Education (Student Loans) (Repayment) Regulations 2000

Repayment by instalments

56.—(1) Subject to paragraph (2) a borrower shall not later than the day specified in a notice served under regulation 55 and on the same day of each subsequent month pay the Secretary of State an instalment of £246.

(2) Instead of paying the monthly instalment referred to in paragraph (1) a borrower shall be entitled to pay monthly instalments determined by the Secretary of State under paragraph (3) in respect of the twelve months referred to in the determination.

(3) On application by a borrower the Secretary of State may determine that the amount of each of the twelve monthly instalments beginning with such date as may be determined by the Secretary of State, being a date not more than three months earlier or two months later than the date of the determination, shall be one twelfth of the relevant amount.

(4) The relevant amount shall be 9% of the gross income which the Secretary of State considers that the borrower is likely to receive during the twelve month period in respect of which the instalments will be paid, disregarding–

(a) the first £10,000 of such income; and

(b) income in respect of which the Secretary of State is satisfied that repayments are likely to be made under Part III or IV.

(5) After the expiry of the twelve months referred to in a determination under paragraph (3) the borrower shall pay instalments in accordance with paragraph (1), subject to any further determination under paragraph (3).

(6) If a borrower does not pay an instalment or other amount when it is due the Secretary of State may require him to repay his student loan in full immediately.

(7) The Secretary of State may allow a borrower to pay an instalment late or to fail to pay all or part of an instalment, but such indulgence shall not affect any rights or duties in relation to any other instalment.