EDUCATION, ENGLAND AND WALES PART I GENERAL Citation and commencement 1 These Regulations may be cited as the Education (Student Support) Regulations 1999 and shall come into force one week after the date on which they are made. Interpretation 2 1 In these Regulations, except where the context otherwise requires– “the 1962 Act ” means the Education Act 1962 ; “the 1998 Regulations ” means the Education (Student Support) Regulations 1998 ; “academic authority” means, in relation to an institution, the governing body, or other body having the functions of a governing body and includes a person acting with the authority of that body; “academic year” has the meaning given it in paragraph (6); “accelerated course” means a course which persons undertaking it are normally required by the institution providing it to attend (whether at premises of the institution or elsewhere) for a period of at least 40 weeks in the final year, being a course of two academic years' duration; “ the Act ” means the Teaching and Higher Education Act 1998; “award” means an award under the 1962 Act; “borrower” means a person to whom a loan has been made; “contribution” means an eligible student’s contribution calculated pursuant to regulation 21 and Schedule 3; “designated course” means a course designated by regulation 5 or by the Secretary of State under regulation 5; “disability related benefit” means long term incapacity benefit or short term incapacity benefit at the higher rate, severe disablement allowance, disability living allowance, industrial injuries benefit and disability working allowance, all payable under the Social Security Contributions and Benefits Act 1992 , or the amount of any disability premium and severe disability premium included in the applicable amount in calculating the income support payable under the Income Support (General) Regulations 1987 ; “ EEA Agreement ” means the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 as adjusted by the Protocol signed at Brussels on 17th March 1993 ; “ EEA migrant worker” has the meaning assigned to it in paragraph (5); “eligible student” means a person whom the Secretary of State has determined is eligible for support in connection with his attendance at a course in accordance with regulation 6 or 7; “ European Community ” means the territory comprised by the member States of the European Community as constituted from time to time; “European Economic Area” means the European Community and subject to the conditions laid down in the EEA Agreement the area comprised by the Republic of Iceland, the Kingdom of Norway and the Principality of Liechtenstein; “high cost country” means Australia, Austria, Belgium, Finland, France, Germany, Iceland, Indonesia, Eire, Israel, Italy, Luxembourg, the Netherlands, New Zealand, countries of the former Soviet Union, United States of America; “higher cost country” means Denmark, Hong Kong, Japan, Republic of Korea, Norway, Sweden, Switzerland, Taiwan; “higher education course” means a course referred to in Schedule 2 or a postgraduate or other course the standard of which is higher than the standard of a first degree course; “ the Islands ” means the Channel Islands and the Isle of Man; “loan” means a loan towards a student’s maintenance pursuant to any regulations made under section 22 of the Act, including the interest accrued on the loan and any penalties or charges made in connection with it; “lone parent” means an eligible student who does not ordinarily live with a spouse or with another person as a spouse, and who has a dependant or dependants within the meaning of regulation 15(10); “Metropolitan Police District” means the areas referred to in section 76 of the London Government Act 1963 disregarding any amendment after these Regulations are made; “old award” means an award under section 1(1) of the 1962 Act which is an old award within the meaning of the Education (Mandatory Awards) Regulations 1998 or an award under section 1(6) of that Act which is an old award for the purposes of those Regulations as applied to such awards by virtue of section 1(7) of that Act; “periods of work experience” has the meaning given it in regulation 5(4); “public funds” means moneys provided by Parliament; “quarter”, in relation to an academic year, means one of the periods in that year from 1st January to 31st March, 1st April to 30th June, 1st July to 31st August, or 1st September to 31st December; “refugee” means a person who is recognised by Her Majesty’s government as a refugee within the meaning of the United Nations Convention relating to the Status of Refugees done at Geneva on 28th July 1951 as extended by the Protocol thereto which entered into force on 4th October 1967 and any reference to the child of a refugee includes a reference to a step-child; “responsible person” means a consular officer, minister of religion, medical or legal practitioner, established civil servant, teacher or police officer; “sandwich course” has the meaning given it in regulation 5(3); “statutory award” means any award bestowed, grant paid or other support provided by virtue of the Act or the 1962 Act, or any comparable award, grant or other support in respect of attendance at a course which is paid out of public funds; “student loan account number” means the account number assigned by the lender to a loan made under the Act, the Education (Student Loans) Act 1990 , the Education (Student Loans) (Northern Ireland) Order 1990 , the Education (Scotland) Act 1980 or the Education (Student Support) (Northern Ireland) Order 1998 ; “support” means financial support by way of grant or loan made by the Secretary of State pursuant to regulations made under section 22 of the Act; “transitional award” means an award under section 1(1) of the 1962 Act which is a transitional award within the meaning of the Education (Mandatory Awards) Regulations 1998 or an award under section 1(6) of that Act which is a transitional award for the purposes of those Regulations as applied to such awards by virtue of section 1(7) of that Act; 2 For the purposes of these Regulations a person who is ordinarily resident in England and Wales, Scotland, Northern Ireland, the Channel Islands or the Isle of Man as a result of having moved from another of those areas for the purpose of attending– a his current course, or b a previous designated course which, disregarding any intervening vacation, the student was attending immediately before attending his current course shall be considered to be ordinarily resident in the place from which he moved. 3 For the purposes of these Regulations, including for the purpose of determining whether a person is settled in the United Kingdom within the meaning of the Immigration Act 1971 for the purposes of these Regulations, a person shall be treated as ordinarily resident in England and Wales, the United Kingdom, the United Kingdom and Islands or in the European Economic Area if he would have been so resident but for the fact that he, his spouse or his parent, guardian or any other person having parental responsibility for him, or any person having care of him when he is a child is, or was temporarily employed outside the United Kingdom, the United Kingdom and Islands, or as the case may be, outside the European Economic Area and paragraph 8(c) of Schedule 1 shall not apply in the case of such a person. 4 For the purposes of the Regulations an area which– a was previously not part of the European Community or the European Economic Area, but b at any time before or after these Regulations come into force has become part of one or other or both of those areas shall be considered to have always been part of the European Economic Area. 5 In these Regulations a reference to an EEA migrant worker is a reference to a person who is a national of a member State of the European Economic Area who has taken up an activity as an employed person in the United Kingdom– a under Council Regulation ( EEC ) No. 1612/68 on freedom of movement of workers within the Community , as extended by the EEA Agreement; or b in circumstances where as a national of the United Kingdom he has an enforceable Community right to be treated no less favourably than a national of another member State in relation to matters which are the subject of the above mentioned Council Regulation. 6 In these Regulations “academic year” means the period of twelve months beginning on 1st January, 1st April, 1st July or 1st September, according as the academic year of the course in question begins in the winter, the spring, the summer or the autumn respectively, but if students are required to begin attending the course during August or September and to continue attending through the autumn the academic year of the course shall be considered to begin in the autumn rather than the summer. Revocations and transitional provisions 3 1 The 1998 Regulations shall be revoked on 1st September 1999. 2 The 1998 Regulations shall apply to the making of loans to students in relation to an academic year which begins before 1st September 1999, and these Regulations shall apply in relation to the provision of support in connection with attendance at a course during an academic year which begins on or after 1st September 1999, whether anything done under either Regulations is done before or after 1st September 1999. 3 Accordingly the revocation of the 1998 Regulations shall not affect their continued operation after 1st September 1999 for the purpose of making loans as aforesaid. 4 If the first academic year of a course began before 1st September 1999 the requirement in regulation 6(2) that an application form be received not later than four months after the beginning of the course shall be treated as a requirement that it be received not later than sixteen months after the beginning of the course. 5 Where the Secretary of State is satisfied that the certificate or the passport and supporting letter required to be produced by regulation 6(4) were produced by the applicant in support of an application for– a a transitional award which was bestowed on him, or b a loan under the 1998 Regulations which he received that requirement shall not apply. 