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The Repayment of Student Loans (Scotland) Amendment Regulations 2007

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Amendment of the Repayment of Student Loans (Scotland) Regulations 2000

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12.  After regulation 13, insert–

Repayment by income related instalments

13A.(1) Where the Scottish Ministers are satisfied that a borrower to whom regulation 12 applies has complied with a requirement to provide information under regulation 11, they may determine that the borrower may repay that borrower’s student loan by income related instalments, in accordance with this regulation.

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

(3) Each instalment shall be 1/12 of the relevant amount.

(4) The relevant amount shall be 9% of the gross income which the Scottish Ministers consider the borrower is likely to receive during the 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 the table in regulation 13B(2); and

(b)income in respect of which the Scottish Ministers are satisfied that repayments are likely to be made under Part III or IV of the Collection Regulations.

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

(6) At the end of the period for payment of instalments referred to in paragraph (2), the borrower shall pay fixed instalments under regulation 13, subject to a further determination under paragraph (1).

(7) At any time during the period for payment of instalments referred to in paragraph (2) the Scottish Ministers may make a re determination under paragraph (1).

Calculation of fixed instalment and applicable threshold

13B.(1) The fixed instalment mentioned in regulation 13 shall be determined by reference to the most recent price level index for the borrower’s country of residence and in accordance with the following table–

BandPrice Level IndexFixed Instalment
A0<30£49.20
B30<50£98.40
C50<70£147.60
D70<90£196.80
E90<110£246
F110<130£295.20
G130+£344.40

(2) The applicable threshold mentioned in regulation 13A shall be determined by reference to the most recent price level index for the borrower’s country of residence and in accordance with the following table–

BandPrice Level IndexApplicable Threshold
A0<30£3,000
B30<50£6,000
C50<70£9,000
D70<90£12,000
E90<110£15,000
F110<130£18,000
G130+£21,000

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

(4) Price level indices shall be calculated using the most recent provisional comparative price level indices for consumer goods and services (measured in terms of Purchasing Power Standard per capita) expressed in gross domestic product published by Eurostat.

(5) Where a price level index cannot be calculated because Eurostat does not publish the necessary data, it shall be calculated using the most recent provisional comparative price level indices equivalent to those referred to in paragraph (4), expressed in gross domestic product published by the World Bank as World Development Indicators.

(6) Where a price level index cannot be calculated under paragraph (4) or (5), the applicable fixed instalment and threshold shall respectively be those for Band A given in the tables in paragraphs (1) and (2).

(7) The Scottish Ministers may determine that the applicable fixed instalment and threshold for a borrower shall be that for a country other than that borrower’s country of residence..

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