UC & student income


I have a client that is in the second year of studying a Level 5 qualification. They are also working and not entitled to HB any longer so they’re considering moving away from TC onto UC if it’s beneficial to do so.
The only student related “income” they receive is an Advanced Learner Loan of almost £3000 that was fully paid directly to the college in 2020 and covers 2 full study years. They have been repaying the amount and the balance left is a little over £1000.

Before advising, I wanted to check whether this would be seen as an income by UC. I can’t find anything that mentions this type of loan specifically, but based on the below it looks like it wouldn’t be included?
They do not qualify for any other loans, grants or bursaries.

Calculation of student income – grants
70.  Where, in accordance with regulation 68(4), a person’s student income is to be based on the amount of a grant, the amount to be taken into account is the whole of the grant excluding any payment—

(a)intended to meet tuition fees or examination fees;

(b)in respect of the person’s disability;

(c)intended to meet additional expenditure connected with term time residential study away from the person’s educational establishment;

(d)intended to meet the cost of the person maintaining a home at a place other than that at which they reside during their course, except where an award of universal credit includes an amount for the housing costs element in respect of those costs;

(e)intended for the maintenance of another person, but only if an award of universal credit does not include any amount in respect of that person;

(f)intended to meet the cost of books and equipment;

(g)intended to meet travel expenses incurred as a result of the person’s attendance on the course; or

(h)intended to meet childcare costs.


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