6 Notwithstanding any other provision of these Regulations where– a a person attends a course in respect of which a transitional award was bestowed on him, or b no award was bestowed but a transitional award would have been bestowed on him if he had applied for an award and his resources had not exceeded his requirements, he shall be eligible for support by way of grant under Parts III and IV in connection with his attendance at the course, or in connection with his attendance at any subsequent course to which the award (either bestowed or which would have been bestowed) would have been transferred if transitional awards provided for payments after the first year of a course, but unless paragraph (7) applies he shall only be eligible for support by way of loan under Part V if he satisfies the conditions for eligibility in these Regulations. 7 Notwithstanding any other provision of these Regulations where any person received or was eligible to receive a loan in relation to an academic year of a course under the 1998 Regulations he shall be eligible for support by way of loan under Part V in connection with his attendance at the course, or any subsequent designated course which (disregarding any intervening vacation) he starts attending immediately after ceasing to attend that course, but unless paragraph (6) applies he shall only be eligible for support by way of grant under Parts III and IV if he satisfies the conditions for eligibility in these Regulations. 8 If the eligibility of a person mentioned in paragraph (6) is transferred under regulation 7 regulation 10(9) shall apply but only where the necessary recommendation or consent to the transfer is given later than four months after the end of the first academic year of the course. 9 Where under the 1998 Regulations a person received or was eligible to receive a loan in relation to an academic year of a part-time course of initial training for teachers he shall be eligible for support by way of loan under Part V calculated in accordance with these Regulations, except that where regulation 12(3)(b) applies regulation 18(12) shall not apply, and for the amounts referred to in regulation 18(1) and (2) there shall be substituted for the amounts in column one the corresponding amounts in column two: £2,875 £2,385 4,480 3,225 4,440 3,195 5,275 3,800 3,635 2,805 2,510 2,020 3,885 2,630 3,865 2,615 4,590 3,105 3,150 2,320 10 Regulations 11 to 14 of the 1998 Regulations shall apply to loans made under the 1998 Regulations or under these Regulations until 1st September 1999, and Part VIII of these Regulations shall apply to such loans on and after 1st September 1999. PART II ELIGIBILITY Eligible students 4 1 Subject to and in accordance with these Regulations a person shall be eligible for support in connection with his attendance at a designated course if he is a person mentioned in Schedule 1. 2 A person shall not be eligible under this regulation if: a an award bestowed on him in respect of his attendance on the course is an old award or where no award was bestowed an award would have been an old award if it had been bestowed; b he is eligible for a loan in relation to an academic year of the course under the Education (Student Loans) Act 1990 or the Education (Student Loans) (Northern Ireland) Order 1990; c there has been bestowed on him or paid to him in relation to his attendance on the course– i a bursary or award of similar description under section 63 of the Health Services and Public Health Act 1968 the amount of which is not calculated by reference to his income; or ii any allowance under the Nursing and Midwifery Student Allowances (Scotland) Regulations 1992 ; d he is in breach of any obligation to repay any loan; e he has not ratified any agreement for a loan made with him when he was under the age of 18; or f he has, in the opinion of the Secretary of State, shown himself by his conduct to be unfitted to receive support. 3 For the purposes of paragraph (2)(d) and (e) “loan” means a loan made under the Education (Student Loans) Act 1990, the Education (Student Loans) (Northern Ireland) Order 1990, the Education (Scotland) Act 1980 and regulations made thereunder, the Education (Student Support) (Northern Ireland) Order 1998 and regulations made thereunder, or the Act and regulations made thereunder. 4 Paragraph (2)(e) shall only apply in a case where the agreement for a loan is subject to the law of Scotland if it was made– a before 25th September 1991, and b with the concurrence of the borrower’s curator, or at a time when he had no curator. Designated courses 5 1 A course shall be designated for the purposes of section 22(1) of the Act and regulation 4 if it is– a mentioned in Schedule 2; b either a full-time course or a part-time course for the initial training of teachers; c of at least one academic year’s duration; and d wholly provided by an educational institution or institutions in the United Kingdom which are maintained or assisted by recurrent grants out of public funds or is provided by such an institution or institutions in conjunction with an institution or institutions outside the United Kingdom. 2 A full-time course is a sandwich course or a course– a which persons undertaking it are normally required by the institution providing it to attend (whether at premises of the institution or elsewhere)– i in the case of a course of one academic year’s duration, for a period of at least 24 weeks; and ii in the case of a course of two or more academic years' duration, for a period of at least 24 weeks in each academic year except the final year and of at least eight weeks in the final year; and b the nature of which is such that a person undertaking it would normally require to undertake periods of study, tuition or work experience which together amount in each academic year to an average of at least 21 hours a week as respects the periods of attendance mentioned in sub-paragraph (a) for the year. 3 For the purposes of these Regulations a sandwich course is a course other than a course for the initial training of teachers referred to in paragraph 4 of Schedule 2 consisting of alternate periods of full-time study in an institution and periods of work experience so organised that, taking the course as a whole, the student attends the periods of full-time study for an average of not less than 19 weeks in each year; and for the purposes of calculating his attendance the course shall be treated as beginning with the first period of full-time study and ending with the last such period. 4 For the purposes of these Regulations “periods of work experience” means– a periods of industrial, professional or commercial experience associated with full-time study at an institution but at a place outside the institution, and b in the case of a course which includes the study of one or more modern languages for not less than one half of the time spent studying on the course and which includes periods of residence in a country whose language is a language of the course, such periods of residence during which the student is employed. 5 For the purposes of these Regulations a course is provided by an institution if it provides the teaching and supervision which comprise the course, whether or not it has entered an agreement with the student to provide the course. 6 For the purposes of paragraph (1) a university and any constituent college or institution in the nature of a college of a university shall be regarded as maintained or assisted by recurrent grants out of public funds if either the university or the constituent college or institution is so maintained or assisted. 7 For the purposes of paragraph (1) an institution shall not be regarded as maintained or assisted by recurrent grants out of public funds by reason only that it receives public funds from the governing body of a higher education institution in accordance with section 65(3A) of the Further and Higher Education Act 1992 . 8 For the purposes of these Regulations a course the standard of which is not higher than a first degree course which leads to a qualification as a medical doctor, a dentist, a veterinary doctor, an architect, a landscape architect, a landscape designer, a landscape manager, a town planner or a town and country planner shall be considered to be a single course for a first degree or for an equivalent qualification notwithstanding that the course may lead to another degree or qualification being conferred before the degree or equivalent qualification, and notwithstanding that part of the course may be optional. 9 For the purposes of section 22 of the Act and regulation 4(1) the Secretary of State may designate courses of higher education which are not designated under paragraph (1). Applications for financial support 6 1 A person shall apply for support in connection with his attendance on a course by completing and submitting to the Secretary of State an application in such form as he may require, but which shall include a declaration signed by the student that: a the particulars given in the form are correct to the best of his knowledge and belief; b he will notify the Secretary of State (or if a local education authority is exercising functions in relation to his application by virtue of a determination under section 23(1)(a) of the Act he will notify them) of any change in them which might affect his eligibility for support; and c he will if required to do so repay to the Secretary of State any amount paid to him which for whatever reason exceeds the amount of support to which he is entitled under these Regulations. 