Student Allowances entitlement is deducted
How Living Cost entitlement is affected by Student Allowance entitlement
Entitlement to Living Costs is reduced by deducting the Student Allowances entitlement (not including Accommodation Benefit).
This is calculated on a weekly basis and may result in a student receiving less than their nominated amount of Living Costs.
Student does not apply for Student Allowance
If a student does not apply, and therefore does not get a Student Allowance, they can get the maximum rate of Living Costs.
Subsequent entitlement to Student Allowance
If a student is subsequently assessed to have entitlement to a Student Allowance, their Living Costs entitlement for any overlapping period must be adjusted accordingly.
This means, that where a Student Allowance back-payment covers a period where they have received Living Costs, the amount of the back-payment for that period is used to repay that Student Loan debt.
A student is not entitled to be paid twice (Student Allowance and Living Costs) for the same period.
Legal authority to adjust Living Cost entitlement when Student Allowance entitlement is subsequently established
The Education and Training Act 2020 gives authority for the recovery of Student Loan debt from a Student Allowance payment, when Living Costs have already been paid for that period.
Legislation
- Recovery of debts Schedule 9, clause 6 Education and Training Act 2020
