ESA will be deducted or stopped because of UNI!

km1

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 

calcotti

km1 said:

Is this the standard practice? I am shocked. 

Yes. Students are expected to make use of student loans to the extent they are available (otherwise all students would claim benefits rather than take out loans).

poppy123456

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.

km1

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.

No, I’m not receiving housing benefit. I live with my mother but the ESA is essential for helping to pay bills. 

calcotti

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.

No, I’m not receiving housing benefit. I live with my mother but the ESA is essential for helping to pay bills. 

The ESA is essential because you haven't taken out a student loan.

poppy123456

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.

  but the ESA is essential for helping to pay bills. 

That's what the maintenance loan helps with. Any overpayment will need to be repaid back. There may also be a fine on top if you didn't report the changes when you started Uni.

km1

calcotti said:

km1 said:

Is this the standard practice? I am shocked. 

Yes. Students are expected to make use of student loans to the extent they are available (otherwise all students would claim benefits rather than take out loans).

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…

km1

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.

No, I’m not receiving housing benefit. I live with my mother but the ESA is essential for helping to pay bills. 

The ESA is essential because you haven't taken out a student loan.

I already have a tuition loan for 3 years. I would never have thought to apply for a maintenance loan and add nearly £10,000 of debt to that, plus interest. We will have to find another way… hopefully they will into deduct from the ESA and not remove it completely. One idea is to get a letter from my doctor and put that forward to the decision maker. It can’t do any harm… 

calcotti

km1 said:.But a student loan is obviously a debt. 

Yes it is (although you will never be required to pay it back unless you work and earn over the payment threshold). It is how the government expect you to support yourself while studying.

km1 said:… hopefully they will into deduct from the ESA and not remove it completely.  

That entirely depends on your ESA entitlement and the amount of loan available. The Decision Maker has to apply the rules.

poppy123456

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.

That's not going to help. If you were overpaid it will need to be repaid back.

forgoodnesssake

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. 

km1

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. 

Thanks for sharing that. A loan is a loan, and as you say, they can change the conditions of it at any time. What is also so ridiculous about the situation is that what are university students like your son and me trying to do — we are trying to get an education & better ourselves so we can be in a quaified position to get a job and be earning enough to pay a significant level of taxes in this country over our lifetime. 

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.

poppy123456

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.

km1

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.

As I’m sure you know, any benefits decision can be appealed. I spoke with a lady from the DWP a couple of days ago - she said I could appeal. The citizens advice office also said if can appeal. So if I need to, I will.

poppy123456

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.