Explanatory Note
(This note is not part of the Regulations)
These Regulations, which come into force on 1st August 1994, supersede the Education (Student Loans) Regulations 1993 which are revoked (regulation 2).
Provisions in these Regulations which differ from the corresponding provisions of the 1993 Regulations (except as a result of minor drafting or consequential changes) are indicated by the use of heavy type. Omissions are indicated by the use of dots. The changes of substance made by these Regulations, other than in the maximum amounts of loans and rates of interest, are described below.
The increase in the retail price index, which determines the rate of interest charged on loans, is required to be measured from March to March rather than June to June (regulation 7(4)).
It is provided that deferment of a loan may take effect not more than two months after the date on which the loans administrator notifies the borrower of his entitlement to deferment, rather than not more than one month after that date (regulation 11(3)). The definition of disability related benefits which are to be disregarded in determining a borrower’s income for the purpose of establishing entitlement to deferment of a loan has been amended (regulation 11(6)(b)). The amendment corrects references to disability premium and severe disability premium, but does not alter the benefits which are to be disregarded in determining a borrower’s income.
A new procedure for the certification of eligibility for loans where students have borrowed before is introduced (regulation 13(3)). The loans administrator will on request send an eligibility form containing information about a student directly to him, who will complete the form and submit it to the governing body of the institution he attends. They will verify information which the loans administrator has requested them to verify, and certify that the information is accurate to the best of their knowledge and belief. They will then send the certified eligibility form to the loans administrator. The student will receive an application form directly from the loans administrator, and make his application directly to it.
Particulars given in eligibility forms by persons born or adopted in Northern Ireland are required to be verified by reference to certificates of entries in the relevant registers in Northern Ireland (regulation 13(5)(a) and (b)).
Provision is made to reflect the fact that under the European Economic Area Agreement nationals of countries within the European Economic Area in addition to nationals of countries within the European Community are by the time these Regulations come into force expected to have rights arising under Council Regulation (EEC) 1612/68. In accordance with article 7(2) or (3) or 12 of that Regulation they may be entitled to loans under these Regulations. If necessary separate regulations amending the Education (Student Loans) Regulations 1993 will be made to give effect to the United Kingdom’s obligations under the European Economic Area Agreement for the period between the coming into force of that Agreement and the coming into force of these Regulations.