PART 2U.K.Provisions Applicable to all Repayments

RefundsU.K.

20.—(1) Where the Authority has received a repayment either directly from the borrower or from HMRC under Part 4—

(a)which results in the student loan being repaid in full, or

(b)when the student loan has already been repaid in full,

the Authority must refund to the borrower any amount not required to repay the loan in full together with interest calculated as if it were the principal of a student loan outstanding from the date of receipt of the repayment to the date of the refund.

(2) Where the Authority is considered to have received a payment from HMRC under Part 3 in respect of a tax year –

(a)which results in the student loan being repaid in full, or

(b)when the student loan has already been repaid in full,

the repayment will be considered to have been received by the Authority on 31 January next following the tax year in accordance with regulation 17(b) and the Authority must refund to HMRC for the borrower’s account any overpayment which results from the receipt.

(3) A refund under paragraph (2) will not carry interest and HMRC will be considered to have received the refund on the date on which the amount refunded was considered to have been received by the Authority in accordance with regulation 17.

(4) Where the Authority has received a repayment by way of deduction from the borrower’s earnings for a tax year in accordance with Part 4 and those earnings do not exceed £15,000, the Authority must refund the amount deducted if the borrower applies for a refund.

(5) Where the Authority has received a voluntary payment not required under these Regulations in relation to the student loan of a borrower who is an eligible teacher after the date on which the borrower has commenced eligible employment or 1 September 2002 whichever is the later, the Authority may refund to the borrower—

(a)who is a full-time eligible teacher, an amount equal to that payment, or

(b)who is a part-time eligible teacher, an amount equal to the part of that payment which is not required to pay the student loan in full not including the proportion of the loan for which the teacher is eligible for a reduction under the Teachers’ Regulations.