Student Finance And Universal Credit: Are They Compatible?

Universal Credit is a monthly payment to help people on low incomes or out of work with living costs. While full-time students are usually ineligible for Universal Credit, there are exceptions. Students may be able to claim Universal Credit if they are single parents, over the qualifying age for Pension Credit, or have received a Migration Notice. Students aged 21 or under doing non-advanced qualifications may also be eligible, as may those with certain disabilities. Student income, including loans and grants, can affect how much Universal Credit is awarded.

Full-time students and Universal Credit eligibility

Full-time students are usually ineligible for Universal Credit. However, there are some exceptions.

If you are a full-time student, you may be able to claim Universal Credit if:

• You are aged 21 or under, in full-time non-advanced education, and do not have parental support.
• You are responsible for a child.
• You live with a partner who can claim Universal Credit.
• You have reached the qualifying age for Pension Credit and live with a partner who is under that age.
• You have received a Migration Notice telling you to move to Universal Credit.
• You are disabled, were assessed as having limited capability for work before starting your course, and are getting Personal Independence Payment, Disability Living Allowance, Child Disability Payment, Attendance Allowance, or Armed Forces Independence Payment.

Additional criteria:

• If you are studying in full-time non-advanced education, you do not get a student loan or maintenance grant, and you are available for work. This only applies if your course is more than 12 hours a week and you are over the age of 19.
• If you are on a full-time course of non-advanced education or training that started before you turned 21, and you turn 21 while still on the course. In this case, you can continue to receive Universal Credit until the end of the academic year in which you turn 21 or the end of the course, whichever comes first.

Calculating Universal Credit:

The amount of Universal Credit received is calculated based on your income, including income from student loans and grants.

Example calculation:

• Work out your total student income and take out disregarded grants.
• Average out your student loan for maintenance across the academic year, considering how many months this will cover.
• Divide the amount from Step 1 by the amount from Step 2.
• Take out £110 from the amount calculated in Step 3 to find out how much will be deducted for your student income when calculating your Universal Credit.

Student income and Universal Credit

Universal Credit is a monthly payment to help with living costs for people on low incomes or out of work. Full-time students are usually ineligible for Universal Credit. However, certain full-time students are entitled to claim it.

Eligibility

You can claim Universal Credit as a full-time student if any of the following apply:

• You are part of a couple and your partner is eligible for Universal Credit.
• You are part of a couple responsible for at least one child, and one or both of you is a student.
• You are single and responsible for a child.
• You are over the qualifying age for Pension Credit, and your partner is under that age.
• You have received a Migration Notice telling you to move to Universal Credit and were participating in a course of education before claiming.
• You are already in full-time education and have moved from Employment and Support Allowance to Universal Credit.
• You are disabled, have been assessed as having Limited Capability for Work (LCW) or Limited Capability for Work and Work-Related Activity (LWRA), and receive:
• Disability Living Allowance or Personal Independence Payment
• Attendance Allowance
• Armed Forces Independence Payment
• If you are studying in full-time non-advanced education, do not get a student loan or maintenance grant, and are available for work. If the course is more than 12 hours a week, this only applies from 1 September following your 19th birthday because your parents can claim benefits for you before that date.
• You are 21 or under, in full-time non-advanced education (e.g. studying for A Levels or a BTEC National Diploma), and you don't have parental support (e.g. you don't have parents and aren't under local authority care).
• You are on a full-time course of non-advanced education or training that started before you turned 21, and you turn 21 while still on the course.

Calculating Universal Credit

Your student income, such as loans and grants, can affect how much Universal Credit you get. Loans for maintenance (living costs and rent) are regarded as income and are taken into account when calculating your Universal Credit. Loans for tuition fees and other study costs are excluded. The maximum student maintenance loan you are eligible for will be taken into account, even if you decide not to take the loan.

Universal Credit is usually paid once a month and is based on your circumstances during that month. This is called your 'assessment period'. An amount for any maintenance you get will be taken off your Universal Credit for each assessment period that you attend the course.

The amount taken off is calculated by dividing the student finance you get (or are eligible for) by the number of assessment periods in your course year. For every £1 you're entitled to get from a maintenance loan, your Universal Credit will be reduced by £1. For each assessment period, when working out your income, ignore the first £110.

