Benefits for Students in Scotland Handbook 2020/21Part 3: Treatment of incomeChapter 17: How income affects means-tested benefits 2. Grants and loans
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2. Grants and loans
Grants
A grant is defined as an educational grant or award, bursary, scholarship or allowance, and does not include education maintenance allowance or discretionary fund payments.1IS Reg 61(1) IS Regs
JSA Reg 130 JSA Regs
ESA Reg 131(1) ESA Regs
HB Reg 53(1) HB Regs
All Definition of ‘grant’ In general, grants intended for living costs are taken into account and grants for other costs are disregarded. For the way that discretionary funds are treated, see here.
If you are not eligible for a student loan, deduct from your grant:
    •£390 for books and equipment;
    •£303 for travel.
An assessed contribution from a partner or parent counts as income, whether or not you receive it. However, for income support (IS) and income-related employment and support allowance (ESA), if you are a disabled student, only include contributions that are actually paid.2IS Reg 61(1) IS Regs
ESA Reg 131(1) ESA Regs
HB Reg 53(1) HB Regs
Ignore any grants for:3IS Reg 62(2) IS Regs
JSA Reg 131(2) JSA Regs
ESA Reg 132(2) ESA Regs
HB Reg 59(2) HB Regs
    •tuition fees or exam fees;
    •course-related disability costs;
    •residential study away from your normal home;
    •books and equipment, or travel;
    •for IS, income-based jobseeker’s allowance (JSA) and income-related ESA only, maintenance of a child dependant;
    •childcare costs.
 
1     IS Reg 61(1) IS Regs
JSA Reg 130 JSA Regs
ESA Reg 131(1) ESA Regs
HB Reg 53(1) HB Regs
All Definition of ‘grant’  »
2     IS Reg 61(1) IS Regs
ESA Reg 131(1) ESA Regs
HB Reg 53(1) HB Regs »
3     IS Reg 62(2) IS Regs
JSA Reg 131(2) JSA Regs
ESA Reg 132(2) ESA Regs
HB Reg 59(2) HB Regs »
Undergraduate grants
The following higher education (HE) grants are disregarded:
    •lone parents’ childcare grant;1IS Reg 62(2)(j) IS Regs
    ESA Reg 132(2)(i) ESA Regs
    HB Reg 59(2)(h) HB Regs
    •disabled students’ allowance;2IS Reg 62(2)(c) IS Regs
    ESA Reg 132(2)(b) ESA Regs
    HB Reg 59(2)(b) HB Regs
    •lone parents’ grant for income-related ESA, and for IS and income-based JSA except for some existing claimants who do not get child tax credit (CTC) (see below);
    •travel expenses;3IS Reg 62(2)(h) IS Regs
    ESA Reg 132(2)(g) ESA Regs
    HB Reg 59(2)(g) HB Regs
    •tuition fees.4IS Reg 62(2)(a) IS Regs
    ESA Reg 132(2)(a) ESA Regs
    HB Reg 59(2)(a) HB Regs
The following HE grants are taken into account:
    •young students’ bursary;
    •independent students’ bursary;
    •care-experienced students’ bursary;
    •care-experienced accommodation grant (note that if it is a one-off payment it should count as capital);
    •dependants’ grant;
    •lone parents’ grant. This is always taken into account for housing benefit (HB), but disregarded for IS, income-based JSA and income-related ESA.5IS Reg 62(2)(i) IS Regs
    JSA Reg 131(2)(h) JSA Regs
    ESA Reg 132(2)(h) ESA Regs
    Note: the rules do not specifically disregard the lone parents’ grant but rather disregard ‘any payment… intended for the maintenance of a child dependant’. Since the SAAS pays this grant only to students with children for their maintenance, it should be disregarded under this rule for IS, income-based JSA and income-related ESA.
 