2 The application form must reach the Secretary of State not later than four months after the first day of the course, but where– a the course becomes a designated course after the first day of the course, the application must reach the Secretary of State not later than four months after the date on which the course was designated; b the student, or his spouse or parent, is recognised as a refugee or has been granted leave to enter or remain as mentioned in paragraph 3 of Schedule 1 after the first day of the course, the application must reach the Secretary of State not later than four months after the date of recognition or the date leave was granted respectively; c the student is not a student mentioned in paragraph 7 of Schedule 1 on the first day of the course but as a result of the accession of the State of which he is a national to the European Community he becomes such a student, the application must reach the Secretary of State not later than four months after the date of the accession; d the Secretary of State considers that having regard to the circumstances of the particular case the time limit should be relaxed, the application must reach the Secretary of State not later than such date as he specifies. 3 An applicant shall demonstrate his eligibility for support by providing such evidence as the Secretary of State may require. 4 Without restricting the generality of paragraph (3) an applicant shall produce: a if he was born in the United Kingdom, a certificate issued by the appropriate authority showing the place and date of his birth; or b if he was born outside the United Kingdom, a valid passport, unless he is a refugee or does not hold one, and in any event a letter or other document issued by a responsible person which contains particulars of his date, place and country of birth and his full name on birth. 5 The Secretary of State may take such steps and make such inquiries as he considers necessary to determine whether the applicant is eligible for support. 6 If the Secretary of State considers that an applicant is eligible for support he shall notify him of that fact, and thenceforth the student shall be an “eligible student” for the purposes of these Regulations. 7 An eligible student shall demonstrate his eligibility for a particular grant or loan under these Regulations, and the amount of such grant or loan to which he is entitled, by providing such evidence as the Secretary of State may require; and the Secretary of State may take such steps and make such inquiries as he considers necessary to determine whether the eligible student is eligible for a particular grant or loan and the amount to which he is entitled. 8 If the Secretary of State considers that an eligible student is eligible for a particular grant or loan he shall notify him of that fact and the amount to which the Secretary of State considers he is entitled. Transfers of eligibility 7 1 An eligible student may request that the Secretary of State transfer his eligibility in any case where– a on the recommendation of the academic authority the eligible student starts to attend another course at the institution; b with the written consent of the academic authorities of both institutions concerned, given on educational grounds, the eligible student starts to attend a course at another institution; c after commencing a course for the Certificate in Education, the eligible student is, on or before the completion of that course, admitted to a course for the degree of Bachelor of Education; d after commencing a course for the degree (other than an honours degree) of Bachelor of Education the eligible student is, on or before the completion of that course, admitted to a course for the honours degree of Bachelor of Education; or e after commencing a course for a first degree (other than an honours degree) the eligible student is, before the completion of that course, admitted to a course for an honours degree in the same subject or subjects at the institution. 2 Subject to paragraph (3) the Secretary of State, on being satisfied of the matters referred to in paragraph (1) and that the second course is a designated course, shall transfer the eligible student’s eligibility, and thenceforth the eligible student shall for all purposes be an eligible student in connection with his attendance at the second course, whether or not he may have been eligible for support if he had applied under regulation 6. 3 The Secretary of State may, after consulting the academic authority concerned, refuse to transfer eligibility where paragraph (1)(a) or (b) apply if he is satisfied that when the student applied for support he did not intend to complete the course to which his application related. 4 For the purposes of the duty of the Secretary of State to transfer eligibility where paragraph (1)(c) or (d) apply it shall be immaterial whether or not the two courses are provided by the same institution. 5 An eligible student’s eligibility for support may not be transferred after it has expired or been terminated under regulation 8. Termination of eligibility 8 1 Subject to paragraph (2) an eligible student shall cease to be eligible for support on the expiry of the period ordinarily required for the completion of the course, and accordingly he shall then cease to be an eligible student. 2 The Secretary of State may before or after an eligible student ceases to be an eligible student under paragraph (1) determine that he shall continue to be eligible for support for such further period after the expiry of the period referred to in that paragraph as he specifies, and accordingly he shall be or be considered to have been an eligible student throughout that period until its expiry. 3 Where an eligible student has withdrawn from a course in circumstances where the Secretary of State has not transferred or will not transfer his eligibility to another course under regulation 7, or has abandoned or been expelled from his course, the Secretary of State shall determine that he is no longer eligible for support, and on such determination he shall then cease to be an eligible student. 4 Where an eligible student has shown himself by his conduct to be unfitted to receive support the Secretary of State may determine that he is no longer eligible for support, and on such determination he shall then cease to be an eligible student. Information 9 1 Every applicant and every eligible student shall as soon as reasonably practicable after he is requested to do so provide the Secretary of State with such information as the Secretary of State considers necessary for the exercise of his functions under these Regulations. 2 Every applicant and every eligible student shall forthwith inform the Secretary of State if any of the following occurs, and provide him with particulars– a he withdraws from, abandons or is expelled from his course; b he transfers to another course, at the same or a different institution, whether or not the new course is a designated course; c he ceases to attend his course and does not intend to or is not permitted to return for the remainder of the academic year; d he is absent from his course for more than 60 days due to illness, or is absent from his course for any period for any other reason; e the month for the start or completion of the course changes; f his home or term time address or telephone number changes. 3 If the Secretary of State is satisfied that an eligible student has wilfully failed to comply with any requirement to provide information or has provided information which the student knows to be false in a material particular or has recklessly provided information which is false in a material particular he may determine that the student shall– a no longer be eligible for any support, or b not be eligible for any particular support or particular amount of support as he considers appropriate in the circumstances. PART III GRANTS FOR FEES Eligibility for grants for fees 10 1 Subject to the following paragraphs and regulation 11 an eligible student shall in respect of each academic year be eligible for a grant for fees equal to the aggregate of any fees payable by him in respect of, or otherwise in connection with, his attendance on the course (“the present course”), including admission, registration, tuition and graduation fees, but excluding– a fees payable to an institution for awarding or accrediting any qualification where the institution does not provide the whole or part of the course and is not a publicly-funded institution; b fees payable for board and lodging; c fees payable for field trips (including any tuition element of such fees); and d fees payable for attending any graduation or other ceremony. 2 Subject to paragraph (3) an eligible student shall not be eligible for a grant under this regulation if he has previously attended any full-time higher education course provided by an institution in the United Kingdom (“the previous course”): a which was at or before the time the course was provided maintained or assisted by recurrent grants out of public funds; or b in respect of his attendance at which a scholarship, exhibition, bursary, grant, allowance, or award of any description which was available to defray fees mentioned in paragraph (1) was paid out of public funds or funds attributable to public funds, by any person or body, public or private. 3 For the purposes of this regulation a course is not a previous course if it is– a the present course, or b any course in connection with his attendance at which he was determined to be eligible for support and that eligibility was transferred as a result of one or more transfers under regulation 7 to the present course. 4 Paragraph (2) shall not apply where: a the present course is a course for the initial training of teachers referred to in paragraph 4 of Schedule 2 the duration of which does not exceed two years (a part-time course being treated as its full-time equivalent) and the eligible student has not previously attended a course referred to in paragraph (2) the successful completion of which results in the person completing it being a qualified teacher within the meaning of section 218(2)(a) of the Education Reform Act 1988 ; or b the eligible student has previously attended– i only one course referred to in paragraph (2), and ii the period of attendance for that course did not exceed one academic year; or c the aggregate duration of the previous course or courses did not exceed two academic years. 