The Education (Student Loans) (Repayment) Regulations 2009

PART 5 Repayment by Overseas Borrowers

Interpretation

71.  In this Part—

“gross income” means income from all sources before deductions for or relief from tax or other statutory charge;

“residence” in or outside the United Kingdom has the same meaning as it has in the Taxes Acts; and

“Eurostat” means the Statistical Office for the European Communities.

Notice of overseas residence

72.—(1) A borrower must notify the Authority of any period of residence outside the United Kingdom which exceeds 3 months.

(2) A borrower must provide such information about the borrower’s income during any such period of residence as the Authority may require.

Notice of liability to make repayments

73.—(1) Subject to regulation 75, where the Authority is satisfied that a borrower is resident outside the United Kingdom, it may serve a notice on the borrower requiring the borrower to make repayments on any student loan in accordance with regulation 74.

(2) In a notice served under paragraph (1), the Authority may require a borrower, if the borrower has failed—

(a) to give the notice required by regulation 72(1); or

(b) to provide any information required by the authority under regulation 72(2),

to repay immediately such part of a student loan as will reduce the amount outstanding to the amount which the Authority considers would have been outstanding if the borrower had given the notice or provided the information required.

Repayment by fixed instalments

74.  A borrower must pay to the Authority a fixed instalment calculated in accordance with regulation 76—

(a) no later than the day specified in a notice served under regulation 73; and

(b) no later than the same day of each subsequent month.

Repayment by income-related instalments

75.—(1) Where the Authority is satisfied that a borrower to whom regulation 73 applies has complied with a requirement to provide information under regulation 72, the Authority may determine that the borrower may repay a loan by income-related instalments in accordance with this regulation.

(2) The first such instalment must be paid on a date determined by the Authority being a date not more than 2 months later than the date of the determination and subsequent instalments must be paid on the same date in each subsequent month for up to 12 months.

(3) Each instalment must be one twelfth of the relevant amount.

(4) The relevant amount is 9% of the gross income which the Authority consider the borrower is likely to receive in the next 12 month period following the date of the determination referred to in paragraph (2), disregarding—

(a) income up to the applicable threshold, calculated in accordance with regulation 76; and

(b) income in respect of which the Authority is satisfied that repayments are likely to be made under Parts 3 or 4.

(5) The amount of the instalment must be stated in the determination.

(6) At the end of the period referred to in paragraph (2), the borrower must pay fixed instalments under regulation 74, subject to a further determination under paragraph (1).

(7) At any time during the period referred to in paragraph (2), the Authority may make a re-determination under paragraph (1).

Calculation of fixed instalment and applicable threshold

76.—(1) The fixed instalment in regulation 74 and the applicable threshold in regulation 75 are to be determined by reference to the most recent price level index for the borrower’s country of residence and in accordance with the following tables—

Band	Price Level Index	Fixed Instalment
A	0<30	£49.20
B	30<50	£98.40
C	50<70	£147.60
D	70<90	£196.80
E	90<110	£246
F	110<130	£295.20
G	130+	£344.40
Band	Price Level Index	Applicable Threshold
A	0<30	£3000
B	30<50	£6000
C	50<70	£9000
D	70<90	£12000
E	90<110	£15000
F	110<130	£18000
G	130+	£21000

(2) The price level index for the United Kingdom is 100.

(3) Price level indices are to be calculated using the most recent provisional comparative price level indices measured in gross domestic product produced by Eurostat.

(4) Where the price level index for any country cannot be calculated because Eurostat does not hold the necessary data, it is to be calculated using the most recent provisional comparative price level indices measured in gross domestic product produced by the World Bank’s Development Indicators.

(5) Subject to paragraph (6), where a price level index cannot be calculated under paragraph (3) or (4), the applicable threshold and fixed instalment are those for band A.

(6) The Authority may determine that the applicable threshold or fixed instalment for a borrower is to be that for a country other than the borrower’s present country of residence.

Application to cease repayment by instalments

77.—(1) A borrower who—

(a) is required to make repayments under this Part; and

(b) who has not been required to repay a student loan in full immediately under regulation 78,

may apply to the Authority for a determination that the borrower is no longer required to make such repayments.

(2) Where the Authority is satisfied that—

(a) the borrower is resident in the United Kingdom; and

(b) the borrower is likely to be resident in the United Kingdom for the tax year during which the date specified in the determination relating to that borrower will fall,

the Authority may determine that a borrower who has applied under paragraph (1) is not to be required to make repayments under this Part from a date specified in the determination, being a date not more than 2 months later than the date of the determination.

(3) A determination under paragraph (2) has effect until the borrower again becomes liable to repay the loan under regulation 74 or 75.

Foreclosure

78.  If a borrower does not pay an instalment or other amount when it is due, the Authority may require the borrower to repay the loan in full immediately.

Costs and expenses of the Authority

79.—(1) Where the Authority incurs reasonable costs or expenses in taking steps—

(a) resulting from a borrower’s failure to comply with regulation 72, to

(i) obtain a borrower’s address outside the United Kingdom; or

(ii) obtain information about a borrower’s income during any period of residence outside the United Kingdom;

(b) to serve a notice under regulation 73(1) in any of the circumstances set out in regulation 73(2); or

(c) to recover the outstanding balance of the loan in full under regulation 78,

the Authority may require reimbursement of those costs or expenses by the borrower and may add them to the borrower’s loan account and they will form part of the principal of the loan from the date on which they are added.

(2) Where the Authority incurs such costs and expenses as are referred to in paragraphs (1)(a) to (c) in respect of a transferred loan, the Authority is entitled to recover such costs as are incurred on behalf of the loan purchaser and may add them to the borrower’s loan account.

(3) Any sum added to the borrower’s loan account in accordance with paragraph (2) is owed to the loan purchaser.