1     IS Reg 62(2)(j) IS Regs
ESA Reg 132(2)(i) ESA Regs
HB Reg 59(2)(h) HB Regs »
2     IS Reg 62(2)(c) IS Regs
ESA Reg 132(2)(b) ESA Regs
HB Reg 59(2)(b) HB Regs »
3     IS Reg 62(2)(h) IS Regs
ESA Reg 132(2)(g) ESA Regs
HB Reg 59(2)(g) HB Regs »
4     IS Reg 62(2)(a) IS Regs
ESA Reg 132(2)(a) ESA Regs
HB Reg 59(2)(a) HB Regs »
5     IS Reg 62(2)(i) IS Regs
JSA Reg 131(2)(h) JSA Regs
ESA Reg 132(2)(h) ESA Regs
Note: the rules do not specifically disregard the lone parents’ grant but rather disregard ‘any payment… intended for the maintenance of a child dependant’. Since the SAAS pays this grant only to students with children for their maintenance, it should be disregarded under this rule for IS, income-based JSA and income-related ESA. »
Nursing and midwifery students’ grants
The following grants are disregarded:
    •childcare allowance;
    •disabled students’ allowance;
    •dependants’ allowance for a child, and single parents’ allowance – for IS, income-based JSA and income-related ESA.
The following are taken into account:
    •nursing and midwifery bursary;
    •single parents’ allowance – for HB;
    •dependants’ allowance for an adult;
    •dependants’ allowance for a child – for HB.
Postgraduate grants
The following are taken into account:
    •maintenance grant;
    •dependants’ grant.
Grants in further education
The following further education (FE) grants are disregarded:
    •education maintenance allowance;1IS Sch 9 para 11 IS Regs
    JSA Sch 7 para 12 JSA Regs
    ESA Sch 8 para 13 ESA Regs
    HB Sch 5 para 11 HB Regs
    •additional support needs for learning allowance for disability costs;2IS Reg 62(2)(c) IS Regs
    JSA Reg 131(2)(b) JSA Regs
    ESA Reg 132(2)(b) ESA Regs
    HB Reg 59(2)(b) HB Regs
    •study expenses allowance if paid for books and equipment;3IS Reg 62(2)(g) IS Regs
    ESA Reg 132(2)(f) ESA Regs
    HB Reg 59(2)(f) HB Regs
    •lone parents’ childcare grant;4IS Reg 62(2)(j) IS Regs
    ESA Reg 132(2)(i) ESA Regs
    HB Reg 59(2)(h) HB Regs
    •travel expenses allowance.5IS Reg 62(2)(h) IS Regs
    JSA Reg 131(2)(g) JSA Regs
    ESA Reg 132(2)(g) ESA Regs
    HB Reg 59(2)(g) HB Regs
The following FE grants are taken into account:
    •bursary maintenance allowance;
    •care-experienced bursary maintenance allowance;
    •dependants’ allowance.
FE students who are lone parents and other students eligible for IS (see here) or income-related ESA can stay on IS or income-related ESA instead of applying for a discretionary bursary maintenance allowance. This is because the rules can only treat you as having access to such income if it ‘would become available to [you] upon application’.6IS Reg 42(2) IS Regs
ESA Reg 106(2) ESA Regs You should not be treated as having access to a discretionary bursary if you do not have one because, by its nature, there is no guarantee you would get it if you applied.
Grants and loans checklist
Student support
Treatment
Undergraduate income
Student loan (including young students’ bursary)
Disregard:
– £390 a year for books and equipment;
 
– £303 a year for travel;
 
– £10 a week;
 
– amount of student’s contribution to loan;
 
– partner’s contribution.
Independent students’ bursary
Taken into account in full.
Care-experienced students’ bursary
Disregard:
– £390 a year for books and equipment;
 
– £303 a year for travel.
 
Care-experienced accommodation grant
Taken into account in full (as capital if paid in a lump sum).
Dependants’ grant
Taken into account in full.
Disabled students’ allowance
Disregarded.
Lone parents’ grant
Taken into account in full for HB.
 
Disregarded for IS and income-based JSA if you get CTC.
Disregarded for income-related ESA.
Lone parents’ childcare grant
Disregarded.
Travel expenses
Disregarded.
Discretionary funds
Taken into account if paid for basic living costs (as capital if not regular payments) less a weekly disregard.
Disregarded if paid for other items.
Childcare fund
Disregarded.
Part-time fee grant
Disregarded.
Nursing and midwifery student income
Nursing and midwifery bursary
Disregard:
– £390 a year for books and equipment;
 
– £303 a year for travel.
Dependants’ allowance for adult
Taken into account in full.
Dependants’ allowance for child
Taken into account in full for HB.
 
Disregarded for IS and income-based JSA if you get CTC.
Disregarded for income-related ESA.
Single parents’ allowance
Taken into account in full for HB.
 
