89.—(1) Subject to paragraph (3), where the basic amount of the grant for fees has been calculated in accordance with regulation 32(1) or 33(1), to determine the actual amount of grant for fees that is payable, the Department must first apply the contribution to reduce the basic amount of the grant for fees.
(2) If the contribution is not extinguished under paragraph (1), the Department must apply the remainder in accordance with regulation 90.
(3) Where the course is a course for the initial training of teachers (other than a course for a first degree), there is no deduction from the basic amount of the grant for fees under this regulation and the contribution is applied in accordance with regulation 90.
(4) Where the basic amount of the grant for fees has been calculated in accordance with regulation 32(2) or regulation 33(2) and one of the cases set out in regulation 25(3)(b) or (d) applies, to determine the actual amount of the grant for fees that is payable, the Department must—
(a)first, apply the contribution to reduce the basic amount of the grant for fees;
(b)second, if the contribution is not extinguished, deduct an amount equal to the basic amount of the grant for fees from what is left of the contribution reducing the remainder of the contribution to no less than nil; and
(c)third, if the contribution is still not extinguished, apply the remainder in accordance with regulation 90.
(5) In the case of an Erasmus year, the Department must apply the amount by which the contribution exceeds £1,310 in accordance with regulation 90.
(6) Where none of the circumstances in paragraphs (1) to (5) apply, the contribution is applied in accordance with regulation 90.