Mature student, maintenance loan & housing benefit.

emfmummy2009

Hi,
I'm hoping someone can help me with a query that I have regarding a student maintenance loan and housing benefit. I have been informed by the university centre that I've applied to, that I need to inform housing benefit/ local council once I start my course in September 2015 that I'm in receipt of a student maintenance loan. Apparently student grants aren't considered in the calculation of a housing benefit claim, yet the maintenance loan is? This makes no sense to me as it's a loan? It's something I have to pay back? I'm just wondering if anyone has been in this position and wanted to make sure the information I've been given is correct. I'm a mature student, who works part-time going on to study interior design with one child, who has to claim housing benefit to top up my wages for rent. Surely, if this is correct, that the loan is taken into consideration then my best option is to opt out of taking the loan as housing benefit is not something I have to pay back but something I'm entitled to? Any help would be appreciated. I'm just trying to weigh up my options etc. Thanks in advance.

Reply 1

Tiger Rag

22

Your loan will be counted as income whether you take it or not.

Reply 2

emfmummy2009

OP

2

Original post by OU Student

Your loan will be counted as income whether you take it or not.

Your answer doesn't make any sense? Surely if I don't take the maintenance loan, as you can opt out of receiving the loan, it will not be classed as income to the council, as I won't be receiving it... I'm trying to find out if the information I have been given is correct as the maintenance loan is a loan I have to pay back and housing benefit is something I don't...

Reply 3

applicationa

2

Original post by emfmummy2009

Your answer doesn't make any sense? Surely if I don't take the maintenance loan, as you can opt out of receiving the loan, it will not be classed as income to the council, as I won't be receiving it... I'm trying to find out if the information I have been given is correct as the maintenance loan is a loan I have to pay back and housing benefit is something I don't...

It does make sense. I dealt with this question when I was an advisor. Housing benefit is there to help people who don't have any other source of income available to them. Maintenance loan is a source of income that is available to you. If you turn it down that's immaterial to the fact that it is available to you. If the rules weren't this way, everyone who is eligible for housing benefit while studying full time could just turn down maintenance loan and claim housing benefit instead.

Reply 4

emfmummy2009

OP

2

Original post by applicationa

It does make sense. I dealt with this question when I was an advisor. Housing benefit is there to help people who don't have any other source of income available to them. Maintenance loan is a source of income that is available to you. If you turn it down that's immaterial to the fact that it is available to you. If the rules weren't this way, everyone who is eligible for housing benefit while studying full time could just turn down maintenance loan and claim housing benefit instead.

Well now you've explained as to why the loan gets taken into account regardless of whether you take it or not, it makes sense. I just wanted to make sure I was making the right decisions etc...

Reply 5

Tiger Rag

22

Some of the loan is disregarded (ignored) as income. Your tuition fees are ignored in full and if you're entitled, the special support grant is ignored in full as income for student finance.

Reply 6

emfmummy2009

OP

2

Original post by OU Student

Some of the loan is disregarded (ignored) as income. Your tuition fees are ignored in full and if you're entitled, the special support grant is ignored in full as income for student finance.