The Education (Student Support) Regulations 1999

• (9) Where the contribution available to reduce the maximum amount of grant referred to in paragraph (1)(d) exceeds that amount it shall be reduced to nil, and the balance of the contribution not required to reduce the amount to nil shall be available for the purpose of the following paragraph.

• (10) Where–

• (a) a balance of the contribution is available in accordance with paragraph (9), and

• (b) income referred to in paragraph 1(1)(b) of Schedule 3 is taken into account in calculating the contribution,

the balance, or such part of the balance as does not exceed the amount of income taken into account as described in sub-paragraph (b), whichever is less, shall be available to reduce or further reduce the maximum amounts of grant and loan for which the student is eligible in accordance with paragraph (11).

• (11) The contribution available to reduce the maximum amounts of grant and loan in accordance with paragraph (10) shall be subtracted from such amounts in the following order:

• (a) loan for living cost for which the student is eligible under Part V;

• (b) grant for fees for which the student is eligible under Part III;

• (c) grant for students who have left care under regulation 14;

• (d) grant for disabled students' living costs under regulation 13.

PART VII — PAYMENTS

Payment of grant for fees

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• (1) The Secretary of State shall pay the grant for fees for which a student is eligible when a valid request for payment has been received from the academic authority, payment to be made to it–

• (a) not before the expiry of three months from the beginning of the academic year;

• (b) not later than 10 weeks after the expiry of that period, or promptly after a valid request for payment has been received, if that is later.

• (2) The Secretary of State may make a provisional payment where assessment of the student’s contribution or other matters have delayed final calculation of the amount of grant for which the student is eligible.

• (3) No payment of grant for fees shall be made if–

• (a) before the expiry of three months from the beginning of the academic year the eligible student ceases to attend the course, and

• (b) the academic authority has determined or agreed that he will not commence attending again during the academic year in respect of which the fees are payable, or at all.

Payment of grants and loans for living costs

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• (1) Subject to the following paragraphs the Secretary of State shall pay grants for which a student is eligible under Part IV or loans for which a student has applied under Part V in such instalments (if any) and at such times as he considers appropriate; and in the exercise of his functions under this paragraph he may in particular make provisional payments pending the final calculation of the amount of grant or loan for which the student is eligible.

• (2) Grants for which a student is eligible under regulation 15 and loans for which a student has applied under Part V other than a loan under regulation 20 shall be payable in respect of three quarters of the academic year, and no instalment shall be payable in respect of the quarter during which in the opinion of the Secretary of State the longest of any vacations is taken.

• (3) The Secretary of State shall pay support referred to in paragraph (2) in the following instalments:

• (a) if the first instalment is paid during the first quarter of the academic year in respect of which the support is payable it shall be paid in three equal instalments during the quarters in respect of which it is payable;

• (b) if the first instalment is paid during the second quarter of the academic year in respect of which support is payable it shall be paid in two instalments during the quarters in respect of which it is payable, the first amounting to two thirds of the amount to be paid, and the second one third of that amount; and

• (c) if the first instalment is paid during the third quarter of the academic year in respect of which the support is payable it shall be paid in one instalment.

• (4) Payments shall be made in such manner as the Secretary of State considers appropriate, and he may make it a condition of entitlement to payment that the eligible student shall provide him with particulars of a bank or building society account in the United Kingdom into which payments may be made by electronic transfer.

• (5) Subject to regulation 7 no support referred to in paragraph (2) shall be payable in respect of a quarter beginning after an eligible student has withdrawn from, abandoned or been expelled from his course.

• (6) No support referred to in paragraph (2) shall be payable in respect of a quarter during any part of which an eligible student is absent from his course, unless in the opinion of the Secretary of State it would be appropriate in all the circumstances to pay all or part of the support.

• (7) In deciding whether it would be appropriate to pay all or part of the support under paragraph (6) the circumstances which the Secretary of State shall have regard to shall include the reasons for the student’s absence, the length of the absence, and the financial hardship which not paying all or part of the instalment would cause.

• (8) An eligible student shall not be considered to be absent from his course if he is unable to attend due to illness and his absence has not exceeded 60 days.

• (9) Where after the Secretary of State has made any payment of support referred to in paragraph (2) he makes a determination of the amount of grant for which the student is eligible in respect of an academic year under regulation 15 either for the first time or by way of revision of a provisional or other determination of that amount–

• (a) if the determination increases the amount of grant for which the student is eligible he shall pay the additional amount in instalments in accordance with paragraph (3), paying the first instalment as soon as is reasonably practicable after the determination and any subsequent instalment with instalments already payable;

• (b) if the determination decreases the amount of grant for which the student is eligible he shall subtract the amount of the decrease from any instalments of grant which remain to be paid under regulation 15, so that the instalments continue to bear the proportion to each other referred to in paragraph (3);

• (c) if the amount of the decrease is greater than the amount of grant remaining to be paid that amount shall be reduced to nil, and the balance subtracted from any other grant for which the student is eligible in respect of the academic year;

• (d) any remaining overpayment shall be recovered in accordance with regulation 25.

• (10) Where the Secretary of State has made any payment of support referred to in paragraph (2) and a student who is eligible for a loan under Part V other than a loan under regulation 20 applies for such a loan or applies for an additional such loan in respect of an academic year the Secretary of State shall pay the loan or the additional loan in instalments in accordance with paragraph (3), paying the first instalment as soon as is reasonably practicable after a satisfactory application has been received and any subsequent instalment with instalments already payable.

• (11) Where the Secretary of State has paid an instalment of loan for which a student is eligible in respect of an academic year under Part V and he makes a determination that the amount of loan for which the student is eligible is less than the amount previously determined, either by way of revision of a provisional determination or otherwise,–

• (a) he shall subtract such amount as is necessary to ensure that the student does not borrow an amount greater than the amount which he is eligible to borrow from any instalments of loan which remain to be paid, so that the instalments continue to bear the proportion to each other referred to in paragraph (3);

• (b) if the amount to be subtracted is greater than the amount of loan remaining to be paid that amount shall be reduced to nil;

• (c) any remaining overpayment shall be recovered in accordance with regulation 25.

Overpayments

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• (1) Any overpayment of grant for fees under Part III shall be recovered by the Secretary of State from the academic authority.

• (2) Any overpayment of grant for living costs under Part IV shall be recovered in such one or more of the following ways as the Secretary of State considers appropriate in all the circumstances:

• (a) by subtracting the overpayment from any other grant for which the student is eligible in respect of the academic year in question, or if necessary from any other grant for which he is eligible in respect of any other academic year;

• (b) by subtracting the overpayment from any payment of loan for living costs under Part V which is payable under regulation 24;

• (c) by taking such other action for the recovery of a payment without statutory authority as is available to him.