5 Where paragraph (4)(c) applies the Secretary of State may determine that the eligible student shall not be eligible for grant for fees in respect of any academic year of the present course other than– a a year which is the only year of the course; b the final year of a course of two or three years' duration; or c the number of final years of a course which is two years less than its duration. 6 In this regulation any reference to the duration of a course is a reference to the period ordinarily required for its completion by a student who is not excused part of the course on account of his having attended a previous course, in the case of a sandwich course ignoring periods of experience; but for the purposes of paragraph (4)(c) if a student with the consent of the academic authority or authorities concerned– a ceases to attend one course without completing it, and b starts to attend another course at the same or another institution the duration of the course shall be treated as the aggregate of the period spent following the first course and the period which the student in question would ordinarily require for the completion of the second course, in the case of either course being a sandwich course ignoring any periods of experience. 7 An eligible student shall not be eligible for a grant for fees in respect of an academic year if– a in relation to that year he is eligible to receive any payment under a bursary or award of similar description bestowed on him under section 63 of the Health Services and Public Health Act 1968 the amount of which is calculated by reference to his income; or b he is participating in the action scheme of the European Community for the mobility of university students known as ERASMUS and– i his course is a course referred to in regulation 5(1)(d), and ii all the periods of study during the academic year are at an institution outside the United Kingdom. 8 Where an eligible student repeats– a the first year or part of the first year of his course more than once, or b any part of his course other than the first year or part of the first year of his course the Secretary of State may determine that he shall not be eligible for grant for fees in respect of the academic year during which the student repeats. 9 Where the eligibility of an eligible student is transferred under regulation 7(1)(a) or (b) and– a the necessary recommendation or consent to the transfer is given after the first day on which students were ordinarily required to start attending the second academic year of the course which the student originally attended (“the first course”), b the Secretary of State is satisfied after consulting the academic authority or authorities concerned that the recommendation or consent was given after the expiry of the period mentioned not only because the student was required to apply through a clearing admission system, and c the Secretary of State is satisfied after consulting the academic authority or authorities concerned that the period from the beginning of the first academic year of the first course to the end of the final academic year of the course which he now attends (“the second course”) exceeds the duration of the first course or the second course, whichever is the longer, the student shall not be eligible for grant for fees in respect of the number of academic years which is the difference between the above mentioned period and the above mentioned duration. 10 For the purposes of paragraph (9)– a the final academic year of the second course shall be the academic year during which the student is expected to complete the course, b in determining the period referred to in that paragraph there shall be included vacations, but not periods of experience which form part of a sandwich course, c the duration of a course shall be the period ordinarily required for its completion by a student who is not excused part of the course on account of his having attended a previous course, in the case of a sandwich course ignoring periods of experience, and d a difference which is less than a whole academic year shall be treated as a whole academic year. 11 The academic years in respect of which the eligible student shall not be eligible for grant for fees in accordance with paragraph (9) shall be the first academic year or years of the second course which the student attends. 12 An eligible student shall be eligible for a grant for fees in respect of– a any academic year before the expiry of three months from the beginning of which– i his course becomes a designated course, ii he or his spouse or parent is recognised as a refugee or is granted leave to enter or remain as mentioned in paragraph 3 of Schedule 1, or iii he becomes a student mentioned in paragraph 7 of Schedule 1 as a result of the accession of the State of which he is a national to the European Community; and b any academic year which begins after the events referred to in paragraph (a) but shall not be eligible for a grant for fees in respect of any other academic year. Maximum amounts of grants 11 The amount of grant for fees in respect of an academic year shall not exceed: a in the case of a course not covered by any other paragraph, £1,025, but where the final year of the course is ordinarily required to be completed after less than 15 weeks' attendance, £510; b in the case of a course at an institution which is neither maintained nor assisted by recurrent grants out of public funds, £960; c where during the academic year of a sandwich course any periods of full-time study are in aggregate less than 10 weeks, £510; d where during the academic year of a course for the initial training of teachers referred to in paragraph 4 of Schedule 2 any periods of full-time study are in aggregate less than 10 weeks, £510; e where during the academic year of a course provided in conjunction with an overseas institution the periods of full-time study at the institution in the United Kingdom are in aggregate less than 10 weeks, £510; f in the case of a sandwich course or a course provided in conjunction with an overseas institution where the periods of full-time study at the institution in the United Kingdom are 10 weeks or more, but in respect of the academic year and any previous academic years the aggregate of any one or two periods of attendance which are not periods of full-time study at the institution (disregarding intervening vacations) exceeds 30 weeks, £510. PART IV GRANTS FOR LIVING COSTS Eligibility for grants for living costs 12 1 Subject to and in accordance with the following regulations an eligible student shall be eligible for grant for living costs under this Part if he is: a under the age of 50 on the first day of the first academic year of the course; or b aged 50 or over and under the age of 55 on that day, if the Secretary of State is satisfied that he intends to enter employment after he has completed his course. 2 An eligible student shall not be eligible for grant for living costs under this Part if he is a person mentioned in paragraph 7 of Schedule 1 and not in any other paragraph of that Schedule. 3 An eligible student shall not be eligible for grant for living costs under this Part in respect of any academic year– a during which he is eligible to receive any payment under a bursary or award of similar description bestowed on him under section 63 of the Health Services and Public Health Act 1968 the amount of which is calculated by reference to his income; or b of a course for the initial training of teachers referred to in paragraph 4 of Schedule 2 during which the periods of full-time attendance, including attendance for the purpose of teaching practice, are in aggregate less than 6 weeks. 4 With the exception of grant under regulation 14 an eligible student shall not be eligible for grant for living costs under this Part in respect of any academic year of a sandwich course during which the periods of full-time study are in aggregate less than 10 weeks and the periods of experience are not– a unpaid service in a hospital or in a public health service laboratory in the United Kingdom; b unpaid service with a local authority in the United Kingdom acting in the exercise of their functions relating to health, welfare or the care of children and young persons or with a voluntary organisation providing facilities or carrying out activities of a like nature in the United Kingdom; c unpaid service in the prison or probation and aftercare service in the United Kingdom; d unpaid research in an institution in the United Kingdom or, in the case of a student attending an overseas institution as a necessary part of his course, in an overseas institution; or e unpaid service with– i a Health Authority established pursuant to section 8 of the National Health Service Act 1977 or a Special Health Authority established pursuant to section 11 of that Act ; ii a Health Board or a Special Health Board constituted under section 2 of the National Health Service (Scotland) Act 1978 ; or iii a health and social services board established under article 16 of the Health and Personal Social Services (Northern Ireland) Order 1972 . 5 An eligible student shall be eligible for a grant for living costs in respect of– a an academic year during which– i his course becomes a designated course, ii he or his spouse or parent is recognised as a refugee or is granted leave to enter or remain as mentioned in paragraph 3 of Schedule 1, or b any academic year which begins after the events referred to in paragraph (a) but shall not be eligible for a grant for living costs in respect of any other academic year. Grants for disabled students' living costs 13 1 An eligible student shall be eligible for grant for living costs equal to additional expenditure which the Secretary of State is satisfied he is obliged to incur in respect of his attendance at the course by reason of a disability to which he is subject; but the amount of grant shall not exceed the amounts referred to in paragraph (2). 