The Education (Student Loans) Regulations 1994

Deferment

11.—(1) Subject to the provisions of this regulation, a borrower shall be entitled to defer making repayments of his loan if he satisfies the loans administrator—

(a) that his gross income for the month preceding the month in which he applies for deferment does not exceed the product of £1,216 and the annual adjustment; and

(b) if the loans administrator so requires, that his gross average monthly income during the three months immediately following the month first referred to in sub-paragraph (a) will not or is unlikely to exceed that amount.

(2) For the purposes of paragraph (1) “the annual adjustment” means the average earnings index for March 1995 divided by the average earnings index for March 1994; and “the average earnings index” means the general index of average earnings (for all employees: whole economy: seasonally adjusted) published by the Department of Employment or, if that index is not published for a month for which it is relevant for the purposes of this regulation, any substituted index or index figures published by that Department.

(3) If a borrower falls within paragraph (1), he shall not be obliged to make repayments during a period of twelve months beginning with such date as may be determined by the loans administrator, being a date not more than twelve months earlier or two months later than the date on which the loans administrator notifies the borrower that it is satisfied that he is entitled to defer making repayments.

(4) Notwithstanding deferment a borrower may, after giving notice to the loans administrator, resume making repayments at any time before the end of the period of deferment.

(5) In determining whether a borrower’s gross monthly income exceeds, will exceed or is likely to exceed the amount specified in paragraph (1) no account shall be taken of any disability-related benefits paid or which will or are likely to be paid to him in the months in question.

(6) In paragraph (5) “disability-related benefits” means—

(a) the benefits or allowances payable pursuant to the Social Security Contributions and Benefits Act 1992(1) known as long term incapacity benefit(2), short term incapacity benefit payable at the higher rate(3), severe disablement allowance(4), disability living allowance(5) and industrial injuries benefit(6);

(b) where income support is payable to the borrower under the Income Support (General) Regulations 1987(7), the amount of any disability premium and severe disability premium included in the applicable amount in calculating the income support payable, which amount shall for the purposes of regulations 10(1) and 11(5) be considered to be…received,…paid or…likely to be paid, as the case may be; and

(c) disability working allowance payable under sections 123(1)(c) and 129 of the Social Security Contributions and Benefits Act 1992.

(7) Interest shall accrue on a loan and shall be added to the outstanding amount thereof during any period of deferment.

(1)

1992 c. 4, amended by the Social Security (Incapacity for Work) Act 1994 (c. 18), sections 1 to 3, 5 to 6, 8 to 11 and Schedules 1 and 2.

(2)

See section 30A(5).

(3)

See sections 30A(1) and 30B(2).

(4)

See section 63(b).

(5)

See section 63(d).

(6)

See section 94(1) and (2).

(7)

S.I. 1987/1967 (See Parts III and IV of Schedule 2); the relevant amending Regulations are S.I. 1988/1678 and 1991/2742.