7. In pursuance of section 1(1) of the Education Act 1962 it shall be the duty of an authority, subject to the conditions and exceptions hereinafter provided, to bestow—
(a)a full award in respect of a person’s attendance at a designated course within the meaning of these Regulations during an academic year beginning after 31st August 1998 if—
(i)the person concerned is ordinarily resident in the authority’s area within the meaning of section 1 of the said Act of 1962 and Schedule 1 thereto, read with these Regulations, and
(ii)the duty is not owed to the person only because he is a European student;
(b)where paragraph (a) does not apply, a fees only award in respect of a person’s attendance at a designated course at an institution in England or Wales during an academic year beginning after the 31st August 1998 if the person is a European student and the institution at which he attends his course is within the area of the authority.