2 The amounts referred to in this paragraph are such amounts as the Secretary of State considers appropriate: a not exceeding £10,250 in respect of each academic year for expenditure on a non-medical personal helper; b not exceeding £4,055 in respect of all the academic years during which the eligible student is eligible for support for expenditure on major items of specialist equipment, but where such payments have been made under the Education Act 1962 in respect of a transitional award holder the amounts of such payments shall be deducted from this maximum; c for expenditure incurred– i within the United Kingdom for the purposes of attending the institution; ii within or outside the United Kingdom for the purpose of attending, as a necessary part of his course, any period of study at an overseas institution; d not exceeding £1,350 in respect of each academic year for any other expenditure including expenditure incurred for the purposes referred to in paragraph (a) or (b) which exceeds the specified maxima. Grants for students who have left care 14 1 An eligible student– a who is under the age of 21 on the first day of the course; b in respect of whom a parental contribution is not applicable in accordance with Part II of Schedule 3 because he has pursuant to an order of a competent court been in the custody or care of or has been provided with accommodation as described in paragraph 3(1)(g) of that Schedule; and c in the opinion of the Secretary of State is subject to greater financial hardship by reason of having been in custody, care or having been provided with accommodation as mentioned in paragraph (b) than he would have been if he had not been in custody, care or having been provided with accommodation shall be eligible for such amount of grant not exceeding the amount referred to in paragraph (2) as the Secretary of State in all the circumstances considers appropriate. 2 The maximum amount of grant for which an eligible student shall be eligible under this regulation is £100 for each week or part of a week in an academic year which– a falls within the longest vacation taken; and b during no part of which week the student attends his course. Grants for dependants 15 1 Subject to the following paragraphs an eligible student shall in respect of each academic year be eligible for grant for living costs for his dependants as follows: a a grant of £2,075 for only one of the following: i a spouse, or ii an adult dependant whose net income does not exceed £2,980, or iii an only or eldest dependent child whose net income does not exceed £2,075; b for each of his dependent children in respect of whom a grant is not payable under sub-paragraph (a) and whose net income does not exceed the amount of grant applicable to his age by more than £905– i under the age of 11 immediately before the beginning of the academic year, a grant of £435; ii then aged 11 or over, but under 16, a grant of £870; iii then aged 16 or over, but under 18, a grant of £1,150; iv then aged 18 or over, a grant of £1,660; 2 The aggregate amount of grant under paragraph (1) shall be reduced by so much of the aggregate amount of the net income of the eligible student’s dependants as exceeds £905 multiplied by the number of such dependants. 3 If the eligible student’s spouse is also an eligible student or holds a statutory award and if in calculating the amount of support for which the spouse is eligible or payment to which he is entitled under the award account is taken of his dependants, the aggregate amount of grant calculated under paragraphs (1) and (2) shall be reduced by one half. 4 Where the eligible student maintains a dependant who is ordinarily resident outside the United Kingdom the grant under this regulation shall be such amount, if any, not exceeding the aggregate amount of grant calculated under paragraphs (1) to (3) as the Secretary of State considers reasonable in all the circumstances. 5 Where an eligible student with dependants maintains a home for himself and a dependant at a place other than that at which he resides while attending the course he shall be eligible for a grant of £720. 6 Where the eligible student is a lone parent he shall in addition to any grant referred to in the preceding paragraphs be eligible for a grant of £1,025. 7 Where the number of an eligible student’s dependants changes during an academic year the Secretary of State shall determine who the student’s dependants are for each of the three quarters of the academic year in respect of which instalments of grant are paid under regulation 24(2) by reference to the student’s circumstances during the relevant quarter. 8 Where the Secretary of State has determined who the student’s dependants are for a quarter under paragraph (7) the grant for dependants for the quarter shall be one third of the amount of grant for those dependants for an academic year and the amount of grant for the academic year shall be the aggregate of the three amounts so determined. 9 Where an eligible student is eligible for a grant for living costs in respect of an academic year under regulation 12(5)(a) he shall only be eligible for a grant under this regulation in respect of such of the three quarters of the year in respect of which instalments of grant are paid under regulation 24(2) as begin after the events referred to in regulation 12(5)(a), and subject to paragraphs (7) and (8) the grant for each such quarter shall be one third of the amount for an academic year and the amount for the academic year shall be the aggregate of the amounts payable in respect of each such quarter. 10 In this regulation– “adult dependant” means, in relation to an eligible student, an adult person dependent on the student not being his child, his spouse (whether ordinarily living with him or not) or a person living with him as his spouse or his former spouse; “child” in relation to an eligible student includes a step-child and any child for whom the student has parental responsibility and who is dependent on him; “dependant” means, in relation to an eligible student, his spouse, his dependent child or an adult dependant, who in each case is not an eligible student and does not hold a statutory award; “dependent” means wholly or mainly financially dependent; “spouse” does not include an eligible student’s spouse if they have ceased ordinarily to live together, whether or not an order for their separation has been made by any court, or if the spouse is ordinarily living outside the United Kingdom and is not maintained by him. 11 For the purposes of this regulation a dependant’s net income shall be his income from all sources for the academic year in question reduced by the amount of income tax and social security contributions payable in respect of it, but disregarding: a any pension, allowance or other benefit paid by reason of a disability to which the dependant is subject which is not subject to income tax under the Income Tax Acts, or, where the income is subject to the tax legislation of another member State, which would not be subject to tax under that legislation if it made provision equivalent to those Acts; b child benefit payable under Part IX of the Social Security Contributions and Benefits Act 1992 ; c any allowance payable to his spouse by an adoption agency in accordance with regulations made under section 57A of the Adoption Act 1976 ; d any guardian’s allowance to which his spouse is entitled under section 77 of the Social Security Contributions and Benefits Act 1992; e in the case of a spouse with whom a child in the care of a local authority is boarded out, any payment made to him in pursuance of section 23 of the Children Act 1989 ; f any payments made to his spouse in pursuance of an order made under section 34 of the Children Act 1975 or under section 15 of and Schedule 1 to the Children Act 1989 or any assistance given by a local authority pursuant to section 24 of that Act. 12 Where an eligible student or his spouse make any recurrent payments which were previously made by the student in pursuance of an obligation incurred before the first academic year of the student’s course the spouse’s net income shall be reduced by– a an amount equal to the payments in question for the academic year, if in the opinion of the Secretary of State the obligation had been reasonably incurred; or b such lesser amount if any as the Secretary of State considers appropriate, if in his opinion a lesser obligation could reasonably have been incurred. Grants for travel 16 1 Subject to the following paragraphs an eligible student shall in respect of each academic year be eligible for a grant equal to such reasonable expenditure which he is obliged to incur– a in the case of a student attending a course in medicine or dentistry, a necessary part of which is a period of study by way of clinical training, for the purpose of attending in connection with his course any hospital or other premises in the United Kingdom (not comprised in the institution) at which facilities for clinical training are provided, but not incurred for the purpose of residential study away from the institution; b within or outside the United Kingdom for the purpose of attending for a period of at least eight weeks and as a necessary part of his course an overseas institution. 2 In determining the expenditure incurred by an eligible student there shall be disregarded the first £250 of such expenditure. 3 For the purposes of this regulation any reference to expenditure incurred for the purpose of attending an institution or period of study– a includes expenditure both before and after so attending; and b does not include any expenditure in respect of which grant is payable under regulation 13. 