• (3) Any overpayment of a loan for living costs under Part V in respect of any academic year may be recovered if in the opinion of the Secretary of State–

• (a) the overpayment is a result of a failure of the student to provide promptly information which might affect his eligiblity for a loan or the amount of loan for which he is eligible, or

• (b) any information which he has provided is inaccurate in a material particular

but otherwise it shall be treated as a loan properly made under Part V which shall be repayable in accordance with the Act and Regulations made under it.

• (4) Where an overpayment of loan is treated as properly made under paragraph (3) the Secretary of State may subtract the overpayment from the amount of loan for which the student is eligible in respect of any other academic year.

• (5) Where an overpayment of loan for living costs is recoverable in accordance with paragraph (3) it shall be recovered in such one or more of the following ways as the Secretary of State considers appropriate in all the circumstances:

• (a) by subtracting the overpayment from the amount of loan for which the student is eligible in respect of any other academic year;

• (b) by subtracting the overpayment from any grant for which the student is eligible in respect of the academic year in question, or if necessary from any grant for which he is eligible in respect of any other academic year;

• (c) by taking such other action for the recovery of a payment made without statutory authority as is available to him.

PART VIII — LOAN REPAYMENTS AND INTEREST

Interest

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• (1) Subject to paragraph (2) loans shall bear interest at the rate which in relation to a loan made under these Regulations on or after 1st September 1999 will result in an annual percentage rate of charge determined in accordance with the Consumer Credit (Total Charge for Credit) Regulations 1980³³ equal to the percentage increase between the retail prices all items index published by the Office for National Statistics for March 1998 and that index so published for March 1999.

• (2) If the rate referred to in paragraph (1) exceeds the rate for the time being specified for the purposes of any exemption conferred by virtue of section 16(5)(b) of the Consumer Credit Act 1974³⁴ loans shall bear interest at the rate so specified.

• (3) Interest shall be calculated on the principal outstanding daily, and shall be added to the principal monthly.

• (4) The index of prices which the Secretary of State is required by section 22(8) of the Act to have regard to in prescribing the rate of interest which loans shall bear shall be the retail prices all items index mentioned in paragraph (1).

Repayments

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• (1) A borrower may pay any part of or all of any moneys he owes to the Secretary of State under the Act and Regulations at any time without charge or penalty.

• (2) A borrower shall not be required to pay any moneys he owes before 6th April 2000.

• (3) Any liability of a borrower under the Act and Regulations shall be cancelled if he–

• (a) dies;

• (b) is not in breach of any obligation to repay any loan and he has attained the age of 65; or

• (c) receives a disability related benefit and the Secretary of State is satisfied that because of his disability he is permanently unfit for work.

• (4) For the purposes of paragraph (3) “loan” has the meaning given it in regulation 4(3).

Insolvency

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• (1) In England and Wales there shall not be treated as part of a bankrupt’s estate or claimed for his estate under section 307 or 310 of the Insolvency Act 1986³⁵ any sum payable to an eligible student by way of a loan and which he receives or is entitled to receive after the commencement of the bankruptcy, whether his entitlement arises before or after the commencement of his bankruptcy.

• (2) In Scotland, where after the date of sequestration of a person’s estate, he receives, or is entitled to receive, sums by way of loan—

• (a) the sheriff shall not, in fixing an amount under subsection (2) of section 32 of the Bankruptcy (Scotland) Act 1985³⁶, treat the sums as income of the person; and

• (b) for the purpose of subsection (6) of that section the sums shall not be treated as estate vesting in, or requiring to be conveyed or delivered to, the person’s permanent trustee.

• (3) In Northern Ireland there shall not be treated as part of a bankrupt’s estate or claimed for his estate under Article 280 or 283 of the Insolvency (Northern Ireland) Order 1989³⁷ any sum payable to an eligible student by way of a loan and which he receives or is entitled to receive after the commencement of the bankruptcy, whether his entitlement arises before or after the commencement of his bankruptcy.

SCHEDULE 1 — ELIGIBLE STUDENTS

1

A person who on the first day of the first academic year of the course–

• (a) is settled in the United Kingdom within the meaning of the Immigration Act 1971³⁸, and

• (b) meets the residence conditions referred to in paragraph 8.

2

A person who is a refugee, ordinarily resident in the United Kingdom and Islands, who has not ceased to be so resident since he was recognised as a refugee, or who is the spouse, child or stepchild of such a refugee, in each case who meets the residence condition in paragraph 8(a).

3

A person who–

• (a) has been informed by a person acting under the authority of the Secretary of State for the Home Department that, although he is considered not to qualify for recognition as a refugee, it is thought right to allow him to enter or remain in the United Kingdom,

• (b) has been granted leave to enter or to remain accordingly, and

• (c) has been ordinarily resident in the United Kingdom and Islands throughout the period since he was granted leave to enter or remain

or who is the spouse, child or stepchild of such a person, where the person, or as the case may be the spouse, child or stepchild meets the residence conditions referred to in paragraph 8.

4

A person who is an EEA migrant worker who–

• (a) is entitled to support by virtue of Article 7(2) or (3) of Council Regulation (EEC) No. 1612/68 on freedom of movement of workers within the Community, as extended by the EEA Agreement³⁹, or, where he is a national of the United Kingdom, by virtue of an enforceable Community right to be treated no less favourably than a national of another member State in relation to matters which are the subject of Article 7(2) and (3); and

• (b) meets the residence conditions referred to in paragraph 8.

5

A person who is the spouse of an EEA migrant worker and who–

• (a) is installed in the United Kingdom with his spouse, and

• (b) meets the residence conditions referred to in paragraph 8.

6

• (1) A person who is the child of an EEA migrant worker and who–

• (a) is entitled to support by virtue of Article 12 of the above mentioned Council Regulation, or, where his migrant worker parent is a national of the United Kingdom, by virtue of an enforceable Community right to be treated no less favourably than the child of a national of another member State in relation to matters which are the subject of Article 12, and

• (b) meets the residence conditions referred to in paragraph 8.

• (2) For the purposes of this paragraph “parent” includes a guardian, any other person having parental responsibility for a child and any person having care of a child, and “child” shall be construed accordingly.

7

A person who is a national of a member State of the European Community–

• (a) whose course is provided by an institution or institutions in England and Wales, or by an institution or institutions in England and Wales in conjunction with an institution or institutions outside the United Kingdom, and

• (b) who meets the residence conditions referred to in paragraph 8(b) and (c).

