Student finance is loan or income?

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susan197
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by susan197 » Fri Jan 05, 2018 11:38 am
Does student finance count as a loan or income when in an iva?
Thank you.
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Foggy
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by Foggy » Fri Jan 05, 2018 11:51 am
A student loan is ... well .. a loan, but generally allowed in an IVA as the repayment is not due until you are earning a certain amount .... by which time you will be out of the IVA.

A student grant / bursary is income, but should be offset, at least in part, by the associated expenses ... books, materials, etc.

At the end of the day it will depend on how your own IP sees it.
GottaGetThruThis
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by GottaGetThruThis » Fri Jan 05, 2018 1:49 pm
Foggy wrote:
A student loan is ... well .. a loan, but generally allowed in an IVA as the repayment is not due until you are earning a certain amount .... by which time you will be out of the IVA.

A student grant / bursary is income, but should be offset, at least in part, by the associated expenses ... books, materials, etc.

At the end of the day it will depend on how your own IP sees it.

My student loan payments are deducted by my employer and shown on my payslip, so would be difficult to include within an IVA.

They certainly are not permitted within bankruptcy: The Education (Student Loans) (Repayment) Regulations 2009, section 80.2.b.
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kallis3
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by kallis3 » Fri Jan 05, 2018 3:10 pm
You cannot include student loans in an IVA - they won't be paid back until in employment and then only after your income reaches a certain level.
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Foggy
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by Foggy » Fri Jan 05, 2018 5:56 pm
GottaGetThruThis wrote:
Foggy wrote:
A student loan is ... well .. a loan, but generally allowed in an IVA as the repayment is not due until you are earning a certain amount .... by which time you will be out of the IVA.

A student grant / bursary is income, but should be offset, at least in part, by the associated expenses ... books, materials, etc.

At the end of the day it will depend on how your own IP sees it.

My student loan payments are deducted by my employer and shown on my payslip, so would be difficult to include within an IVA.

They certainly are not permitted within bankruptcy: The Education (Student Loans) (Repayment) Regulations 2009, section 80.2.b.



I am not referring to payments on existing (repayable) student loans, but on the fact that you are generaly allowed to take them out during an IVA.

Fortunately Bankruptcy is not the same legal animal as an IVA.
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