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24+ Study Loans and effect on income-related benefits


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I have heard mixed details about this matter.

The Student Finance information seems to indicate that as the loan is only for fees, and paid to the college, it is not counted as income but my friend has been told otherwise.

Can anyone point me to specific information showing definitive answer please.

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Thanks both but I need to find where it actually says that as my friend was told by DWP counts as income even if only paying fees so he needs proof in actual chapter and verse. It is only a part time Level 3 course and the hours are fine with DWP just keep saying the loan would be classed as income apparently .

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I totally agree Nystagmite and I also have found that bit about it being fees that go to College, but the other information is not black and white and DWP have told my friend will be counted as income (verbally via phone) so he is going to try and pay instalments himself unless I can let him have information he can believe.

It certainly should not be counted as income *(logically) if being used entirely to pay fees for a course that will be likely to increase his employment chances.

He is on Income-Based ESA at the moment and course is only 5 hours a week.

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If this was me, I would:

- get the information in writing from the company who does the loan (I think it's student finance england) that it goes straight to the college

- get the information from DWP in writing that it's supposedly classed as income

 

The college should also be able to advise too.

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The college have given out the leaflet that states that it goes straight to college and DWP are not denying that it goes to College only that just because that is the case it does not exclude it from being counted as income, apparently. My problem is that it not my problem but a friend who is exhausted with having to deal with such matters and is not prepared to take on DWP as he has been told this on more than one occasion.

I will probably ring Student Finance myself and see what they can do to help.

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Update...Student Finance say to contact the appropriate office for Benefits and cannot confirm anything. This is worrying me. How can a loan be seen as income when it is to be paid back and only funding a course not helping with living expenese?

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Update...Student Finance say to contact the appropriate office for Benefits and cannot confirm anything. This is worrying me. How can a loan be seen as income when it is to be paid back and only funding a course not helping with living expenese?

 

Loans for tuition fees are not counted as income for ESA purposes. I know this from my own DWP days. I've been trying to find the relevant DMG online - I know it's there somewhere - but my Google skills are failing me tonight. Hopefully I should be able to find it soon. I guess the Student Finance people won't want to say for sure either way since they're not experts on benefit rules.

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Thank you id6052. I was sure I'd looked at DMG51, but I must have missed the relevant bit.

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Thank you id6052. I was sure I'd looked at DMG51, but I must have missed the relevant bit.

 

There is clearly a DWP conspiracy to cloak this information using a Klingon-type shield as I couldn't find it either, even though I sort of knew where it would be.

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There is clearly a DWP conspiracy to cloak this information using a Klingon-type shield as I couldn't find it either, even though I sort of knew where it would be.

 

And here I thought the DWP was a signatory to the Treaty of Algeron, 2311, that prohibited human use of such technology.

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DMG is the Decision Makers' Guide, so DMG51 is DMG Chapter 51.

 

Basically, what the DMG does is take the law, as defined in the link in post 15 above, and provide guidance to Decision Makers as to how the law should be applied. DMs are not lawyers, and there are also some cases (such as "are two people living together?") where the law doesn't have a clear and unequivocal definition. So the DMG helps in such cases.

 

Anyhow, in your case both the DMG and the law are perfectly clear - loans for tuition fees only, paid directly to the student's insitution, are not to be counted as income when ESA entitlement is worked out.

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And here I thought the DWP was a signatory to the Treaty of Algeron, 2311, that prohibited human use of such technology.

 

Although they are (or will be) a signatory - the treaty is not (or will not be) retrospective - unlike some of the dodgy legislation changes introduced by this government

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Although they are (or will be) a signatory - the treaty is not (or will not be) retrospective - unlike some of the dodgy legislation changes introduced by this government

:lol:

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