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The residence conditions referred to above are that–

• (a) the person is ordinarily resident in England and Wales on the first day of the first academic year of the course;

• (b) the person has been ordinarily resident throughout the three year period preceding the first day of the first academic year of the course, in the case of a person mentioned in paragraphs 1 or 3, in the United Kingdom and Islands, or, in the case of a person mentioned in paragraphs 4, 5, 6 or 7, in the European Economic Area; and

• (c) his residence in the United Kingdom and Islands, or in the European Economic Area, as the case may be, has not during any part of the period referred to in sub-paragraph (b) been wholly or mainly for the purpose of receiving full-time education.

SCHEDULE 2 — DESIGNATED COURSES

1

A first degree course other than a course referred to in paragraph 4.

2

A course for the Diploma of Higher Education.

3

A course for the Higher National Diploma or Higher National Certificate of–

• (a) the Business & Technician Education Council; or

• (b) the Scottish Qualification Authority.

4

A course for the initial training of teachers, including such a course leading to a first degree.

5

A course for the further training of teachers or youth and community workers.

6

A course in preparation for a professional examination of a standard higher than that of–

• (a) examinations at advanced level for the General Certificate of Education or the examination at higher level for the Scottish Certificate of Education; or

• (b) the examination for the National Certificate or the National Diploma of either of the bodies mentioned in paragraph 3

not being a course for entry to which a first degree (or equivalent qualification) is normally required.

7

A course providing education (whether or not in preparation for an examination) the standard of which is–

• (a) higher than that of courses providing education in preparation for any of the examinations mentioned in paragraph (6)(a) or (b) above; but

• (b) not higher than that of a first degree course,

and for entry to which a first degree (or equivalent qualification) is not normally required.

SCHEDULE 3 — MEANS TEST

PART I — STUDENT'S INCOME

Calculation of student’s income

1

• (1) In calculating an eligible student’s income for the purposes of regulation 21 there shall be taken into account his income (reduced by income tax and social security contributions) from all sources, and any payment referred to in paragraph (b), whether or not it is income, but there shall be disregarded the following–

• (a) the first £820 of income of any description, or where the eligible student is a lone parent, the first £ of income of any description;

• (b) the first £1,000 of any payment by way of–

• (i) scholarship, studentship, exhibition, bursary, award, grant, allowance or benefit however described payable in connection with the student’s attendance on the course, otherwise than under the Act and regulations made under it; and

• (ii) in the case of a student in gainful employment, by way of remuneration (reduced by income tax and social security contributions) paid in respect of any period for which he has leave of absence or is relieved of his normal duties for the purpose of attending the course; except that, if the person’s course is a course for the initial training of teachers referred to in paragraph 4 of Schedule 2 during which the periods of full-time attendance, including attendance for the purpose of teaching practice, are in aggregate less than 6 weeks, any payments by way of remuneration shall be disregarded;

• (c) any payment under a bursary or award of similar description bestowed on him under section 63 of the Health Services and Public Health Act 1968⁴⁰;

• (d) any grant to facilitate teacher training paid to the eligible student under regulations made under section 50(1) of the Education (No. 2) Act 1986⁴¹;

• (e) in the case of an eligible student for whose benefit any income is applied or any payments are required to be applied as described in paragraph 5(5)–

• (i) the whole of that income or those payments if a parental contribution ascertained in accordance with Part II or a spouse’s contribution ascertained in accordance with Part III is applicable (at whatever amount including nil that contribution is ascertained to be), or

• (ii) the first £1,855 of that income or those payments if such a contribution would be applicable but for the fact that the eligible student is such a student as is described in paragraph 3(b), (c), (d), (e) or (f);

• (f) any pension, allowance or other benefit paid by reason of a disability to which the eligible student is subject which is not subject to income tax under the Income Tax Acts;

• (g) any bounty received as a reservist with the armed forces;

• (h) remuneration for work done during any academic year of the eligible student’s course;

• (i) in the case of an eligible student in whose case a parental contribution is by virtue of Part II of this Schedule applicable (at whatever amount, including nil, that contribution is ascertained to be) any payment which is made under covenant by a parent by reference to whose income that contribution falls to be ascertained;

• (j) any payment made for a specific educational purpose otherwise than to meet such fees as are mentioned in Part III and living costs as are mentioned in Parts IV and V;

• (k) child benefit payable under Part IX of the Social Security Contributions and Benefits Act 1992⁴²;

• (l) any allowance payable to the eligible student by an adoption agency in accordance with regulations made under section 57A of the Adoption Act 1976⁴³;

• (m) any guardian’s allowance to which he is entitled under section 77 of the Social Security Contributions and Benefits Act 1992⁴⁴;

• (n) in the case of an eligible student with whom a child in the care of a local authority is boarded out, any payment made to him in pursuance of section 23 of the Children Act 1989⁴⁵;

• (o) any payments made to the eligible student in pursuance of an order made under section 34 of the Children Act 1975⁴⁶ or under section 15 of and Schedule 1 to the Children Act 1989 or any assistance given by a local authority pursuant to section 24 of that Act;

• (p) income support or family credit under Part VII of the Social Security Contributions and Benefits Act 1992;

• (q) any housing benefit or community charge benefits granted to the eligible student in pursuance of a statutory or local scheme under Part VII of the Social Security Contributions and Benefits Act 1992 or any council tax benefit granted to him in pursuance of a statutory or local scheme under that Act;

• (r) the first £3,105 of any pension, allowance or other benefit payable by reason of disability to which the eligible student is subject, his old age, his retirement, the death of his spouse or parent or another person on whom he was wholly or mainly financially dependent, or by reason of his military or other public service;

• (s) any payments made to the eligible student under the action scheme of the European Community for the mobility of university students known as ERASMUS⁴⁷, the European Community programme for foreign language competence known as LINGUA⁴⁸ or the European Community programme known as LEONARDO DA VINCI⁴⁹;

• (t) any payment made to the eligible student out of access funds held by the institution at which he attends his course.

• (2) Where income may be disregarded under more than one of the sub-paragraphs of paragraph (1) it shall be disregarded under the sub-paragraph or sub-paragraphs which will result in the largest amount of the eligible student’s income from all sources being disregarded under paragraph (1).

• (3) Where an eligible student is a person mentioned in paragraph 7 of Schedule 1 and not in any other paragraph and his income arises from sources or under legislation different from sources or legislation normally relevant to a person mentioned in paragraph 1 of Schedule 1 his income shall not be disregarded in accordance with paragraph (1) but shall be disregarded to the extent necessary to ensure that he is treated no less favourably than a person in similar circumstances in receipt of similar income who is mentioned in Schedule 1 would be treated.

