Income Support & Student Finance

[d4funky1]

Hi,

 

Firstly I hope this is the correct place to post this.

 

Here is my situation that I hope someone will be able to shed some light on for me.

 

I am in receipt of Income Support due to the fact that I provide care for our disabled daughter.

 

My partner receives carers allowance.

 

Through income support we get our interest paid on our mortgage (a god send).

 

Last year I decided to begin studying a degree. The hours were minimal (16) and having checked with Income Support as long as it was under 21 hours there would be no problem.

 

I applied for and received Student Finance as follows:

 

Tuition Fees: £6000 - paid directly to the college

 

Maintenance Loan: £4290

 

Broken down as:

 

£3575 Not based on household income

+

£2340 Based on household income

-

£1625 Loan replaced with grant

 

Maintenance Grant: £3250

Parents Learning Allowance: £1508

Adult Dependant's Grant: £2642

 

I have spoken with Income Support today for a review/update and on giving them these details they have informed that I could have my benefit stopped and have to repay any overpayments.

 

They couldn't however tell me how much or when.

 

The mortgage interest is huge for us and if it came down to it I would leave the course to maintain the income support and payback whatever was owed.

 

Can anyone advise what amounts from the above they would take into account and how they would work this out?

 

Thanks in advance

D4

[nyfle]

Eek. It's hard to say how much the over-payment will be as you'd need to share a lot more information, however I can tell you a few things. First, the Parents' Learning Allowance component of the above should be disregarded[1]. And second, student loans are treated as income. Bearing this in mind, that would leave you a notional income of - if I have done my sums correctly - £16182. Which is, sadly of course, over the £16k threshold.

 

Sorry I can't be of more help. I'll raise a SOS with the site team who may be able to help further!

 

[1] https://www.gov.uk/parents-learning-allowance/overview

 

Edit: Easy for me to say, but try not to worry too much. The DWP will write to you once the over-payment has been calculated. Once you have this, then would be the time to come back here, not least because the department are notorious for calculating over-payments incorrectly. Once it's been calculated (the over-payment), they'll want any money you weren't entitled to back, plus you may additionally have to pay a penalty. But before thinking about that, can you remember ever being warned by IS about changes of circumstances wrt income? And did you tell your adviser that you were doing a full-time degree? You might want to get in touch with Citizens Advice (CAB) as they'll have dealt with this situation a lot and might be better placed to help you.

Edited September 17, 2013 by nyfle

[abc123def]

Yes, that should all have been declared. Generally student finance takes people over the allowance to be able to receive any IS at all.

[d4funky1]

Thanks for your info so far.

 

Please let me know what info you need and I'll gladly provide it.

 

I was told and have read that my partner can apply for Income Support instead of me. Would she receive the same amount we are receiving now? Also would we receive the same amount of mortgage interest payments after the 13 week waiting period?

 

Thanks again.

D4

[Nystagmite]

Some of the student loan is ignored. (disregarded) Also, I think you should have been entitled to the special support grant and not the maintenance grant. This is ignored in full.

 

I think the amount of loan disregarded each year changes.

[abc123def]

Not much is disregarded. For me it was £250 but that was 2 years ago.

[d4funky1]

Hi,

 

I've been to the CAB and also spoke with Income Support, Student Finance & my college finance and what I have gathered so far is this:

 

The Tuition Fee of £6000 is NOT included

The Maintenance Loan of £4290 IS included

The Maintenance Grant of £3250 IS included

Parents Learning Allowance of £1508 is NOT included

Adult Dependant's Grant of £2642 IS included

 

This would take the income to £10,182 so under the £16k

 

I am not entitled to Special Support Grant

 

Citizens Advice can only see me for an in-depth interview on the 24th.

 

I wonder if this would in the future still allow me SOME income support as I fully expect to be paying some back.

 

Hopefully after they take travel and books etc into consideration could be OKish.

 

Please keep the advice coming as its really helping me build the bigger picture.

 

Thank

D4

[d4funky1]

Found this great resource:

 

http://www.sussexstudent.com/advice/content/456313/online_advice/benefits__tax_credits/how_will_my_student_income_affect_my_benefits/

[Nystagmite]

The £16k is related to savings and not income.

