My only income is student loan and bursary - is that considered income?

[Pepsi88]

Hi,

I have an ongoing case re an old debt of £3,200. I live in Scotland and the PRA Group had just met the deadline for the debt no longer being statue barred. They started a court case on 31st March, however I denied the debt and asked for proof. On 22nd of July they asked for a pause, and was granted. But now on the 1st of February they have provided proof of debt, ownership and letters sent out to me.

So it seems like I will have to pay up, unfortunately, but on reflection it is my debt and is ethical to do so.

But my problem is that my only income is my student loan and bursary, which totals to just under £800 per month. I have read online that student loan and bursaries are not considered income, so no matter what my expenses are, the court won’t be unfavourable towards any offer I make. Is that correct?

Thank you for your help.

[ostell]

5 years in Scotland ?

[Pepsi88]

Yes, on the evidence they provided I defaulted on August / September 2015, and they started court action in February 2020. So the debt was less than five years.

[Matty B]

I know the DWP as well as the help with health costs team in England class all student finance as income . This includes bursaries even when they are for course related costs. However £800 pcm is not high income and a court might accept a low monthly offer. I think you would need to do an income and expenditure for the court - these can make a powerful tool.