• (4) In the case of an eligible student who makes any payment in pursuance of an obligation incurred before the first year of his course, in calculating his income for the purposes aforesaid there shall be deducted therefrom–

• (a) if, in the opinion of the Secretary of State, the obligation had been reasonably so incurred, an amount equal to the payment in question;

• (b) if, in his opinion, only a lesser obligation could have been reasonably so incurred, such correspondingly lesser amount (if any) as appears to him appropriate;

except that no deduction shall be made from the income of a married student where the student’s spouse is a dependant for the purpose of regulation 15 and, in pursuance of regulation 15(12) the payment is taken into account in determining the spouse’s income.

• (5) In a case where the eligible student is the parent or step-parent of an eligible student in respect of whom a contribution is ascertained under Part II of this Schedule, so much of the amount (if any) by which the contribution is reduced under paragraph 4(3) as the Secretary of State considers just shall be treated as part of the eligible student’s income for the purposes of this regulation.

• (6) Where the eligible student is a lone parent having one or more dependent children under the age of 19 within the meaning of regulation 15 he may elect to be ineligible for grant under that regulation and to have disregarded in calculating his income under this regulation £2,380 in respect of his only or eldest such child and £750 in respect of every other such child.

• (7) Where the eligible student receives income in a currency other than sterling the value of the income shall be–

• (a) if the student purchases sterling with the income the amount of sterling the student receives for it, and

• (b) otherwise the value of the sterling which the income would purchase using the rate for the month in which it is received published by the Office for National Statistics in “Financial Statistics”.

PART II — PARENTAL CONTRIBUTION

Definitions and construction of Part II

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• (1) In this Part of this Schedule–

• “child” includes a step-child but, except in paragraph 4, does not include a child who holds a statutory award; and, except as otherwise provided by paragraph 5, “parent” shall be construed accordingly;

• “financial year” means the period of 12 months for which the income of the eligible student’s parent is computed for the purposes of the income tax legislation which applies to it;

• “gross income” has the meaning assigned to it by paragraph 5;

• “income of the student’s parent” means the taxable income of the parent from all sources computed as for the purposes of the Income Tax Acts or as for the purposes of the income tax legislation of another member State of the European Community which applies to the parent’s income, or where the legislation of more than one member State applies in respect of the same period, as for the purposes of the legislation pursuant to which the Secretary of State considers that the parent will pay the largest amount of tax in that period, except as otherwise provided by paragraph 5 or 6;

• “residual income” means, subject to sub-paragraph (2), the balance of gross income remaining in any year after the deductions specified in paragraph 6 have been made;

• (2) Where, in a case not falling within paragraph 5(3) or (4), the Secretary of State is satisfied that the income of the parent in any financial year is as a result of some event beyond his control likely to be, and to continue after that year to be, not more than 85 per cent. of his income in the financial year preceding that year, he may, for the purpose of enabling the eligible student to attend the course without hardship, ascertain the parental contribution for the year of his course in which that event occurred by taking as the residual income the average of the residual income for each of the financial years in which that year falls.

• (3) Where the eligible student’s parent satisfies the Secretary of State that his income is wholly or mainly derived from the profits of a business or profession carried on by him, then, if the Secretary of State and the parent so agree, any reference in this Part of this Schedule to a financial year shall be construed as a reference to a year ending with such date as appears to the Secretary of State expedient having regard to the accounts kept in respect of that business or profession and the periods covered thereby.

• (4) Where a parent is in receipt of any income which does not form part of his taxable income by reason only that–

• (a) he is not resident, ordinarily resident or domiciled in the United Kingdom, or where the parent’s income is computed as for the purposes of the income tax legislation of another member State of the European Community, not so resident, ordinarily resident or domiciled in that member State,

• (b) the income does not arise in the United Kingdom, or where the parent’s income is computed as for the purposes of the income tax legislation of another member State, does not arise in that member State, or

• (c) the income arises from an office, service or employment, income from which is exempt from tax in pursuance of any legislation,

his income for the purposes of this Part of the Schedule shall be computed as though the income first mentioned in this sub-paragraph were part of his taxable income.

• (5) Where the income of the eligible student’s parent is computed as for the purposes of the income tax legislation of another member State–

• (a) it shall be computed in the currency of that member State,

• (b) the value of any deduction mentioned in paragraph 6(2) shall be the amount of that currency required to purchase the sterling value of the deduction, and

• (c) the value of the sterling which the income of the eligible student’s parent in that currency would purchase shall be determined, and shall constitute the income of the student’s parent for the purposes of this Part.

• (6) The rate applied in determining the sterling value of another currency under paragraph (5) shall be the rate for the month in which the last day of the financial year in question falls published by the Office for National Statistics in “Financial Statistics”.

Application of Part II

3

• (1) A parental contribution ascertained in accordance with this Part shall be applicable in the case of every eligible student except where–

• (a) he is aged 25 or over on the first day of the first academic year in respect of which the contribution is applicable;

• (b) he has supported himself out of his earnings for periods before the first academic year of the course aggregating not less than three years;

• (c) he has been married for at least two years before the beginning of the academic year in respect of which the contribution is applicable, whether or not the marriage is still subsisting;

• (d) he has no parent living;

• (e) the Secretary of State is satisfied that his parents cannot be found or that it is not reasonably practicable to get in touch with them;

• (f) he is irreconcilably estranged from his parents;

• (g) he has pursuant to an order of a competent court been in the custody or care of or has been provided with accommodation by–

• (i) a state authority or agency, national, regional or local,

• (ii) a voluntary or charitable organisation, or

• (iii) any person who is not the student’s parent

throughout any three month period ending on a date on or after the date on which he attains the age of 16 and before the first day of his course; provided that he has not at any time from the beginning of the three month period to the first day of his course in fact been under the charge or control of his parents;

• (h) his parents are residing outside the European Community and the Secretary of State is satisfied either that–

• (i) the assessment of a parental contribution would place those parents in jeopardy; or

• (ii) it would not be reasonably practicable for those parents to send any such contribution to the United Kingdom;

• (i) paragraph 5(7) applies and the parent whom the Secretary of State considered the more appropriate for the purposes of that sub-paragraph has died;

• (j) he is a member of a religious order who resides in a house of his order.

