA due to mental and physical health, but I've been considering attempting a distance learning degree part time. If I applied for a student loan to cover the tuition fees, would this affect my benefits at all? Would I be allowed to do this?

OP posts:
Babyroobs · 27/07/2023 17:01

If it is open University I'm not sure you can get student loans ( I may be wrong ). If you were eligible for a student loan it would reduce your Uc pound for pound after a monthly amount is deducted. So they take your student loan annual amount and divide it between the number of months that your course runs for. Then they take £110 (I think ) off and this is disregarded and then the rest reduces your UC pound for pound. There are no exceptions to these deductions because you have LCWRA on your claim that I am aware of, as student loans are classed as unearned income so taken off your UC claim in full after the disregard.

Nodramaatleasttoday · 27/07/2023 17:14

student finance will lend you your course fees. This isn’t counted for DWP benefits .
if you take out maintenance loans then they are deducted from your benefits- pound for pound.
so if you do an OU course part time and aren’t entitled to a maintenance loan your benefits will stay exactly the same.

Original poster
bramblebug · 27/07/2023 17:48

Thank you for the replies. If I understood right, both answers contradict each other so I'm a bit confused.

Am I right in thinking that as long as I only have tuition fee loans my UC lcwra isn't affected?

OP posts:
titchy · 27/07/2023 17:56

Baby roots is talking about maintenance loan which you won't be entitled to (unless you have a disability or study in person). nodrama talks about fee loan which you will be entitled to assuming you haven't already had any. A fee loan will not affect your benefits.

Original poster
bramblebug · 27/07/2023 18:01

titchy · 27/07/2023 17:56

Baby roots is talking about maintenance loan which you won't be entitled to (unless you have a disability or study in person). nodrama talks about fee loan which you will be entitled to assuming you haven't already had any. A fee loan will not affect your benefits.

Thank you for clearing that up, and all of you for the help!

OP posts:
Babyroobs · 27/07/2023 21:01

bramblebug · 27/07/2023 17:48

Thank you for the replies. If I understood right, both answers contradict each other so I'm a bit confused.

Am I right in thinking that as long as I only have tuition fee loans my UC lcwra isn't affected?

Yes correct.

Babyroobs · 27/07/2023 21:02

bramblebug · 27/07/2023 17:48

Thank you for the replies. If I understood right, both answers contradict each other so I'm a bit confused.

Am I right in thinking that as long as I only have tuition fee loans my UC lcwra isn't affected?

Apologies I should have made it clearer I was talking about maintenance loan in my post.

Relaxinghammock · 28/07/2023 10:16

If you are entitled to a maintenance loan, it will be taken into account for UC whether you actually take the loan or not.

Original poster
bramblebug · 28/07/2023 17:09

Relaxinghammock · 28/07/2023 10:16

If you are entitled to a maintenance loan, it will be taken into account for UC whether you actually take the loan or not.

This means I cold lose UC even if I don't take the loan?

OP posts:
Original poster
bramblebug · 28/07/2023 17:10

*could

OP posts:
Babyroobs · 28/07/2023 17:32

bramblebug · 28/07/2023 17:09

This means I cold lose UC even if I don't take the loan?

Show quote history

Yes you could but it would depend how much your Uc award is and how much your maintenance loan would be. It is unlikely you would lose it all especially if you have rent element on your claim.

titchy · 28/07/2023 17:36

You won't be entitled to a maintenance loan though (unless healthcare or science or you have a disability) so that situation won't arise.

Relaxinghammock · 28/07/2023 17:38

If the deduction wipes out the UC award, then yes.

Lougle · 28/07/2023 17:39

titchy · 28/07/2023 17:36

You won't be entitled to a maintenance loan though (unless healthcare or science or you have a disability) so that situation won't arise.

I would have thought that someone who qualifies for LCWRA is likely to count as someone with a disability, though?

Relaxinghammock · 28/07/2023 17:39

titchy · 28/07/2023 17:36

You won't be entitled to a maintenance loan though (unless healthcare or science or you have a disability) so that situation won't arise.

The fact the OP has LCWRA element means she may well be entitled to a maintenance loan, which is why I mentioned if she is entitled to it.

titchy · 28/07/2023 17:45

Only if that disability prevents her studying in person.

titchy · 28/07/2023 17:46

But yes I take your point that if someone is entitled to it they are assumed to be receiving it for UC calculations.

Dreemhouse · 28/07/2023 17:47

The maintenance loan that you are entitled to, even if you don’t take it, will be taken into account in calculating your UC. When I was on UC, I received maximum maintenance loan and this reduced my UC from approximately £700 to £300 pm but they cocked the calculation up over the entire period I was studying and on UC so I was in a constant state of over and underpayments. If you speak to citizens advice, they should be able to advise exactly how much UC you should be receiving based on how much maintenance loan you would be entitled to

titchy · 28/07/2023 17:48

From here: https://www.gov.uk/student-finance/parttime-students

LCWRA and student finance
Relaxinghammock · 28/07/2023 17:49

titchy · 28/07/2023 17:45

Only if that disability prevents her studying in person.

Which is exactly why I said “If you are entitled to a maintenance loan…” not “you will be entitled”.

Original poster
bramblebug · 28/07/2023 22:08

I went through the application (although I didn't submit it) and I said I was unable to attend a course in person. It still offered a maintenance loan at the end for over £2000 with the option to refuse it.
So I'm more confused than ever :(

OP posts:
Relaxinghammock · 29/07/2023 08:51

If you are entitled to a maintenance loan, then regardless of whether or not you take it, UC will take it into account when calculating deductions.

CuriouserandCurious · 29/07/2023 09:04

Off topic but OP l am in a similar situation. I am LCWRA but on legacy benefits (ESA and TC). I am chronically ill and would love to study at my own pace to beat the boredom of being housebound .

I am put off applying for courses though because I’ve heard it can trigger a re assessment of capability. Have you encountered this issue?

I am intellectually capable of doing the course but it will take me an extended period of time due to my disability.

Original poster
bramblebug · 29/07/2023 09:41

Relaxinghammock · 29/07/2023 08:51

If you are entitled to a maintenance loan, then regardless of whether or not you take it, UC will take it into account when calculating deductions.

I understand that but from what I gathered here, I shouldn't be entitled to it if I'm not able to attend in person.

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Original poster
bramblebug · 29/07/2023 09:43

CuriouserandCurious · 29/07/2023 09:04

Off topic but OP l am in a similar situation. I am LCWRA but on legacy benefits (ESA and TC). I am chronically ill and would love to study at my own pace to beat the boredom of being housebound .

I am put off applying for courses though because I’ve heard it can trigger a re assessment of capability. Have you encountered this issue?

I am intellectually capable of doing the course but it will take me an extended period of time due to my disability.

This is exactly what I'm worried about too. I haven't gotten as far as applying and I'm concerned that if I even try it'll work out badly because it will look like I'm able to do something I'm not.

It's a tough situation, feels like we're stuck.

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