Student loans and grants as income

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Prosecco83
Prosecco83 Posts: 3 Newbie
in IVA & DRO
Hi, I would really appreciate any advice please.

I am trying to ascertain if student loans and grants can be used as income in relation to an IVA. I have had conflicting advice from various places.

Many thanks.

Comments

  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
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    Hi

    It’s technically possible and will most likely be down to each insolvency practitioner’s policy. It really comes down to whether enough money is available each month to make a realistic proposal, and whether they can be afforded for the full duration of the IVA.

    If you’re in this situation yourself I suggest taking some independent free advice on whether it’s actually a good idea for you to commit to an IVA using student income. I imagine in a lot of cases it wouldn’t be.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • Prosecco83
    Prosecco83 Posts: 3 Newbie
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    Thank you for your reply.

    I have been in an IVA since March 2014 and at the time both my partner and I were in full or part time work. In September 2014 my partner went to University full time.and in September 2015 I went to University full time. From September 2014 we have been living on Student loans, grants, child tax credits and child benefit. This summer my partner has begun temporary work for the summer break.

    Our IVA is trying to up our payments from £25 a week to £180 a week due to my partner's earnings from his temporary employment, our student loans and student grants.

    I am just trying to ascertain if both student loans and grants have to be considered as an income?

    Thank you in advance.
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
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    They are forms of income but your current outgoings also need to be checked for before the IVA instalments are decided. Going from £25pw to £180pw is a huge jump so have they made sure you realistically have enough to live on?

    Although an IVA is for an individual they can ask about your partner’s income to make sure you’re both paying your fair share of household bills and living costs. They shouldn’t just increase the instalments based purely on the extra income your partner now has though, unless that’s a specific term in your IVA agreement.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • Prosecco83
    Prosecco83 Posts: 3 Newbie
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    Thank you very much for your reply. That is very helpful information.
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