• (2) For the purposes of paragraph (1)(b) an eligible student shall be treated as having supported himself out of his earnings for any period or periods for which–

• (a) he was participating in arrangements for training for the unemployed under any scheme operated by, sponsored or funded by any state authority or agency, national, regional or local;

• (b) the student was in receipt of benefit payable by any state authority or agency, national, regional or local, in respect of a person who is available for employment but who is unemployed;

• (c) the student was available for employment and had complied with any requirement of registration imposed by a body referred to in paragraphs (a) or (b) as a condition of entitlement for participation in arrangements for training or receipt of benefit;

• (d) the student held a State Studentship or comparable award;

• (e) the student received any pension, allowance or other benefit paid by reason of a disability to which he is subject, or by reason of confinement, injury or sickness, paid by any state authority or agency, national, regional or local, by an employer or any former employer, or by any other person; or

• (f) the student could not reasonably have been expected to support himself out of his earnings because he had the care of a person under the age of 18 years who was wholly or mainly financially dependent upon him.

• (3) For the purposes of paragraph (1)(f) an eligible student shall be regarded as irreconcilably estranged from his parents if, but not only if, he has communicated with neither of them for the period of one year before the beginning of the year for which payments in pursuance of his award fall to be made.

Parental contribution

4

• (1) The parental contribution shall, subject to sub-paragraphs (2), (3) and (4) be–

• (a) in any case in which the residual income is £17,370 or more but less than £22,200, £45 with the addition of £1 for every complete £13 by which it exceeds £17,370;

• (b) in any case in which the residual income is £22,200 or more but less than £32,635, £416 with the addition of £1 for every complete £9.20 by which it exceeds £22,200; and

• (c) in any case in which the residual income is £32,635 or more, £1,550 with the addition of £1 for every complete £7.50 by which it exceeds £32,635,

reduced in each case in respect of each child of the parent (other than the student) who is wholly or mainly financially dependent on him on the first day of the year for which the contribution falls to be ascertained, by £75; and in any case in which the residual income is less than £17,370 the parental contribution shall be nil.

• (2) The amount or (where a contribution is ascertained in respect of more than one child of the parent) the aggregate amount of the parental contribution shall in no case exceed £6,280.

• (3) For any year in which a statutory award is held by–

• (a) more than one child of the parent;

• (b) the parent; or

• (c) the student’s step-parent,

the parental contribution for the eligible student shall be such proportion of any contribution ascertained in accordance with this Part as the Secretary of State (after consultation with any other authority involved) considers just; provided that where a contribution is ascertained in respect of more than one child of the parent the aggregate amount of the contributions in respect of each shall not exceed the amount of the contribution that would be ascertained if only one child held an award.

Gross income

5

• (1) For the purposes of this paragraph “preceding financial year” means the financial year preceding the academic year in respect of which the resources of the eligible student fall to be assessed and “current financial year” means the financial year which includes the first day of the academic year; provided that where references to a financial year fall to be construed in accordance with paragraph 2(3) as references to a year ending less than five months before the beginning of an academic year of the eligible student’s course, “preceding financial year” shall mean the financial year last ending five or more months before the academic year in respect of which the resources of the eligible student fall to be assessed and “current financial year” shall mean the financial year ending within those five months.

• (2) Subject to the provisions of this paragraph, “gross income” means the income of the student’s parent in the preceding financial year or, for the purpose of calculating residual income under paragraph 2(2), in the financial year there mentioned.

• (3) Where the Secretary of State is satisfied that the sterling value of the income of the student’s parent in the current financial year is likely to be not more than 85 per cent. of the sterling value of his income for the preceding financial year, he may for the purpose of calculating the parental contribution ascertain the gross income by reference to the current financial year; and in such case sub-paragraph (2) shall have effect, in relation to the academic year in respect of which the eligible student’s resources fall to be assessed and, if the Secretary of State so determines, any subsequent year, as if the reference therein to the preceding financial year were a reference to the current financial year.

• (4) Where–

• (a) one of the eligible student’s parents dies either before or during the year in respect of which the resources of the student fall to be ascertained (“the relevant year”); and

• (b) that parent’s income has been or would be taken into account for the purpose of determining the parental contribution,

the parental contribution shall–

• (c) where the parent dies before the relevant year, be determined by reference to the income of the surviving parent; or

• (d) where the parent dies during the relevant year, be the aggregate of–

• (i) the appropriate proportion of the contribution determined by reference to the income of both parents, that is to say such proportion thereof as the part of the relevant year during which both parents were alive bears to the full year; and

• (ii) the appropriate proportion of the contribution determined by reference to the income of the surviving parent, that is to say such proportion thereof as the part of the relevant year remaining after the parent dies bears to the full year.

• (5) Without prejudice to sub-paragraph (6), where, in pursuance of any trust deed or other instrument or by virtue of any applicable legislation any income is applied by any person for or towards the maintenance, education or other benefit of the eligible student or of any person dependent on the student’s parent, or payments made to his parent are required to be so applied, that income, or those payments, shall be treated as part of the gross income of the parent.

• (6) Where any such benefit as is mentioned in paragraph 1(1)(b)(i) of Part I of this Schedule is provided, by reason of the parent’s employment, for any member of his family or household who is an eligible student (whether the student or some other such member) then that benefit shall not be treated as part of the gross income of the parent.

• (7) Where the parents do not ordinarily live together throughout the year in respect of which the resources of the eligible student fall to be ascertained (“the relevant year”), the parental contribution shall be determined by reference to the income of whichever parent the Secretary of State considers the more appropriate in the circumstances.

• (8) Where the parents do not ordinarily live together for part only of the relevant year, the parental contribution shall be the aggregate of–

• (a) the appropriate proportion of the contribution determined as provided in sub-paragraph (7), that is to say such proportion thereof as the part of the relevant year for which the parents do not so live together bears to the full year; and

• (b) the appropriate proportion of the contribution determined without regard to this sub-paragraph, that is to say, such proportion thereof as the part of the relevant year for which the parents so live together bears to the full year.

• (9) Where one of the eligible student’s parents is his step-parent the parental contribution shall be ascertained by reference only to the income of the other parent.

Deductions

6

• (1) For the purposes of determining the income of a student’s parent (and, accordingly, the parent’s gross income), in computing his taxable income as for the purposes of the Income Tax Acts or for the purposes of the income tax legislation of another member State of the European Community any deductions which fall to be made or exemptions which are permitted–

• (a) by way of personal reliefs provided for in Chapter I of Part VII of the Income and Corporation Taxes Act 1988⁵⁰, or where the parent’s income is computed as for the purposes of the income tax legislation of another member State, any comparable personal reliefs;

• (b) in respect of any payment made by the parent under covenant;

• (c) in pursuance of any legislation or rule of law with the effect that payments which for the purposes of the law of the United Kingdom are treated as income are not treated as income; or

• (d) without prejudice as aforesaid, of a kind mentioned in sub-paragraph (2),

shall not be made or permitted.

