2. Grants and loans

If you get a student loan

If you are eligible for a loan for maintenance, it counts as income when working out universal credit (UC). The maximum loan you could be entitled to is taken into account, as though there were no reduction for household income or another grant.1Regs 68 and 69 UC Regs

Any other grants you receive are disregarded, except for any amount for the maintenance of your partner and/or child(ren), and any specific amount for rent payments that are met by UC.2Reg 68(3) UC Regs A dependants’ grant or lone parents’ grant paid as well as your loan counts as income. A discretionary fund payment is ignored, provided it is not for the maintenance of your partner or child(ren), and not a specified amount for rent that is met by UC. Note: a one-off payment from discretionary funds counts as capital rather than income (see p00).

 

 

Taken into account	Ignored
Postgraduate loan for living costs	Postgraduate tuition fee loan
Undergraduate loan	Independent students’ bursary
Young students’ bursary	Tuition fees
Dependants’ grant	Disabled students’ allowance
Lone parents’ grant	Travel expenses
	Lone parents’ childcare grant and childcare fund payments

 

1     Regs 68 and 69 UC Regs »

2     Reg 68(3) UC Regs »

If you do not get a student loan

If you do not get a loan, but you receive a grant, the grant income is taken into account for UC (subject to the disregards below).1Reg 68(2) and (4) UC Regs A grant is an educational grant or award, and does not include education maintenance allowance payments.2Reg 68(7) UC Regs

Grant income is taken into account, excluding any payment for:3Reg 70 UC Regs

•tuition fees or exams;
•your disability;
•extra costs of residential study away from your usual place of study during term time;
•the costs of your normal home (if you live elsewhere during your course), unless these are included in your UC;
•the maintenance of someone not included in your UC claim;
•books, equipment, course travel costs or childcare costs.

If you get a grant but no loan and receive a discretionary fund payment, that is disregarded if it is paid for any of the above, and otherwise counts as income. Note: a one-off payment from discretionary funds counts as capital rather than income (see here).

 

 

Taken into account	Ignored
All students	Help with tuition fees
Undergraduate students
Care-experienced students’ bursary
Care-experienced accommodation grant*
Nursing and midwifery students
Nursing and midwifery bursary	Childcare allowance
Dependants’ allowance for adult and child	Disabled students’ allowance
Single parents’ allowance
Further education students
Bursary maintenance allowance	Education maintenance allowance
Dependants’ allowance	Additional support needs for learning allowance
Care-experienced bursary maintenance allowance	Study and travel expenses allowance
	Lone parents’ childcare grant and childcare fund payments

 

*Note that the care-experienced accommodation grant is normally paid as a lump sum, in which case it counts as capital rather than income (see here).

 

1     Reg 68(2) and (4) UC Regs »

2     Reg 68(7) UC Regs »

3     Reg 70 UC Regs »