DRO and student income

pjb1976 Forumite Posts: 1 Newbie
Hi, I am finding it near impossible to find out what is included and excluded regarding Student loans and grants when applying for a DRO/BANKRUPTCY. My award is made up of a mix of standard loans and grants which I know are classed as income, but also some extra grants due to disability. Are these disregarded as PIP/DLA would be when assessing income? Thanks, any advice appreciated. 


  • fatbelly
    fatbelly Forumite Posts: 19,170
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    It's not an easy subject is it?

    Thus is the guidance for DROs:

    Monies received from a student grant or loan is income and should be apportioned across the months it relates to.

    Maintenance loans are treated in the same way as student loans.

    Student loans made under the Teaching and Higher Education Act 1998 are excluded debts for DRO purposes. The amount of the loan must be scheduled in a DRO but it does not count towards the £20,000 limit.

    Even if a DRO is made the loan remains the responsibility of the debtor to repay within the terms of the agreement.

    Where an applicant is registered as disabled and in receipt of State Benefits for their care, supervision or mobility needs, it is acceptable to list the full State benefit amount as expense.  

    So on the face of it, student disability grants are income but there may be an argument for offsetting them if they were for something specific

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