• (2) For the purpose of determining a parent’s residual income there shall be deducted from his gross income–

• (a) in respect of any person, other than a spouse, child or eligible student, wholly or mainly financially dependent on the parent during the year for which the contribution falls to be ascertained, the amount by which £2,195 exceeds the income of that person in that year;

• (b) the gross amount of any sums paid as interest (including interest on a mortgage) in respect of which relief is given under the Income Tax Acts in respect of a loan to the parent, or where the parent’s income is computed as for the purposes of the income tax legislation of another member State, the gross amount of any such sums in respect of which relief would be given if that legislation made provision equivalent to the Income Tax Acts;

• (c) half of the gross amount of any premium payable under a policy of life insurance in respect of which relief is given under section 266 of the Income and Corporation Taxes Act 1988 (life policy and certain other premiums), or where the parent’s income is computed as for the purposes of the income tax legislation of another member State, half of the gross amount of any such premium in respect of which relief would be given if that legislation made provision equivalent to the Income Tax Acts;

• (d) the gross amount of any other premium or sum in respect of which relief is given under section 266, 273, 619 or 639 of that Act, or where the parent’s income is computed as for the purposes of the income tax legislation of another member State, the gross amount of any such premium in respect of which relief would be given if that legislation made provision equivalent to the Income Tax Acts;

• (e) where the parents ordinarily live together and one of them is incapacitated, so much of the cost in wages of domestic assistance as does not exceed £1,720;

• (f) where a parent whose marriage has terminated either is gainfully employed or is incapacitated, so much of the cost in wages of domestic assistance as does not exceed £1,720;

• (g) in respect of additional expenditure incurred by reason of the fact that the parent lives in a place where the cost of living is higher than that cost in the United Kingdom, such sum (if any) as the Secretary of State considers reasonable in all the circumstances;

• (h) any payments made to the parent of the student in pursuance of an order of a competent court for the benefit of a child who is not his child of whom he has custody or care or for whom he provides accommodation.

• (3) In any case where income is computed as for the purposes of the Income Tax Acts by virtue of paragraph 2(4), there shall be deducted from the parent’s gross income sums equivalent to the deductions mentioned in paragraph (2)(b), (c) or (d), provided that any sums so deducted shall not exceed the deductions that would be made if the whole of the parent’s income were in fact taxable income for the purposes of the Income Tax Acts.

PART III — SPOUSE'S CONTRIBUTION

Application of Part III

7

A spouse’s contribution ascertained in accordance with this Part shall be applicable in the case of every man student ordinarily living with his wife and every woman student so living with her husband except–

• (a) a student in whose case a parental contribution is applicable in accordance with Part II; and

• (b) an eligible student whose child holds an award in respect of which a parental contribution is applicable.

Spouse’s contribution

8

• (1) Subject to sub-paragraphs (3) and (4), Part II above, except paragraphs 3, 4(1), (2), (3)(a) and (c), 5(4), (7), (8) and (9), and 6(2)(f), shall apply with the necessary modifications for the ascertainment of the spouse’s contribution as it applies for the ascertainment of the parental contribution, references to the parent being construed, except where the context otherwise requires, as references to the eligible student’s spouse and, unless the context otherwise requires, this Part shall be construed as one with the said Part II.

• (2) The spouse’s contribution shall be–

• (a) in any case in which the residual income is £14,700 or more but less than £22,200, £45 with the addition of £1 for every complete £9.80 by which it exceeds £14,700;

• (b) in any case in which the residual income is £22,200 or more but less than £32,635, £810 with the addition of £1 for every complete £7.05 by which it exceeds £22,200; and

• (c) in any case in which the residual income is £32,635 or more, £2,290 with the addition of £1 for every complete £5.60 by which it exceeds £32,635;

reduced in any such case by £75 in respect of each child of the eligible student who is dependent on him or his spouse on the first day of the year for which the contribution falls to be ascertained; and in any case in which the residual income is less than £14,700 the spouse’s contribution shall be nil; provided that the amount of the spouse’s contribution shall in no case exceed £6,280.

• (3) If the eligible student marries during any academic year for which the contribution falls to be ascertained the contribution for that year shall be the fraction of the sum ascertained in accordance with the provisions of sub-paragraphs (1) and (2) of which the denominator is 52 and the numerator is the number of complete weeks between the date of the marriage and whichever is the earlier of the end of that year and the end of the course.

• (4) If the eligible student’s marriage terminates during any academic year for which the contribution falls to be ascertained the contribution for that year shall be the fraction of the sum ascertained in accordance with the provisions of sub-paragraphs (1) and (2) of which the denominator is 52 and the numerator is the number of complete weeks between the beginning of that year and the termination of the marriage.

Signed

Tessa Blackstone — Minister of State, — Department for Education and Employment — 24th February 1999

Explanatory note

(This note is not part of the Regulations)

These regulations, which come into force on 3rd March 1999 are the second regulations made under section 22 of the Teaching and Higher Education Act 1998. They provide for grants for fees, loans for maintenance and supplementary grants for maintenance for eligible students in connection with their attendance on designated higher education courses in an academic year beginning on or after 1st September 1999. They are the first regulations under the 1998 Act to draw together provision for grants and loans, both of which are now in part means tested. They apply to students who began their courses in September 1998 or later. Students who began their courses before then, and certain students who began their courses after then, remain subject to the previous system of mandatory awards for fees and maintenance, and mortgage style loans for maintenance.

Transitional provisions ensure that students who started courses in the 1998/99 academic year and who were eligible for grants under the Education (Mandatory Awards) Regulations 1998 and/or loans under the Education (Student Support) Regulations 1998 will continue to be eligible for grants or loans respectively under the 1999 Regulations in the second and subsequent years of their courses (regulation 3(6) and (7)).

Students are eligble for financial support under the Regulations if on the first day of the first academic year of the course they are settled in the United Kingdom for the purposes of the Immigration Act 1971, on that day they are ordinarily resident in England and Wales, and for the three years immediately preceding that day they have been ordinarily resident in the United Kingdom and Islands for purposes other than receiving full-time education (Schedule 1, paragraphs 1 and 8). Students may also be eligible if they are refugees, if they have been given exceptional leave to enter or remain in the United Kingdom, or if they are European Economic Area migrant workers, or the spouses or children of such workers (Schedule 1, paragraphs 2 to 6). Such students must also be ordinarily resident in England and Wales on the first day of the course and in certain cases meet residence requirements (Schedule 1, paragraph 8).