4 Where an eligible student attends for a period of at least eight weeks and as a necessary part of his course an overseas institution and he reasonably incurs any expenditure in insuring against liability for the cost of medical treatment provided outside the United Kingdom for any illness or bodily injury contracted or suffered during that period he shall be eligible for additional grant under this regulation equal to the amount so incurred. PART V LOANS FOR LIVING COSTS Eligibility for loans for living costs 17 1 Subject to and in accordance with the following paragraphs and regulation 18 an eligible student shall be eligible for loan for living costs if: a he is under the age of 50 on the first day of the first academic year of the course; or b he is aged 50 or over and under the age of 55 on that day, if the Secretary of State is satisfied that he intends to enter employment after he has completed his course, or such other higher education course which he intends to start attending immediately after completing his present course, disregarding any intervening vacation. 2 An eligible student shall not be eligible for loan for living costs if he is a person mentioned in paragraph 7 of Schedule 1 and not in any other paragraph of that Schedule. 3 An eligible student shall be eligible for loan for living costs in respect of– a an academic year during which– i his course becomes a designated course, ii he or his spouse or parent is recognised as a refugee or is granted leave to enter or remain as mentioned in paragraph 3 of Schedule 1, or b any academic year which begins after the events referred to in paragraph (a) but shall not be eligible for loan for living costs in respect of any other academic year. Maximum amounts of loans 18 1 Subject to the following paragraphs the amount of loan for living costs in respect of each academic year shall not exceed: a for a student who resides at his parent’s home while attending the course, £2,875; b for a student who does not– i if he attends a course provided at the University of London or at an institution within the area comprising the City of London and the Metropolitan Police District, £4,480; ii if he attends for a period of at least eight weeks and as a necessary part of his course an overseas institution in a high cost country, £4,440 or in a higher cost country, £5,275; iii otherwise £3,635. 2 Subject to the following paragraphs the amount of loan for living costs in respect of an academic year which is the final year of a course other than an accelerated course shall not exceed: a for a student who resides at his parent’s home while attending the course £2,510; b for a student who does not– i if he attends a course at the University of London or at an institution within the area comprising the City of London and the Metropolitan Police District, £3,885; ii if he attends for a period of at least eight weeks and as a necessary part of his course an overseas institution in a high cost country, £3,865 or in a higher cost country, £4,590; iii otherwise £3,150. 3 Where an eligible student resides at his parent’s home and the Secretary of State is satisfied that in all the circumstances his parents by reason of age, incapacity, or otherwise cannot reasonably be expected to support him and that it would be appropriate for the amounts referred to in paragraphs (1)(b) or (2)(b) to apply the student shall be treated as if he were not residing at his parents' home. 4 Where an eligible student does not reside at his parent’s home but the Secretary of State is satisfied that in all the circumstances he could conveniently attend the course from his parent’s home and that it would be appropriate for the amounts referred to in paragraphs (1)(a) or (2)(a) to apply the student shall be treated as if he were residing at his parent’s home. 5 Where an eligible student is a member of a religious order who resides in a house of his order he shall be treated as if he were residing at his parent’s home. 6 Where an eligible student– a resides at his parent’s home for part of the period of attendance during an academic year and resides elsewhere for the remaining part of that period, or is treated as residing at his parent’s home or elsewhere under paragraphs (3) to (5) for part of that period, or b attends a course at the University of London or at an institution within the area comprising the City of London and the Metropolitan Police District, or at an overseas institution, for part of an academic year and a course at another institution for another part, the Secretary of State shall determine which of the rates referred to in paragraphs (1) and (2) shall apply for each of the three quarters of the academic year in respect of which instalments of loans are payable under regulation 24(2) by reference to the student’s circumstances during the relevant quarter. 7 Where the Secretary of State has determined applicable rates for each quarter under paragraph (6) the maximum amount of loan for living costs for the relevant quarter shall be one third of the maximum amount applicable at that rate for an academic year, and the maximum amount for the academic year shall be the aggregate of the three amounts so determined. 8 Where an eligible student is eligible for loan for living costs in respect of an academic year under regulation 17(3)(a) he shall only be eligible for loan in respect of such of the three quarters of the year in respect of which instalments of loan are paid under regulation 24(2) as begin after the events referred to in regulation 17(3)(a), and subject to paragraphs (6) and (7) the maximum loan for each such quarter shall be one third of the amount for the academic year and the maximum amount for the academic year shall be the aggregate of the maximum amounts in respect of each such quarter. 9 For the purposes of paragraphs (1) to (8) where a postgraduate course of initial training for teachers is of only one academic year’s duration that year shall not be treated as a final year. 10 Where an eligible student has in an academic year attended his course for a period of 30 weeks 3 days and attends for a further period the amounts referred to in paragraphs (1) and (2) shall be increased for each week or part week of such attendance: a for a student who resides or is treated as residing at his parents' home, by £44; b for a student who does not– i if he attends a course provided by the University of London or by an institution within the area comprising the City of London and the Metropolitan Police District, by £84; ii if he attends for at least eight weeks and as a necessary part of his course at an overseas institution and the further period of attendance is required at the overseas institution, if the overseas institution is in a high cost country, by £91, if the overseas institution is in a higher cost country, by £118; iii otherwise by £63. 11 Where an eligible student attends his course for a period of not less than 45 weeks in any continuous period of 52 weeks the amounts referred to in paragraphs (1) and (2) shall in addition be increased for each week during the 52 week period during which he did not attend by the amounts referred to in paragraph (10). 12 Where in relation to an academic year an eligible student is not eligible for a grant for living costs by virtue of regulation 12(3) or (4) he shall be eligible for a loan for living costs under this regulation but in paragraphs (1) and (2) there shall be substituted for the amounts in column one below the corresponding amounts in column two: £2,875 £1,360 4,480 2,200 4,440 2,180 5,275 2,590 3,635 1,780 2,510 995 3,885 1,605 3,865 1,595 4,590 1,895 3,150 1,295 Applications for loans 19 1 An eligible student who is eligible for a loan for living costs in respect of an academic year shall apply for such a loan not exceeding the maximum amount applicable in his case by completing and submitting to the Secretary of State an application in such form as he may require not later than one month before the end of that year. 2 The completed form shall include among other things the following particulars: a his United Kingdom national insurance number, unless he does not have one; b his most recent student loan account number, if any; and c the names, addresses and telephone numbers of two persons who know the student. 3 The student shall sign a declaration on the application form that– a the particulars given in the application form are correct to the best of his knowledge and belief; b he will notify the Secretary of State (or if any person is exercising functions in relation to his application by virtue of arrangements under section 23(4) of the Act he will notify that person) of any change in them; and c he will repay any amount lent to him, together with interest and applicable charges and penalties, in accordance with the Act and Regulations made thereunder from time to time. 4 In any case where– a the Secretary of State determines that the maximum amount of loan which has been notified to an eligible student in relation to an academic year should be increased (including an increase from nil) as a result of a reassessment of the student’s contribution or otherwise, and b the Secretary of State considers that the increase in the maximum amount does not result from the eligible student– i failing to provide information promptly which might affect his eligibility for a loan or the amount of loan for which he is eligible, or ii providing information which is inaccurate in any material particular, he may apply to borrow an additional amount which when added to the amount already applied for shall not exceed the increased maximum. 5 Such application shall be made by completing and submitting to the Secretary of State an application in such form as he may require not later than one month before the end of the academic year or one month after the date he received notice of the increased maximum amount, whichever is the later. 6 The student shall sign a declaration on the application form in the terms set out in paragraph (3). 