Treatment of student loans
136.—[F1(1) A student loan shall be treated as income.]
(2) In calculating the weekly amount of the loan to be taken into account as income
(a)except where sub-paragraph (b) applies, the loan shall be apportioned equally between the weeks in the academic year in respect of which the loan is payable;
(b)in the case of a loan which is payable in respect of the final academic year of the course or if the course is of only one academic year’s duration, in respect of that year, the loan shall be apportioned equally between the weeks in the period beginning with the start of the final academic year or, as the case may be, the single academic year and ending with the last day of the course, and from the weekly amount so apportioned there shall be disregarded £10.
[F2(3) A student shall be treated as possessing a student loan in respect of an academic year where—
(a)a student loan has been made to him in respect of that year; or
(b)he could acquire such a loan in respect of that year by taking reasonable steps to do so.
(4) Where a student is treated as possessing a student loan under paragraph (3), the amount of the student loan to be taken into account as income shall be, subject to paragraph (5)—
(a)in the case of a student to whom a student loan is made in respect of an academic year, a sum equal to the maximum student loan he is able to acquire in respect of that year by taking reasonable steps to do so and either—
(i)in the case of a student other than one to whom head (ii) refers, any contribution whether or not it has been paid to him; or
(ii)in the case of a student who satisfies the additional conditions for a disability premium specified in paragraph 14 of Schedule 1 (applicable amounts), any contribution which has actually been paid to him;
(b)n the case of a student to whom a student loan is not made in respect of an academic year, the maximum student loan that would be made to the student if—
(i)he took all reasonable steps to obtain the maximum student loan he is able to acquire in respect of that year; and
(ii)no deduction in that loan was made by virtue of the application of a means test.
(5) There shall be deducted from the amount of income taken into account under paragraph (4)—
(a)the sum of £250 in respect of travel costs; and
(b)where no amount has been disregarded under regulation 131(2)(f), the sum of £303 towards the cost of books and equipment,
whether or not any such costs are incurred.]
Textual Amendments
F1Reg. 136(1) substituted (with effect in accordance with reg. 1(1)(b) of the amending S.I.) by The Social Security Amendment (Students) Regulations 1999 (S.I. 1999/1935), regs. 1(1)(b), 2(5)(a)
F2Reg. 136(3)-(5) substituted for reg. 136(3) (with effect in accordance with reg. 1(1)(b) of the amending S.I.) by The Social Security Amendment (Students) Regulations 1999 (S.I. 1999/1935), regs. 1(1)(b), 2(5)(b)