Disregarded for IS and income-based JSA if you get CTC.
Disregarded for income-related ESA.
Childcare allowance
Disregarded.
Disabled students’ allowance
Disregarded.
Postgraduate income
Tuition fees (including tuition fee loan) and exam fees
Disregarded.
Postgraduate living cost loan
Disregard:
– £390 a year for books and equipment;
 
– £303 a year for travel.
Residential study
Disregarded.
Books, equipment and travel
Disregarded.
Maintenance grant
Disregard:
 
– £390 a year for books and equipment;
 
– £303 a year for travel.
Further education income
Bursary maintenance allowance
Disregard:
– £390 a year for books and equipment;
 
– £303 a year for travel.
Care-experienced bursary maintence allowance
Disregard:
– £390 a year for books and equipment;
– £303 a year for travel.
Dependants’ allowance
Taken into account in full.
Education maintenance allowance
Disregarded.
Additional support needs for learning allowance
Disregarded for disability costs.
Study expenses allowance
Disregarded for books and equipment.
Lone parents’ childcare grant
Disregarded.
Travel expenses allowance
Disregarded.
Childcare fund
Disregarded.
FE discretionary fund
Taken into account less weekly disregard if paid for basic living costs.
Disregarded if paid for other items.
 
 
 
1     IS Sch 9 para 11 IS Regs
JSA Sch 7 para 12 JSA Regs
ESA Sch 8 para 13 ESA Regs
HB Sch 5 para 11 HB Regs »
2     IS Reg 62(2)(c) IS Regs
JSA Reg 131(2)(b) JSA Regs
ESA Reg 132(2)(b) ESA Regs
HB Reg 59(2)(b) HB Regs »
3     IS Reg 62(2)(g) IS Regs
ESA Reg 132(2)(f) ESA Regs
HB Reg 59(2)(f) HB Regs »
4     IS Reg 62(2)(j) IS Regs
ESA Reg 132(2)(i) ESA Regs
HB Reg 59(2)(h) HB Regs »
5     IS Reg 62(2)(h) IS Regs
JSA Reg 131(2)(g) JSA Regs
ESA Reg 132(2)(g) ESA Regs
HB Reg 59(2)(g) HB Regs »
6     IS Reg 42(2) IS Regs
ESA Reg 106(2) ESA Regs »
Student loan
You should include in the student loan:
    •the maximum loan for which you are eligible, including the young students’ bursary.1IS Reg 61(1) IS Regs
    ESA Reg 131(1) ESA Regs
    HB Reg 53(1) HB Regs
    All Definition of ‘student loan’     This is taken into account as your income whether or not you apply for it.2IS Reg 66A(3) and (4) IS Regs
    ESA Reg 137(4) and (5) ESA Regs
    HB Reg 64(3) and (4) HB Regs     This means that students cannot choose to keep maximum IS or income-related ESA instead of applying for a loan; you are treated as though you had taken out the full loan and your benefit reduced accordingly;
    •the assessed contribution from a parent or partner, whether or not you receive it. However, for IS and income-related ESA, if you are a disabled student, only contributions that are actually paid are included.3IS Reg 66A(4)(a) IS Regs
    ESA Reg 137(5)(a) ESA Regs
    HB Reg 64(4) HB Regs
You should deduct from the annual student loan:
    •£390 for books and equipment;
    •£303 for travel.
There is a further disregard of £10 a week that applies once the student loan has been divided over the number of weeks in the period of study to arrive at a weekly amount.4IS Reg 66A(2) IS Regs
ESA Reg 137(3) ESA Regs
HB Reg 64(2) HB Regs
 
1     IS Reg 61(1) IS Regs
ESA Reg 131(1) ESA Regs
HB Reg 53(1) HB Regs
All Definition of ‘student loan’ »
2     IS Reg 66A(3) and (4) IS Regs
ESA Reg 137(4) and (5) ESA Regs
HB Reg 64(3) and (4) HB Regs »
3     IS Reg 66A(4)(a) IS Regs
ESA Reg 137(5)(a) ESA Regs
HB Reg 64(4) HB Regs »
4     IS Reg 66A(2) IS Regs
ESA Reg 137(3) ESA Regs
HB Reg 64(2) HB Regs »