Education (Scotland) Act 1980

F1 73B Regulations relating to student loans. S

(1) This section applies in relation to regulations under paragraph (f) of section 73 of this Act made with respect to loans.

(2) Regulations to which this section applies may make provision requiring such amounts as may be prescribed, payable under loans granted by virtue of such regulations, to be paid directly to institutions providing courses of education who have previously made payments of any prescribed description to persons [F2 undertaking] such courses to whom such loans may be granted.

(3) Regulations to which this section applies may make such provision as the Secretary of State considers necessary or expedient in connection with the recovery of amounts due from borrowers under loans granted by virtue of such regulations, including provision for—

(a) imposing on employers, or (as the case may be) such other persons or bodies as may be prescribed, requirements with respect to—

(i) the making of deductions in respect of amounts so due (or, in any prescribed circumstances, amounts assessed in accordance with the regulations to be so due) from emoluments payable to borrowers,

(ii) the collection by other means of such amounts,

(iii) the transmission of amounts so deducted or collected to the Secretary of State in accordance with directions given by him;

(b) imposing on employers, or such other persons or bodies as may be prescribed, requirements with respect to the keeping and production of records for such purposes as may be prescribed;

(c) imposing on borrowers requirements with respect to—

(i) the provision of such information, and

(ii) the keeping and production of such documents and records,

relating to their income as may be prescribed;

(d) requiring the payment, by persons or bodies to whom the requirements imposed in pursuance of paragraphs (a) to (c) above apply, of—

(i) penalties in cases of non-compliance with, or otherwise framed by reference to, such requirements, and

(ii) interest in respect of periods when such penalties are due but unpaid;

(e) requiring the payment by borrowers, in respect of periods when amounts due under their loans are unpaid, of—

(i) interest (applied to such amounts at a rate calculated otherwise than in accordance with subsections (6) and (7) below), or

(ii) both such interest and one or more surcharges (together with further interest in respect of periods when such surcharges are due but unpaid);

(f) enabling the Secretary of State to require the reimbursement by borrowers of costs or expenses of any prescribed description incurred by him in connection with the recovery of unpaid amounts;

(g) applying or extending with or without modification, for purposes connected with the recovery of amounts under regulations to which this section applies, any of the provisions of the Taxes Acts or of [F3 “PAYE regulations”];

(h) determining the priority as between deductions falling to be made by virtue of paragraph (a)(i) above and deductions falling to be made from emoluments payable to borrowers by virtue of other enactments (whenever passed);

(i) modifying any enactment or instrument (whenever passed or made) so as to provide for the treatment, in connection with any calculation with respect to income (however defined), of amounts due from or payable to such persons under loans granted by virtue of regulations to which this section applies.

(4) In subsection (3) above—

(a) “employers” means persons who make payments of, or on account of, income assessable to income tax under Schedule E, and

(b) “the Taxes Acts” has the same meaning as in the M1 Taxes Management Act 1970.

(5) Regulations to which this section applies may make provision for the payment, in respect of amounts overpaid by borrowers, of interest at such rate, and calculated in such manner, as may be determined by the Secretary of State from time to time.

(6) A rate of interest, prescribed by regulations to which this section applies, to be borne by loans shall at no time exceed the rate for the time being specified for the purposes of any exemption conferred by virtue of section 16(5)(b) of the M2 Consumer Credit Act 1974 (exemption of certain consumer credit agreements by reference to the rate of the total charge for credit).

(7) Subject to subsection (6) above, regulations to which this section applies shall not prescribe a rate of interest to be borne by loans higher than that which the Secretary of State, having regard to such retail prices index as appears to him to be appropriate, is satisfied is required to maintain the value in real terms of the outstanding amounts of such loans.

(8) Regulations to which this section applies may make provision, for the purpose of calculating the interest to be borne by loans, for repayments by borrowers to be treated as having been made or received on such date or dates as may be prescribed.

(9) Regulations to which this section applies may prescribe requirements or other provisions which add to or otherwise modify, during the currency of a loan, requirements or other provisions (whether as to repayment or otherwise) which apply in relation to loans granted by virtue of such regulations.

(10) Regulations to which this section applies may make provision for a borrower not to be liable to make any repayment in respect of a loan—

(a) during such periods as may be prescribed from time to time, or

(b) in such circumstances as may be prescribed,

including provision for the cancellation of any further such liability of the borrower in any such circumstances.

(11) Regulations to which this section applies may make provision for appeals with respect to matters arising under such regulations (including provision for determining, or enabling the determination of, the procedure to be followed in connection with such appeals).

(12) Regulations to which this section applies may, in relation to a borrower’s discharge under or by virtue of section [F4 137, 138 or 140 of the Bankruptcy (Scotland) Act 2016], make provision for the treatment of any debt or liability to which a borrower is, or may become, subject in respect of sums received, or which he is entitled to receive, [F5 before, on or] after the date of his sequestration.

(13) Nothing in this section prejudices the generality of section 73(f) of this Act.

Textual Amendments

F1 Ss. 73A-73D inserted (16.7.1998) by 1998 c. 30, ss. 29(2), 46(3) (with s. 42(8))

F2 Word in s. 73B(2) substituted (3.5.2001) by 2001 asp 6, ss. 3(3), 5(2)

F3 Words in s. 73B(3)(g) substituted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 149(a) (with Sch. 7)

F4 Words in s. 73B(12) substituted (30.11.2016) by Bankruptcy (Scotland) Act 2016 (asp 21), s. 237(2), sch. 8 para. 8 (with ss. 232, 234(3), 235, 236); S.S.I. 2016/294, reg. 2

F5 Words in s. 73B(12) inserted (1.4.2008) by Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), ss. 34(1), 227(3) (with s. 223); S.S.I. 2008/115, art. 3(1)(a) (with arts. 4-6, 10, 15) (as amended: (23.2.2009) by S.S.I. 2009/67, art. 7; (31.1.2011) by S.S.I. 2011/31, art. 5(a); and (4.10.2014) by S.S.I. 2014/173, arts. 1(2), 3)

Marginal Citations

M1 1970 c. 9.

M2 1974 c. 39.