[d4funky1]

Ok so based on this further information I have come to the following conclusions:

 

Tuition Fees - Not Included

Maintenance Loan = £4290 - £693 for travel, books and equipment will be ignored as well as a further £10 a week (£520) = £3077

Maintenance Grant = £3250

Parent's Learning Allowance = Not Included

Adult Dependant's Grant = £2642

 

Total = £8969 - this figure is to be divided over a 43 week period leaving me 9 weeks of total claim allowance.

 

I suppose the next question is what's the difference of income support allowance for someone earning £8969 more than they were?

 

Any help would be appreciated as I continue to search on.

 

Thanks

D4

[antone]

The £16k is related to savings and not income.

 

Yes, this is the important point. Student grants or loans (or rather, that part of them which is taken into account) is income, not capital. When working out an overpayment, income should be deducted pound for pound from IS entitlement. So the £16k is not relevant.

 

I'll need to check if any weekly disregards apply, but this is a complex question.

[d4funky1]

Thanks for still keeping an interest in this post.

 

I've had the letter through and sent of the college agreement along with my student finance for 2012/13 along with the following covering letter:

 

To Whom It May Concern:

 

Please find enclosed a copy of my college and student loan details for the year 2012/13 as requested at your recent telephone review.

 

I receive Income Support due to the fact that I provide substantial and regular care for our disabled daughter.

 

My daughter receives the highest components of both mobility and care disability living allowance and my partner receives carer’s allowance.

 

As my daughter, 3 at the time, began to partake in a few more hours of schooling, I decided to look into beginning a degree course.

 

Heavily relying on the mortgage interest payments that the Income Support gives us I contacted the Income Support department in August 2012 via phone to enquire about the possibility of starting a degree and if my course would be deemed as full or part time, knowing that full time students cannot claim Income Support.

 

The advisor explained to me that as long as the course ran no longer than 21 hours a week, then, in the eyes of Income Support this would be classed as part time.

 

With that information, and knowing that my course was only 16 hours per week I enrolled and began studying.

 

Should the answer from the advisor have been a clear indication that my course would be classed as full time, I would not have started the course at all as this, in my eyes, would have stopped our Income Support and put us in a financially difficult position and I strive to always do what is financially best for my family.

 

From that point I applied with Student Finance, for what I thought, was financial support for a student in my situation (mature & parent) and received grants and loans detailed on the award notice.

 

Fast forward to 17th September 2013 and whilst going through my Income Support review, the shock and sheer blood draining news, that not only could my Income Support be stopped altogether but the fact that I may have to pay back all monies that have already been, as you class, overpaid, to me.

 

Having lost sleep that night and on meeting with Citizens Advice the next morning it is clear to me that overpayment, if any, was not caused by either misrepresentation or failure to disclose.

 

As previously mentioned, the mortgage interest payments are so dear to us as a family that had the advisor at the time stated that my course would see me treated as a full time student AND any financial help I received had to be declared as income, then I simply would not have started the course.

 

I now find myself in a position where my 2nd year starts on the 27th September and with Student Finance already arranged for 2013/14, that I don’t want to go back and jeopardise a benefit so important to us as a family.

 

The advisor mentioned that this could take a long time to sort but I am not sure what to do and feel in limbo.

 

I don’t want to continue and create further overpayments and would really like some clarification on this matter at your earliest convenience.

 

Should you require any further information please do not hesitate to contact me.

 

Many Thanks

 

I have also found out the following:

 

Will I always have to repay if I misrepresented or failed to disclose?

 

Even if an overpayment is recoverable, the benefits office can decide not to seek recovery or may accept partial recovery.

 

You can ask the debt recovery centre not to recover or to accept a lower rate of repayment. They are unlikely to agree unless you can show that you did not know that you were being overpaid and that it is very difficult for you to repay. You should contact the office shown on the letter you have received*about the overpayment recovery to discuss this. We*also recommend that you seek advice from a benefits*adviser.

 

There is a maximum rate of deduction from:

 

Income Support

income-based Jobseeker’s Allowance

income-related Employment and Support Allowance

Pension Credit.

 

For 2012/13, this is £10.65 a week, or £14.40 where the overpayment was due to fraud or you have agreed to a benefit penalty.

 

The waiting game begins.

 

Thanks

D4

Edited September 24, 2013 by d4funky1