No student income will be taken off your Universal Credit if:

• The assessment period covers the first day of the summer holidays.
• You're on summer holiday for the whole of a subsequent assessment period.
• Your course ends during the assessment period.

Postgraduate Income and Universal Credit

If you are a full-time postgraduate student, 30% of your Master's or Doctoral Loan will be taken into account as student income when calculating your Universal Credit.

Postgraduate student income and Universal Credit

Universal Credit is a monthly payment to help with living costs for people on low incomes or out of work. You cannot usually get Universal Credit if you are studying full-time, but there are some exceptions. Postgraduate students may be eligible for Universal Credit if they meet any of the following criteria:

• They are responsible for a child
• They live with a partner who is eligible for Universal Credit
• They have reached the qualifying age for Pension Credit and live with a partner who is under that age
• They have received a Migration Notice telling them to move to Universal Credit
• They are disabled and were assessed as having limited capability for work before starting their course, and are receiving Personal Independence Payment, Disability Living Allowance, Child Disability Payment, Attendance Allowance, or Armed Forces Independence Payment

Postgraduate students may also be able to get Universal Credit if they are studying full-time non-advanced education, do not receive a student loan or maintenance grant, and are available for work. This only applies if the course is more than 12 hours a week and the student is over the age of 19, as parents can claim benefits for their children before that date.

Postgraduate student income, such as loans and grants, can affect how much Universal Credit a student receives. Loans for maintenance (living costs and rent) are considered income and are taken into account when calculating Universal Credit. Loans for tuition fees and other study costs are excluded. The maximum student maintenance loan a student is eligible for will be considered when determining Universal Credit, even if the student did not apply for, accept, or take the full amount of the loan.

When calculating Universal Credit for postgraduate students, 30% of the postgraduate or postdoctoral loan is taken into account as student income. The rest is ignored. This is because it is assumed that the student will need to pay course fees from their loan.

To calculate the deduction from Universal Credit due to postgraduate student income, the following steps can be followed:

• Calculate 30% of the postgraduate loan
• Average out the postgraduate loan across the academic year by dividing it by the number of months it covers
• Divide the amount from step 1 by the amount from step 2
• Deduct £110 from the amount in step 3 to find out how much will be deducted from Universal Credit due to student income

It is important to note that no student income will be deducted from Universal Credit if the assessment period covers the first day of the summer holidays, if the student is on summer holiday for the entire assessment period, or if the course ends during the assessment period.

Student grants and Universal Credit

Universal Credit is a monthly payment to help with living costs for people on low incomes or out of work. Usually, full-time students are not eligible for Universal Credit. However, there are some exceptions.

Eligibility for Universal Credit as a Full-Time Student

If you are a full-time student, you may be able to claim Universal Credit if any of the following apply:

• You are part of a couple, and your partner is eligible for Universal Credit.
• You are part of a couple responsible for a child, and one or both of you are students.
• You are single and responsible for a child.
• You have reached the qualifying age for Pension Credit and live with a partner who is under that age.
• You have received a Migration Notice telling you to move to Universal Credit.
• You are disabled and were assessed as having limited capability for work before starting your course, and you are getting Personal Independence Payment, Disability Living Allowance, Child Disability Payment, Attendance Allowance, or Armed Forces Independence Payment.
• You are studying in full-time non-advanced education, do not get a student loan or maintenance grant, and are available for work. This only applies if your course is more than 12 hours a week and started after your 19th birthday, as parents can claim benefits for you before that date.
• You are 21 or under, in full-time non-advanced education, and do not have parental support. This includes if you have left care provided by the local council.
• You are on a full-time course of non-advanced education or training that started before you turned 21, and you continue to be on the course after your 21st birthday. You can receive Universal Credit until the end of the academic year in which you turn 21 or the end of the course, if it ends sooner.

How Student Grants Affect Universal Credit Payments

If you are eligible for Universal Credit as a student, your student grant or loan may be counted as income and reduce your Universal Credit payments during the academic year. This applies to any student income you are eligible for, whether or not you choose to apply for or accept it.

