The Education (Student Loans) Regulations 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which come into force on 1st August 1997, supersede the Education (Student Loans) Regulations 1996 which are revoked (regulation 2).

Provisions in these Regulations which differ from the corresponding provisions of the 1996 Regulations (except as a result of minor drafting or consequential changes) are indicated by the use of heavy type. Omissions are indicated by the use of dots. The changes of substance made by these Regulations, other than in the maximum amounts of loans and rates of interest, are described below.

The provisions governing time and manner of repayment have been amended, so that a student who has borrowed in relation to different courses, consecutive or otherwise, will repay all his loans on the same payment schedule, determined or redetermined when he completes his most recent course. In the case of courses which are not consecutive the original repayment schedule will be suspended during the second course, and redetermined at the end of it (regulation 8(3)).

The discretion of the loans administrator to grant any relaxation or indulgence has been extended so that it applies not only in cases where the borrower is in breach of an obligation to repay the loan, but in any case where it is satisfied that such action represents a more effective means of recovering the debt due (regulation 9(a)).

It has been made clear that the loans administrator may demand repayment of the full amount of any loan in any case where instalments are in arrear, and the borrower is not entitled to defer repayment of those particular instalments (regulation 9(b)). It has also been made clear that where the loans administrator has demanded repayment of the full amount of any loan repayment of the loan may not be deferred (regulation 11(1)). The power to backdate deferment for up to 12 months from the date a notice of entitlement to deferment is given by the loans administrator has been reduced to a power to backdate for up to 3 months (regulation 11(3)).

The provisions governing eligibility have been amended to include a requirement that students other than European Economic Area migrant workers, their spouses and children, should be settled in the United Kingdom within the meaning of the Immigration Act 1971 (paragraph 1 of the Schedule). Settlement is defined in the Immigration Act as being ordinarily resident in the United Kingdom without being subject under the immigration laws to any restriction on the period for which the person in question may stay.

The provisions relating to European Economic Area migrant workers have been amended to ensure that British migrant workers returning from employment in the EEA have precisely the same entitlement to loans as migrant workers who are nationals of other member States of the EEA (paragraphs 2 and 5 of the Schedule).