In the noble Quran, Allah SWT has explicitly mentioned 8 categories of people who are eligible to receive Zakat.

The Sadaqāt (prescribed alms) are (meant) only to be given to the poor, the needy, to those employed to collect them, to those whose hearts are to be won, in the cause of the slaves and those encumbered with debt, in the way of Allah and to a wayfarer. This is an obligation prescribed by Allah. Allah is All-Knowing, Wise. [Taubah Verse 60]

— Mufti Taqi Usmani

Our focus will be on category number 7, Those in the path of Allah SWT. According to the Hanafi Madhab, who are they? Does it include all of those who do good in the path of Allah SWT like students? If it includes all those in the path of Allah SWT then is poverty a condition?

The fuqaha have discussed in great lengths on who is included in the 7th category “in the way of Allah”. The meaning generally understood by the majority to be those who go out to fight in the cause of Allah SWT.

Later Hanafi scholars like Imam Kasani RA have elaborated on the inclusion of all people who carry out acts of good which are done for the sake of Allah SWT. However, based on the condition of hajat (need) and poverty. Thereby excluding the one who is wealthy..

Abu Saeed Khudri RA narrates from the Prophet SAW “Charity is not permissible for a rich man except in the way of Allah SWT, or for the wayfarer or a man who has a poor neighbour who you give alms to then you should give him it (zakat)”.

What is the shar’i definition of a poor person?
The shariah has defined a poor person into two categories:
1. Faqeer (poor person) Who owns some sort of wealth however it does not reach the amount of nisab or owns the amount of nisab but it is not productive wealth as it is being used for his needs. Productive wealth is that wealth which has the potential to grow and increase. Or the person owns money which reaches the amount of nisab, however he needs this money for his hajat asliyah (his necessary needs).

2. Miskeen – One who owns nothing .The fuqaha have discussed in great lengths on who is included in the 7th category “in the way of Allah”. The meaning generally understood by the majority to be those who go out to fight in the cause of Allah SWT.

One of the objectives of zakah as has been mentioned in the hadith “take alms from the rich and give it to the poor”.

The most correct opinion according to the Hanafi madhab is that a student may only be assisted with zakah money based on the condition that they are considered legally poor. The objective of Zakat is to take from the rich and give to the poor. If the rich student were to be given the zakat then the objective of zakat will be nullified.

Therefore if a student is considered legally poor, owning less than the nisab of zakat or nothing or they own the amount in nisab however the money is required for hajat asliyah,then they may be assisted with zakat money for their studies.
Allah Knows Best.