Purpose of loan
10.—(1) The Scottish Ministers must apply the full amount of any loan made in respect of a liable student for the purpose of discharging the liability of that student to pay the graduate endowment and must not pay any part of the loan to the student or to any other person on his or her behalf.
(2) Where a liable student has made an application for a loan before the date referred to in regulation 5, the Scottish Ministers must apply the amount of his or her loan in accordance with paragraph (1) on the date referred to in regulation 5.
(3) Where a liable student has made an application for a loan after the date referred to in regulation 5, the Scottish Ministers must apply the amount of his or her loan in accordance with paragraph (1) as soon as reasonably practicable.
(4) Any loan made in respect of a liable student in accordance with these Regulations shall be applied for the purpose referred to in paragraph (1) and for no other purpose.