The following types of student income will be regarded as income and affect your Universal Credit payments:

• Maintenance loans, excluding any Special Support Element.
• Any grant or bursary intended for the maintenance of someone else on your claim (Dependants' Grant).
• Any grant or bursary specifically intended for housing costs that Universal Credit also provides a housing element for.

The following types of student income will not be regarded as income and will not affect your Universal Credit payments:

• Special Support Grants or Loans, which provide help for costs like books, equipment, and travel.
• Any grant or bursary intended for tuition or examination fees, disability, maintaining a home other than your usual residence during the course, books and equipment, travel expenses incurred for course attendance, meeting the needs of another person who is not a joint claimant or child dependent, or additional expenses for residential study away from your usual place of study.

To calculate your Universal Credit payment, you can use the following steps:

• Work out your total student income and take out disregarded grants.
• Average out your student loan for maintenance across the academic year, and work out how many months this will cover.
• Divide the amount from Step 1 by the amount from Step 2.
• Take out £110 from the amount calculated in Step 3 to find out how much will be deducted for your student income when calculating your Universal Credit.

Postgraduate Student Income and Universal Credit

If you are a postgraduate student, 30% of your postgraduate or postdoctoral loan will be taken into account as student income when calculating your Universal Credit. If you do not apply for the maximum postgraduate loan you are entitled to, it will usually be treated as if you received the loan, and your Universal Credit will be calculated based on that amount.

Student finance and Universal Credit calculation

Universal Credit is a monthly payment to help with living costs for people on low incomes or out of work. It is usually not available to full-time students, but there are exceptions.

Eligibility for Universal Credit as a student

You may be able to get Universal Credit as a student if any of the following apply:

• You are part of a couple and your partner is eligible for Universal Credit.
• You are part of a couple responsible for at least one child, and one or both of you are students.
• You are single and responsible for a child.
• You are over the qualifying age for Pension Credit and live with a partner who is under that age.
• You have received a Migration Notice telling you to move to Universal Credit and were participating in a course of education before claiming Universal Credit.
• You are already in full-time education and have moved from Employment and Support Allowance to Universal Credit.
• You are disabled, have been assessed as having Limited Capability for Work (or Limited Capability for Work and Work-Related Activity), and receive Personal Independence Payment, Disability Living Allowance, Attendance Allowance, or Armed Forces Independence Payment.
• You are under 21, in full-time non-advanced education, and do not have parental support.
• You are in full-time non-advanced education, do not get a student loan or maintenance grant, and are available for work. This only applies if the course is more than 12 hours a week from 1 September following your 19th birthday, as parents can claim benefits for you before that date.
• You are on a full-time course of non-advanced education or training that started before you turned 21, and you turn 21 while still on the course. You can continue to receive Universal Credit until the end of the academic year in which you turn 21 or the end of the course, if it ends before you turn 21.

Student income and Universal Credit calculation

Your student income, including loans and grants, can affect how much Universal Credit you get. Loans for maintenance (living costs and rent) are regarded as income and are taken into account when calculating Universal Credit. Loans for tuition fees and other study costs are excluded.

The maximum student maintenance loan you are eligible for will be taken into account when working out your Universal Credit, even if you have not applied for, accepted, or taken the full amount of the loan. If you receive a reduced loan because someone contributes to your living costs or because you receive a grant, this will also be taken into account.

For every £1 you are entitled to get from a maintenance loan, your Universal Credit will be reduced by £1. For each assessment period, the first £110 of income is ignored.

No student income will be taken off your Universal Credit if:

• The assessment period covers the first day of the summer holidays.
• You are on summer holiday for the whole of a subsequent assessment period.
• Your course ends during the assessment period.

Postgraduate Master's and Doctoral Loans are paid in three instalments over each year of the course and are a contribution to both living costs and tuition fees. When working out your Universal Credit, 30% of the loan is taken into account as student income, and the rest is ignored.

To calculate your Universal Credit payment, you can follow these steps:

• Work out your total student income and take out disregarded grants.
• Average out your student loan for maintenance across the academic year and work out how many months this will cover.
• Divide the amount from Step 1 by the amount from Step 2.
• Take out £110 from the amount in Step 3 to find out how much will be deducted for your student income when calculating your Universal Credit.

Frequently asked questions