The Student Loans (Information Requests, Maximum Threshold, Maximum Repayment Levels and Hardship Loans) (Scotland) Regulations 2005

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Repayment of Student Loans (Scotland) Regulations 2000 (“the Repayment Regulations”) and the Education (Student Loans) (Scotland) Regulations 2000 (“the Loans Regulations”).

These Regulations require the provision of information to the Scottish Ministers by borrowers of student loans and the imposition of penalties upon failure to do so. They also increase the earnings threshold for repayment and remove all provisions on hardship loans.

Regulation 3 inserts a new series of regulations into the Repayment Regulations. The first of these, regulation 11A, creates a requirement that borrowers must inform the Scottish Ministers each time that their home address or name changes.

Regulation 11B provides that the Scottish Ministers may serve an Information Notice on a borrower requiring him or her to provide certain information. The borrower must comply with the Notice within 28 days of service.

Regulation 11C allows the Scottish Ministers to impose penalties on borrowers where they have failed to comply with a requirement to provide information, whether the loan is due for repayment or not. The Scottish Ministers must inform the borrower of the penalty by serving a Penalty Notice on him or her. The penalties are payments of £50 where the borrower has failed to comply with regulation 11A or 11B(4) and an additional penalty payment of £108 where the borrower has not complied with regulation 11C(2).

Regulation 11D sets out the circumstances where the Scottish Ministers may require the reimbursement of costs and expenses by a borrower.

Regulation 11E allows the Scottish Ministers to relax the Information Notice or Penalty Notice time limits contained in regulation 11B or regulation 11C where they consider it should be relaxed having regard to all the circumstances of the particular case.

Regulation 4 of the amending regulations amends the Repayment Regulations in order to raise the earning threshold for repayment from £10,000 to £15,000. This amendment applies to all borrowers regardless of the date that their liability to repay arose.

Regulation 5 of the amending regulations amends the instalment payment from £246 to £208.

Regulation 6 of the amending regulations amends the Loans Regulations by removing all provisions on hardship loans.

A Regulatory Impact Assessment has not been produced for this instrument as it has no impact on the costs to businesses or charities.