The Education (Student Loans) (Scotland) Regulations 1999

Payment of loans

13.—(1) Subject to the following paragraphs the Secretary of State may pay loans for which an eligible student has applied under these Regulations 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 loan for which the student is eligible.

(2) Loans, other than a loan under regulation 12, may be paid in respect of three periods of the academic year, and no instalment shall be paid in respect of the period during which, in the opinion of the Secretary of State, the longest of any vacations is taken.

(3) The Secretary of State may only pay loans for which a student has applied other than a loan under regulation 12 in the following instalments–

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

(b) if the first instalment is paid during the second period of the academic year it shall be paid in two instalment during the periods in respect of which it is payable, the first amounting to two thirds of the amount to be lent, and the second amounting to one third of the amount to be lent; and

(c) if the first instalment is paid during the third or fourth period of the academic year it shall be paid in one instalment.

(4) Payments may 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(5) Subject to regulation 7, no instalment shall be paid after an eligible student has withdrawn from, abandoned or been expelled from his course.

(6) No instalment shall be paid in respect of a period during any part of which an eligible student is absent from his course, unless in the opinion of the Secretary of State in all the circumstances it would be appropriate to pay all or part of the loan.

(7) In deciding whether it would be appropriate to pay all or part of the loan when an eligible student is absent from his course the circumstances which the Secretary of State shall have regard to 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 of loan 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) If the payment of instalments has been suspended and before the end of the academic year the eligible student commences attending his course again the Secretary of State may pay further instalments but so that the amount lent in relation to that year does not exceed such amount as the Secretary of State in all the circumstances considers appropriate.

(10) Where the Secretary of State has paid any instalment of loan, other than a loan under regulation 12, and the eligible student applies for an additional loan in respect of an academic year the Secretary of State may only pay 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 instalments 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 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 14.