7 Where an eligible student who has received at least one instalment of his loan has not applied for the maximum amount of loan to which he is entitled in relation to the academic year under the preceding paragraphs he may apply to borrow an additional amount once only under this paragraph, which when added to the amount already applied for shall not exceed the relevant maximum applicable in his case. 8 Such application shall be made by completing and submitting to the Secretary of State an application in such form as he may require not later than one month before the end of the academic year. 9 The student shall sign a declaration on the application form in the terms set out in paragraph (3). Hardship loans 20 1 An eligible student who has applied for the maximum amount of loan in respect of an academic year which has been notified to him and received at least one instalment of that loan may apply to the Secretary of State for a determination that he is eligible for an additional loan on grounds of hardship, which shall be known as a “hardship loan”. 2 A hardship loan shall be not less than £100 and not more than £250, and shall be a multiple of £25. 3 An eligible student shall demonstrate his eligibility for a hardship loan by providing such evidence of his requirements and resources as the Secretary of State may require. 4 On being satisfied that due to exceptional financial hardship the student may not be able to continue to attend his course for the remaining part of the academic year the Secretary of State shall determine the amount of hardship loan which he considers the student requires, and the student shall be eligible for hardship loan in that amount. 5 An eligible student who is eligible for a hardship loan shall apply for a loan not greater than the amount referred to in paragraph (4) by completing and submitting to the Secretary of State an application in such form as he may require not later than one month after the date he receives notice of the determination under paragraph (4) and one month before the end of the academic year. 6 The student shall sign a declaration on the application form in the terms set out in regulation 19(3). PART VI MEANS TEST Calculation of contribution 21 1 An eligible student’s contribution in respect of an academic year, if any, shall be the aggregate of his income for that year calculated in accordance with Part I of Schedule 3 and any contribution applicable in his case by virtue of Part II or III of that Schedule. 2 For the purposes of the exercise of the Secretary of State’s functions under the Act and regulations made under it he shall require an eligible student to provide from time to time such information as he considers necessary as to the income of any person whose means are relevant to the assessment of his contribution. Application of contribution 22 1 The maximum amounts of grants or loans for which an eligible student shall be eligible shall be the amounts remaining after subtracting in accordance with this regulation his contribution from the maximum amount of any– a grant for fees for which is he eligible under regulation 10, other than fees payable in respect of his attendance at a course– i at an institution which is neither maintained nor assisted by recurrent grants out of public funds, or ii at a course for the initial training of teachers referred to in paragraph 4 of Schedule 2 other than a course for a first degree; b grant for dependants for which he is eligible under regulation 15; c loan for living costs for which he is eligible under regulation 17, other than a loan to which a maximum amount referred to in regulation 3(9) or 18(12) applies; d grant for travel costs for which he is eligible under regulation 16. 2 Where the contribution exceeds the maximum amount of grant referred to in paragraph (1)(a) the maximum amount shall be reduced to nil, and the balance of the contribution not required to reduce the amount to nil shall be available to reduce the maximum amount of grant referred to in paragraph (1)(b). 3 Where– a regulation 11(c), (e) or (f) applies to the grant for fees for which the student is eligible, or b the student is not eligible for grant for fees in pursuance of regulation 10(7)(b), the amount available to reduce the maximum amount of grant referred to in paragraph (1)(b) shall be calculated in accordance with paragraph (2), but it shall be assumed that the maximum amount of grant referred to in paragraph (1)(a) is £1,025 rather than the amount referred to in regulation 11(c), (e) or (f) or, in the case of a student who is not eligible for grant in pursuance of regulation 10(7)(b), rather than nothing. 4 Where the contribution available to reduce the maximum amount of grant referred to in paragraph (1)(b) exceeds that maximum amount it shall be reduced to nil, and the balance of the contribution not required to reduce the amount to nil shall be available to reduce the maximum amount of loan referred to in paragraph (1)(c). 5 Subject to paragraph (6) where the contribution available to reduce the maximum amount of loan referred to in paragraph (1)(c) would reduce that amount to less than the following amounts– a in the case of a student who resides at his parent’s home while attending the course, £2,155; b for a student who does not– i if he attends a course provided at the University of London or at an institution within the area comprising the City of London and the Metropolitan Police District, £3,360; ii if he attends for a period of at least eight weeks and as a necessary part of his course an overseas institution in a high cost country, £3,330 or in a higher cost country, £3,955; iii otherwise, £2,725 the maximum amount shall be reduced to that amount, and the balance of the contribution not required to reduce the amount of loan to that amount shall be available to reduce the maximum amount of grant referred to in paragraph (1)(d). 6 Where the academic year in question is the final year of a course other than an accelerated course and the contribution available to reduce the maximum amount of loan referred to in paragraph (1)(c) would reduce that amount to less than the following amounts– a in the case of a student who resides at his parent’s home while attending the course, £1,880; b for a student who does not– i if he attends a course provided at the University of London or at an institution within the area comprising the City of London and the Metropolitan Police District, £2,915; ii if he attends for a period of at least eight weeks and as a necessary part of his course an overseas institution in a high cost country, £2,900 or in a higher cost country, £3,440; iii otherwise, £2,360 the maximum amount shall be reduced to that amount, and the balance of the contribution not required to reduce the amount of loan to that amount shall be available to reduce the maximum amount of grant referred to in paragraph (1)(d). 7 Where under regulation 18(6) the Secretary of State determines that different rates shall apply for different quarters of the academic year the amount to which the maximum amount shall be reduced in accordance with paragraphs (5) or (6) shall be the aggregate of the three amounts determined under paragraph (8) for the three quarters in respect of which loan is payable. 8 The amount for each quarter determined under this paragraph shall be one third of the amount referred to in paragraph (5) or (6) which corresponds to the rate which the Secretary of State has determined shall be applicable for the quarter. 9 Where the contribution available to reduce the maximum amount of grant referred to in paragraph (1)(d) exceeds that amount it shall be reduced to nil, and the balance of the contribution not required to reduce the amount to nil shall be available for the purpose of the following paragraph. 10 Where– a a balance of the contribution is available in accordance with paragraph (9), and b income referred to in paragraph 1(1)(b) of Schedule 3 is taken into account in calculating the contribution, the balance, or such part of the balance as does not exceed the amount of income taken into account as described in sub-paragraph (b), whichever is less, shall be available to reduce or further reduce the maximum amounts of grant and loan for which the student is eligible in accordance with paragraph (11). 11 The contribution available to reduce the maximum amounts of grant and loan in accordance with paragraph (10) shall be subtracted from such amounts in the following order: a loan for living cost for which the student is eligible under Part V; b grant for fees for which the student is eligible under Part III; c grant for students who have left care under regulation 14; d grant for disabled students' living costs under regulation 13. PART VII PAYMENTS Payment of grant for fees 23 1 The Secretary of State shall pay the grant for fees for which a student is eligible when a valid request for payment has been received from the academic authority, payment to be made to it– a not before the expiry of three months from the beginning of the academic year; b not later than 10 weeks after the expiry of that period, or promptly after a valid request for payment has been received, if that is later. 2 The Secretary of State may make a provisional payment where assessment of the student’s contribution or other matters have delayed final calculation of the amount of grant for which the student is eligible. 3 No payment of grant for fees shall be made if– a before the expiry of three months from the beginning of the academic year the eligible student ceases to attend the course, and b the academic authority has determined or agreed that he will not commence attending again during the academic year in respect of which the fees are payable, or at all. Payment of grants and loans for living costs 24 1 Subject to the following paragraphs the Secretary of State shall pay grants for which a student is eligible under Part IV or loans for which a student has applied under Part V in such instalments (if any) and at such times as he considers appropriate; and in the exercise of his functions under this paragraph he may in particular make provisional payments pending the final calculation of the amount of grant or loan for which the student is eligible. 