Students who are nationals of a member State of the European Community (including the United Kingdom) who are attending a course in England and Wales are eligible for grants for fees (Schedule 1, paragraph 7). Such students must for the three years immediately preceding the first day of the academic year of the course have been ordinarily resident in the European Economic Area for purposes other than receiving full-time education (Schedule 1, paragraph 8). Students who are eligible to receive certain non-means-tested National Health Service bursaries or awards, who are in breach of any obligation to repay any student loan, who have failed to ratify any other student loan they received when they were under the age of 18, or who have shown themselves by their conduct to be unfitted to receive support, are ineligible (regulation 4(2)).

A student will generally not be eligible for grants for fees who has previously attended a full-time course provided by an institution in the United Kingdom maintained or assisted from public funds, or who has otherwise previously received support from public funds which was available to defray fees (regulation 10(2)). Exceptions to this are where the present course is a course of initial teacher training, or the student has attended one previous course for not more than one academic year (regulation 10(4)). Students who have previously attended one or more courses of up to two years' duration in total are eligible for limited grant for fees (regulation 10(5)). Students participating in the ERASMUS scheme, whose periods of study in the academic year are all at an institution outside the United Kingdom, are not eligible for grants for fees for the year in question (regulation 10(7)). These students have their fees automatically paid from other funds.

Students who repeat part or all of their course may receive grant for fees for the repeat period. Except where the student is repeating all or part of the first year for the first time, eligibility for grant for fees is at the Secretary of State’s discretion (regulation 10(8)).

Students who receive consent or recommendation to transfer before they start the second year of their course are eligible for grant for fees for the duration of the second course. Where the consent or recommendation is received later, the student is eligible for support (including that which he has already received) for the number of years equal to the ordinary duration of whichever is the longer of the original or the new course (regulation 10(9)).

To be eligible for a loan and for grants for living costs a student must be aged under 50 on the first day of the first academic year of the course, or aged between 50 and 54 years and intending to return to employment on completing his studies (regulations 12(1) and 17(1)). Students aged 50 or over who started courses in the academic year beginning 1st September 1998 will now be eligible for loans if they have the required intention; if they were entitled to grants for living costs under the Education (Mandatory Awards) Regulations 1998 they will continue to be eligible for supplementary grants for living costs under these Regulations in any case (regulation 3(6)).

Students are not eligible for grants for living costs who are eligible to receive one of certain means-tested National Health Service bursaries or awards, who are on part-time courses of initial teacher training involving less than six weeks' full-time attendance during the academic year (regulation 12(3)), or who are on sandwich placements other than certain unpaid placements (regulation 12(4)).

To be eligible students must also attend a designated course (regulation 5). Courses which are designated courses for the purposes of the Act and Regulations are specified in Schedule 2. Such courses must be full-time or sandwich courses or part-time courses for the initial training of teachers, of at least one academic year’s duration, and be provided at least in part by an institution or institutions in the United Kingdom which are maintained or assisted by recurrent grants out of public funds (regulation 5(1)). The Secretary of State may designate other courses by administrative act from time to time (regulation 5(9)).

Students must apply for student support under the Regulations by submitting an application form, usually not later than four months after the first day of the course, or not later than sixteen months after the first day if the course started in the 1998/99 academic year. They must provide evidence of their place and date of birth and any other evidence which the Secretary of State requires to establish their eligibility (regulation 6).

Students may request that their eligibility for support be transferred to another course, either at the same or a different institution. In some cases the recommendation or consent of the institution and any other institution concerned must be obtained. The Secretary of State may refuse such a transfer in certain cases (regulation 7).

A student’s eligibility may be terminated where the period ordinarily required to complete the course has expired, where the student has withdrawn from, abandoned or been expelled from his course, or where he has shown himself unfitted by his conduct to receive support (regulation 8).

Students must provide any information required by the Secretary of State in exercising his functions under the Regulations as soon as reasonably practicable, and notify him immediately if any of certain particulars relating to their attendance on a course change (regulation 9).

Specified grants for living costs are available in respect of extra costs arising from a disability; to certain students who have been in custody or care pursuant to a court order; in respect of dependants; and in respect of certain travel costs above a disregard (regulations 13 to 16).

Students are eligible for different rates of loan according to where they live and study; whether they are in their final year of the course; and whether they are studying at an overseas institution as a necessary part of the course. Students who have to attend their courses above a certain number of weeks in the academic year are eligible for additional loans at a weekly rate (regulation 18).

Students who are eligible to receive one of certain means-tested National Health Service bursaries or awards, who are on sandwich placements (other than certain unpaid placements specified in regulation 12(4) where the periods of full-time study at the institution during the academic year are less than ten weeks in total, or who are on part-time courses of initial teacher training involving less than six weeks' full-time attendance during the academic year, are eligible for non-means-tested loans at 50 per cent of the rates specified (regulation 18(11)).

Students who are eligible for a loan and who wish to apply for a loan in relation to an academic year must submit an application in such form as the Secretary of State requires not later than one month before the end of the academic year (regulation 19(1)). The student must include in the application his United Kingdom national insurance number, if he has one, his most recent student loan account number, if any, and details of two persons known to him (regulation 19(2)).

Where the Secretary of State determines that the maximum amount of loan notified to a student in relation to an academic year should be increased, and this is not due to the eligible student failing to provide information promptly or providing inaccurate information, the student may apply for an additional amount which when added to the amount already applied for does not exceed the increased maximum (regulation 19(4)).

In any case where a student has received at least one instalment of loan in relation to an academic year and has not applied for the maximum amount to which he is entitled in relation to the academic year, he may apply once only to borrow an additional amount which when added to the amount already applied for does not exceed the increased maximum (regulation 19(7)).

A student who has applied for the maximum amount of loan in relation to an academic year which has been notified to him, and who has received at least one instalment of that loan, may apply for a hardship loan of not less than £100 and not more than £250 and which is a multiple of £25 (regulation 20(2)). He must satisfy the Secretary of State that due to exceptional financial hardship he may not be able to continue to attend for the balance of the academic year (regulation 20(4)). The Secretary of State shall determine the amount of hardship loan which he considers the student requires (regulation 20(4)). The student must then apply for the hardship loan not later than one month after he receives notice of this determination and not later than one month before the end of the academic year (regulation 20(5)).

