STUDENT LOANS

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C
Cornishman
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I have a tenant (T) who was receiving LHA. The T. is studying at a local college to obtain a degree which will eventually enable the T. to obtain employment.

The T. has been receiving a Student Loan of 9,000 per year, which has to be repaid when the T. starts work. But the Council have discontinued the LHA payments as they say the T. earnings exceed the maximum level to qualify for LHA.

The issue is the payment of 9,000 each year is a LOAN which has to be repaid and is not INCOME in the accepted meaning of the word.

Is the Council correct in treating the loan as income for the purposes of assessing LHA?

02/04/2010 00:00

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