The Education (Student Loans for Tuition Fees) (Scotland) Regulations 2006

Explanatory Note

This note is not part of the Regulations

These Regulations provide for loans for tuition fees for eligible students attending designated courses provided by an institution located in the UK but outside Scotland (“an RUK institution”). The Regulations apply to loans payable for an academic year starting on or after 1st September 2006 (regulation 3(2)(b)).

Students are eligible for the loan under these Regulations if they fall within one of the eligibility categories laid down in Schedule 1. The majority of eligible students will be eligible due to their ordinary residence in Scotland on the first day of the first academic year of the course if they are additionally settled in the United Kingdom for the purposes of the Immigration Act 1971 and have been ordinarily resident in the UK for 3 years preceding the first academic year of the course. (Schedule 1, paragraph 1).

However, subject to certain residence conditions, students may also be eligible if they are an EEA migrant worker or self-employed person, an EEA frontier worker or frontier self-employed person, a Swiss employed or self-employed person or a Swiss frontier worker or frontier self-employed person (Schedule 1, paragraph 2) and certain family members of such persons (Schedule 1, paragraph 3).

Additionally, a person who is settled in the United Kingdom and has exercised free movement rights in order to reside in the EEA and/or Switzerland may qualify for a loan if ordinarily resident in Scotland on the first day of the first academic year of the course (Schedule 1, paragraph 4).

Finally, the following categories of person may be eligible for a loan, subject to satisfying certain residence conditions; refugees, persons with rights to enter or remain in the UK, persons with temporary protection, EU nationals and children of Swiss nationals (Schedule 1, paragraphs 5, 6, 7, 8 and 9 respectively).

To be eligible students must also start their course on or after 1st September 2006 and not be gap year students, end-on course students (these are students who continue from one course on to another course where the first course can be seen as an integral part of the second course e.g. foundation degree courses leading on to a degree), or transferring students (i.e. students who have started an original course prior to 1st September 2006 and who are commencing a designated course after 1st September 2006 only as a result of transferring their course). In addition students must not be in breach of any obligation to repay any type of student loan, must not by their conduct be unfitted to receive a loan and must not already hold a first degree (regulation 3).

Courses which are designated courses for the purposes of these Regulations include full-time courses for a first degree, a Diploma of Higher Education, a Higher National Diploma or Higher National Certificate, the initial training of teachers or youth or community workers, certain professional examinations and certain other courses of education which are of a standard not higher than that of a first degree course. In each case such courses must be provided on a full-time or sandwich course basis, must be of at least one academic year’s duration and must be provided by an RUK institution which is maintained by public funds (regulation 4).

The Scottish Ministers may designate other courses (regulation 4(9)).

Students must apply for a loan in accordance with Regulation 5. The maximum amount of loan shall be the maximum amount of tuition fee charged to the student for the current academic year of a designated course which the student is undertaking (regulation 5(2)). As part of the application a student must make a declaration in relation to the information given to Scottish Ministers and their obligation to repay the loan (regulation 5(4)).

In certain circumstances a student who changes the course which they are studying can request that Scottish Ministers transfer their eligibility for a loan. However a student’s eligibility for a loan cannot be transferred after it has expired or been terminated and an application for a loan for tuition fees can only be made once in any one academic year (regulation 6).

An eligible student shall no longer be eligible for a loan in the following circumstances. When the period ordinarily required for the completion of the course expires (although Scottish Ministers can make exceptions under regulation 7(2)), where an eligible student withdraws from a course and does not transfer to another course, where an eligible student has abandoned or been expelled from a course and where the eligible student shows himself or herself to be unfitted to receive a loan due to conduct.

Students are under an obligation to provide specified information to Scottish Ministers (regulation 8).

Provision is made for interest which the loans will bear. In accordance with section 73B(6) and (7) of the Education (Scotland) Act 1980 the prescribed rate of interest is no higher than that which the Scottish Ministers are satisfied is required to maintain the value in real terms of the outstanding amount of loans and does not exceed the rate specified for the purposes of exemption of certain consumer credit agreements conferred by virtue of the Consumer Credit Act 1974 (regulation 11).

Student loans paid or payable after the commencement of the sequestration of a student’s estate shall not form part of his or her estate, and accordingly cannot be claimed by his trustee. The student will not be discharged from liability to repay loan repayments after a sequestration when he or she is discharged under or by virtue of section 54 or 75(4) of the Bankruptcy (Scotland) Act 1985 (regulation 12).