A student’s contribution to his fees and living costs, if any, in relation to an academic year is the aggregate of his income for the year and any parental or spouse’s contribution (regulation 21). Contributions are calculated in accordance with Schedule 3. In calculating a student’s income, income from certain sources, and the first elements of income from certain other sources, is disregarded (Schedule 3, paragraph 1(1)). There are special provisions for the calculation of income where the student is eligible for grant for fees as a national of another member State of the European Community, where the student makes any payment in pursuance of an obligation incurred before the first year of the course, where the student is a step-parent or parent of an eligible student, where the student has one or more dependent children, and where the student receives income in a currency other than sterling (Schedule 3, paragraph 1(3) to (7)).

A parental contribution ascertained in accordance with Part II of Schedule 3 is applicable except in certain specified circumstances (paragraph 3), and is calculated under paragraph 4 of that Part on the basis of the parent’s gross income in the preceding tax year less certain deductions (paragraph 5(1) and (2) and paragraph 6). In certain circumstances the contribution is calculated on the basis of income for the current tax year (paragraph 5(3)). There are also special provisions for where one of the eligible student’s parents dies before or during the year in respect of which the resources of the student fall to be ascertained (paragraph 5(4)).

The deductions made from the parent’s gross income include, in certain circumstances, allowances for other dependants, the gross amount of any sums paid as interest which qualify for tax relief, half of the gross amount of any life assurance premiums which qualify for tax relief, the gross income of any other premiums or sums which qualify for tax relief, amounts for domestic assistance, additional expenditure incurred by reason of the parent living in a place where the cost of living is higher than that in the United Kingdom, an amount where the parent is an eligible student, and any payments made in pursuance of an order of a competent court for the benefit of a child who is not his child of whom he has custody or care or provides accommodation (Schedule 3, paragraph 6).

Provisions for ascertaining a spouse’s contribution in Schedule 3 Part III broadly mirror those for parental contributions. There are special arrangements for calculating the spouse’s contribution where a student marries, or a marriage is terminated, during any academic year for which the contribution falls to be ascertained (Schedule 3, paragraphs 8(3) and (4)).

The maximum amounts of grants or loans for which a student is eligible are the amounts remaining after subtracting his contribution from the maximum amount of any grant for fees (except in respect of attendance on a course at an institution which is neither maintained nor assisted out of public funds, or on a course for the initial training of teachers other than a first degree course), grants for dependants, an element of loan for living costs (except where the student is eligible for loans at 50 per cent. of the rates specified in regulation 18) and grant for travel costs (regulation 22).

Where a lower maximum grant for fees is applicable in relation to an academic year, or where none is applicable because the student is participating in the ERASMUS scheme, it is assumed in applying the student contribution that the usual maximum grant for fees is available. This is so that the contribution is applicable to other elements of support in the same way that it would be if the usual grant for fees were available (regulation 22(3)).

Where the student’s contribution exceeds the maximum amounts of grant for fees, grants for dependants, loan for living costs and grant for travel costs to which it is applicable, and where his income includes income from a scholarship, studentship or similar award payable in connection with the student’s attendance on the course, or income from an employer who has given the student paid leave to attend the course, the balance of the contribution, or such part of it as does not exceed the amount of such income, is applied to reduce elements of support not already reduced, that is: non-means-tested loan for living costs; non-means-tested grant for fees; grant for students who have left care; and grant for disabled students' living costs (regulation 22(7) and (8)).

Grants for fees are paid on receipt of a valid request for payment from the academic authority, but not earlier than three months after the beginning of the academic year and not later than ten weeks after the end of that period. Payments are to be made promptly where the request is received after that period. No payments shall be made if within that three month period the eligible student ceases to attend the course and the academic authority has determined or agreed that he will not commence attending again during the academic year in respect of which the fees are payable (regulation 23(1) to (3)).

Grants for dependants and loans (other than hardship loans) are payable in respect of three quarters of the academic year (regulation 24(2)). Payments are made in up to three instalments, depending on whether the first instalment is to be paid in the first, second or third quarter (regulation 24(3)), and in such manner as the Secretary of State considers appropriate. He may make it a condition of entitlement to payment that the eligible student provides particulars of a United Kingdom bank or building society account into which payment may be made by electronic transfer (regulation 24(4)). Support is not payable in respect of a quarter beginning after a student has withdrawn from, abandoned or been expelled from his course. Nor is it normally payable in respect of a quarter during any part of which the student is absent from his course (regulation 24(5) to (8)).

There are provisions for circumstances where, following payment of any amount of grant for dependants or loan, the Secretary of State makes a determination of that amount which either increases or decreases it (regulation 24(9) to (11)). Where it is increased, the additional amount is payable in instalments in accordance for which the student is eligible in respect of an academic year. Therefore, the first instalment is paid as soon as reasonably practicable and subsequent instalments with instalments already payable. Where it is decreased, the amount of the decrease is deducted from instalments remaining to be paid. Where it exceeds the amount of instalments remaining to be paid, the balance is, in the case of grant, subtracted from other grant for which the student is eligible in respect of the academic year. Where a balance remains (be it grant or loan), it is recovered in accordance with regulation 25.

Overpayments of grant for fees are recovered from the academic authority (regulation 25(1)). Overpayments of grant for living costs are recovered by subtracting them from any other grant for which the student is eligible in relation to the academic year, or if necessary any other academic year, or from any payment of loan, or by taking such other action as is available (regulation 25(2)).

Where an overpayment of loan has been made due to the eligible student failing to provide information promptly or providing inaccurate information, it may be subtracted from the amount of loan for which the student is eligible in respect of any other academic year, or from any grant for which the student is eligible in relation to the academic year, or if necessary any other academic year, or by taking such other action as is available (regulation 25(3) and (5)). Where an overpayment of the loan has not been so made, it is not recoverable but may be deducted from the amount of loan for which the student is eligible in relation to any other academic year (regulation 25(4)).

Loans shall bear interest at a rate which results in an annual percentage rate of charge equal to the percentage increase between the retail prices all items index published for March 1998 and that for March 1999, unless this exceeds the rate specified for the purposes of any exemption conferred by virtue of section 16(5)(b) of the Consumer Credit Act 1974, in which case they shall bear interest at that rate. Interest is calculated daily and compounded monthly (regulation 26).

Borrowers may repay their loans at any time without penalty, but shall not be required to repay any moneys they owe before 6th April 2000. The liability of a borrower will be cancelled if he dies; if he is not in breach of any obligation to repay any student loan and he reaches the age of 65, or if he receives a disability related benefit and the Secretary of State is satisfied that because of his disability he is permanently unfit for work (regulation 27).

Instalments of student loans paid or payable after the commencement of a student’s bankruptcy, or in Scotland the sequestration of his estate, shall not form part of his estate, and accordingly cannot be claimed by his trustee (regulation 28).

Footnotes