ESA will be deducted or stopped because of UNI!

km1
Online Community Member Posts: 14 Connected
I started university in September 2020 and receive PIP and income-related ESA. I have mental disabilities. For the past three years, I have been receiving a tuition loan from Student Finance England for the tuition costs, but I had never applied for or received a maintenance loan.
A few weeks or so before Christmas, I was contacted by the benefits office about my university status. I had no idea I would’ve had to inform them about attending university and receiving a tuition loan. I’ve now sent them my various documents, and they are currently analysing them, but someone contacted me today from one of their offices today, and I spoke to her on the phone. She said my income-related ESA would either be deducted or stopped entirely because I am eligible to apply for maintenance loan (even though I have never applied for or received a maintenance loan), just the fact that I am eligible to apply will be sufficient enough reason for them to deduct or remove my ESA. I will finish university in May 2023.
Is this the standard practice? I am shocked. The ESA is vital for paying bills
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Are you claiming for help with any rent through housing benefit? If so are they are that you're a student? If not then you need to tell them but you may have an overpayment for that as well as ESA.
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poppy123456 said:Are you claiming for help with any rent through housing benefit? If so are they are that you're a student? If not then you need to tell them but you may have an overpayment for that as well as ESA.0
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km1 said:poppy123456 said:Are you claiming for help with any rent through housing benefit? If so are they are that you're a student? If not then you need to tell them but you may have an overpayment for that as well as ESA.0
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km1 said:poppy123456 said:Are you claiming for help with any rent through housing benefit? If so are they are that you're a student? If not then you need to tell them but you may have an overpayment for that as well as ESA.
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calcotti said:km1 said:Is this the standard practice? I am shocked.0
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calcotti said:km1 said:poppy123456 said:Are you claiming for help with any rent through housing benefit? If so are they are that you're a student? If not then you need to tell them but you may have an overpayment for that as well as ESA.0
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km1 said:.But a student loan is obviously a debt.km1 said:… hopefully they will into deduct from the ESA and not remove it completely.0
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km1 said:But a student loan is obviously a debt. They are basically saying that if you were on ESA and started university, your choice is to get into debt with a further £9000+ of maintenance loan or lose your ESA…Yes indeed. The majority of students have maintenance loans. My daughter graduated a few years ago and started full time work a couple of weeks later and has only paid a very small amount of that back twice. Unless you earn over a certain threshold, you won't pay anything back.km1 said:One idea is to get a letter from my doctor and put that forward to the decision maker.0
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Yes this is a huge trap that many people are not aware of. My son was in the same position...ESA reduced to something like 17p per week once he started Uni as the loan is considered income. Ridiculous but there it is. And even if you do not claim the maintenance loan, if you are eligible, then ESA treat you as if you have received the full amount of loan that you COULD have got.This was the bit I really struggled with though, since the assumption is that you would have got basically the maximum loan...but the loan is means tested on, in most cases, your parents/carers income, not your own. Whereas means tested benefits like ESA are based on only your own income. So there is a real logical gap here which I have yet to see a satisfactory explanation of!As has been stated above, you only start paying the loan back once you cross a certain salary threshold, which sounds fair enough. However the small print of student loan is quite clear that they can change any of the conditions at any time. So essentially students are signing up to a completely unknown future of debt, potentially at least.0
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forgoodnesssake said:Yes this is a huge trap that many people are not aware of. My son was in the same position...ESA reduced to something like 17p per week once he started Uni as the loan is considered income. Ridiculous but there it is. And even if you do not claim the maintenance loan, if you are eligible, then ESA treat you as if you have received the full amount of loan that you COULD have got.This was the bit I really struggled with though, since the assumption is that you would have got basically the maximum loan...but the loan is means tested on, in most cases, your parents/carers income, not your own. Whereas means tested benefits like ESA are based on only your own income. So there is a real logical gap here which I have yet to see a satisfactory explanation of!As has been stated above, you only start paying the loan back once you cross a certain salary threshold, which sounds fair enough. However the small print of student loan is quite clear that they can change any of the conditions at any time. So essentially students are signing up to a completely unknown future of debt, potentially at least.I would be better off right now if I stopped university completely, and stayed home, but I don’t want to do that. I actually want to improve and do better in my life, even with the mental health challenges that I have had. But instead of benefit policy trying to uplift me and similar people in my position, we are being in a sense punished. The benefit system really is a trap. I’m sure that many people in all kinds of situations could speak about how they would be better financially with their benefits if they didn’t work or to get an education but obviously they don’t want to do that.I have contacted the citizens advice bureau and they are writing up a case for me to put forth in case I need to appeal the upcoming decision. I may also contact my local MP who was very helpful on a benefits related matter some years ago.0
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km1 said:I have contacted the citizens advice bureau and they are writing up a case for me to put forth in case I need to appeal the upcoming decision. I may also contact my local MP who was very helpful on a benefits related matter some years ago.Appeal what? The student maintenance loan affects means tested benefits and is the law which can't be changed. Challenging the decision will be a waste of your time and theirs.You should have reported the changes when you started Uni, as it does say on all letters that all changes need to be reported.0
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poppy123456 said:km1 said:I have contacted the citizens advice bureau and they are writing up a case for me to put forth in case I need to appeal the upcoming decision. I may also contact my local MP who was very helpful on a benefits related matter some years ago.Appeal what? The student maintenance loan affects means tested benefits and is the law which can't be changed. Challenging the decision will be a waste of your time and theirs.You should have reported the changes when you started Uni, as it does say on all letters that all changes need to be reported.0
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I never said it couldn't be appealed, of course any decision can be appealed. First you need to request the MR.What i'm saying is the rules are the law, which can't be changed so appealing would be a waste of everyone's time. I'm very surprised that Citizens Advice didn't advise you this.0
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