Student??

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  • #23222
    pdeans
    Participant

    We have a claimant who was on IB and then went back to university to do a post grad course. She received the first instalment of her bursary, but only lasted 6 weeks and then gave the course up. She is now being made to pay the bursary back.

    She has just notified us of all this, when we process the CoC, should we be putting the bursary on for the 6 week period even though she is going to be paying it back?

    #11527
    Anonymous
    Guest

    The DWP Guidance Manual states that where a student abandons or is dismissed from a course and is required to repay any [i:442a96736c]student loan[/i:442a96736c] payments, then those payments should not be taken into account as income. The Manual does not specifically state that this also applies to bursaries, as far as I can see, but I would be very surprised if the rule was different for bursaries.

    #11528
    Anonymous
    Guest

    I am a bit rusty on student finance, but if the “bursary” that you refer to is a “young student’s bursary” paid under the Students’ Allowances (Scotland) Regs 1999, then it counts as a loan for HB purposes and is therefore subject to the special rules in Reg 40(7) and (8) for dealing with left over student income when the student leaves the course in mid-year.

    In some ways this is to the claimant’s advantage and in others to the claimant’s disadvantage. The advantageous aspect of it is that you assume the claimant has already spent their entire books and travel allowance for the whole year out of the first instalment, and you also assume that they have been spending their full net weekly loan income including the £10 that would normally be disregarded.

    The bad news is that you take into account what is left for the rest of the academic quarter (i.e. up to 31 December), rather than removing the income from the assessment immediately.

    If the bursary is not covered by the definition of a loan, there are no special rules and the general treatment of money due to be repaid is that you stop counting it as income as soon as there is a firm demand for repayment (which seems to have happened already in this case).

    Finally, the effect of the change of circs is likely to be advantageous because you are compressing the whole books/travel disregard into one term whereas in your original student calculation it was spread over the year. So there is D&A Reg 8(3) to consider too.

    #11529
    pdeans
    Participant

    I’ve had a wee look and HBR33 suggests that we should be taking the payment into account using the calculation of

    [u:92d1e486c3]A-(BxC)[/u:92d1e486c3]
    D

    Whichi s fair enough when they get to keep the money, but I can’t see a mention of what to do when the ex-student is having to repay it all.

    #11530
    Kevin D
    Participant

    [b:159feda33e]HBR 40(7) & (8 ) [/b:159feda33e] as already cited above by Peter B.

    #11531
    Anonymous
    Guest

    Doesn’t the simple answer remain that if the student is being required to repay the money, then it is ignored as income?

    #11532
    Anonymous
    Guest

    I think you are right Andy – the special rules in Reg 40 only apply to loan income, presumably because the student has to pay it back one way or another anyhow. Whereas a grant is yours to keep unless someone asks for it back.

    The case that established this principle was Leeves and it was a student grant that was at stake in that case as I recall. So there is good authority for the general proposition that the gfrant ceases to be your income as soon as you face a demand for repayment.

    However, the definition of a loan does refer to a Scottish young student’s bursary, so if that is what pdeans’ student has been asked to pay back I think the specific rule in Reg 40 trumps the general Leeves principle.

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