2 Grants for which a student is eligible under regulation 15 and loans for which a student has applied under Part V other than a loan under regulation 20 shall be payable in respect of three quarters of the academic year, and no instalment shall be payable in respect of the quarter during which in the opinion of the Secretary of State the longest of any vacations is taken. 3 The Secretary of State shall pay support referred to in paragraph (2) in the following instalments: a if the first instalment is paid during the first quarter of the academic year in respect of which the support is payable it shall be paid in three equal instalments during the quarters in respect of which it is payable; b if the first instalment is paid during the second quarter of the academic year in respect of which support is payable it shall be paid in two instalments during the quarters in respect of which it is payable, the first amounting to two thirds of the amount to be paid, and the second one third of that amount; and c if the first instalment is paid during the third quarter of the academic year in respect of which the support is payable it shall be paid in one instalment. 4 Payments shall be made in such manner as the Secretary of State considers appropriate, and he may make it a condition of entitlement to payment that the eligible student shall provide him with particulars of a bank or building society account in the United Kingdom into which payments may be made by electronic transfer. 5 Subject to regulation 7 no support referred to in paragraph (2) shall be payable in respect of a quarter beginning after an eligible student has withdrawn from, abandoned or been expelled from his course. 6 No support referred to in paragraph (2) shall be payable in respect of a quarter during any part of which an eligible student is absent from his course, unless in the opinion of the Secretary of State it would be appropriate in all the circumstances to pay all or part of the support. 7 In deciding whether it would be appropriate to pay all or part of the support under paragraph (6) the circumstances which the Secretary of State shall have regard to shall include the reasons for the student’s absence, the length of the absence, and the financial hardship which not paying all or part of the instalment would cause. 8 An eligible student shall not be considered to be absent from his course if he is unable to attend due to illness and his absence has not exceeded 60 days. 9 Where after the Secretary of State has made any payment of support referred to in paragraph (2) he makes a determination of the amount of grant for which the student is eligible in respect of an academic year under regulation 15 either for the first time or by way of revision of a provisional or other determination of that amount– a if the determination increases the amount of grant for which the student is eligible he shall pay the additional amount in instalments in accordance with paragraph (3), paying the first instalment as soon as is reasonably practicable after the determination and any subsequent instalment with instalments already payable; b if the determination decreases the amount of grant for which the student is eligible he shall subtract the amount of the decrease from any instalments of grant which remain to be paid under regulation 15, so that the instalments continue to bear the proportion to each other referred to in paragraph (3); c if the amount of the decrease is greater than the amount of grant remaining to be paid that amount shall be reduced to nil, and the balance subtracted from any other grant for which the student is eligible in respect of the academic year; d any remaining overpayment shall be recovered in accordance with regulation 25. 10 Where the Secretary of State has made any payment of support referred to in paragraph (2) and a student who is eligible for a loan under Part V other than a loan under regulation 20 applies for such a loan or applies for an additional such loan in respect of an academic year the Secretary of State shall pay the loan or the additional loan in instalments in accordance with paragraph (3), paying the first instalment as soon as is reasonably practicable after a satisfactory application has been received and any subsequent instalment with instalments already payable. 11 Where the Secretary of State has paid an instalment of loan for which a student is eligible in respect of an academic year under Part V and he makes a determination that the amount of loan for which the student is eligible is less than the amount previously determined, either by way of revision of a provisional determination or otherwise,– a he shall subtract such amount as is necessary to ensure that the student does not borrow an amount greater than the amount which he is eligible to borrow from any instalments of loan which remain to be paid, so that the instalments continue to bear the proportion to each other referred to in paragraph (3); b if the amount to be subtracted is greater than the amount of loan remaining to be paid that amount shall be reduced to nil; c any remaining overpayment shall be recovered in accordance with regulation 25. Overpayments 25 1 Any overpayment of grant for fees under Part III shall be recovered by the Secretary of State from the academic authority. 2 Any overpayment of grant for living costs under Part IV shall be recovered in such one or more of the following ways as the Secretary of State considers appropriate in all the circumstances: a by subtracting the overpayment from any other grant for which the student is eligible in respect of the academic year in question, or if necessary from any other grant for which he is eligible in respect of any other academic year; b by subtracting the overpayment from any payment of loan for living costs under Part V which is payable under regulation 24; c by taking such other action for the recovery of a payment without statutory authority as is available to him. 3 Any overpayment of a loan for living costs under Part V in respect of any academic year may be recovered if in the opinion of the Secretary of State– a the overpayment is a result of a failure of the student to provide promptly information which might affect his eligiblity for a loan or the amount of loan for which he is eligible, or b any information which he has provided is inaccurate in a material particular but otherwise it shall be treated as a loan properly made under Part V which shall be repayable in accordance with the Act and Regulations made under it. 4 Where an overpayment of loan is treated as properly made under paragraph (3) the Secretary of State may subtract the overpayment from the amount of loan for which the student is eligible in respect of any other academic year. 5 Where an overpayment of loan for living costs is recoverable in accordance with paragraph (3) it shall be recovered in such one or more of the following ways as the Secretary of State considers appropriate in all the circumstances: a by subtracting the overpayment from the amount of loan for which the student is eligible in respect of any other academic year; b by subtracting the overpayment from any grant for which the student is eligible in respect of the academic year in question, or if necessary from any grant for which he is eligible in respect of any other academic year; c by taking such other action for the recovery of a payment made without statutory authority as is available to him. PART VIII LOAN REPAYMENTS AND INTEREST Interest 26 1 Subject to paragraph (2) loans shall bear interest at the rate which in relation to a loan made under these Regulations on or after 1st September 1999 will result in an annual percentage rate of charge determined in accordance with the Consumer Credit (Total Charge for Credit) Regulations 1980 equal to the percentage increase between the retail prices all items index published by the Office for National Statistics for March 1998 and that index so published for March 1999. 2 If the rate referred to in paragraph (1) exceeds the rate for the time being specified for the purposes of any exemption conferred by virtue of section 16(5)(b) of the Consumer Credit Act 1974 loans shall bear interest at the rate so specified. 3 Interest shall be calculated on the principal outstanding daily, and shall be added to the principal monthly. 4 The index of prices which the Secretary of State is required by section 22(8) of the Act to have regard to in prescribing the rate of interest which loans shall bear shall be the retail prices all items index mentioned in paragraph (1). Repayments 27 1 A borrower may pay any part of or all of any moneys he owes to the Secretary of State under the Act and Regulations at any time without charge or penalty. 2 A borrower shall not be required to pay any moneys he owes before 6th April 2000. 3 Any liability of a borrower under the Act and Regulations shall be cancelled if he– a dies; b is not in breach of any obligation to repay any loan and he has attained the age of 65; or c receives a disability related benefit and the Secretary of State is satisfied that because of his disability he is permanently unfit for work. 4 For the purposes of paragraph (3) “loan” has the meaning given it in regulation 4(3). Insolvency 28 1 In England and Wales there shall not be treated as part of a bankrupt’s estate or claimed for his estate under section 307 or 310 of the Insolvency Act 1986 any sum payable to an eligible student by way of a loan and which he receives or is entitled to receive after the commencement of the bankruptcy, whether his entitlement arises before or after the commencement of his bankruptcy. 2 In Scotland, where after the date of sequestration of a person’s estate, he receives, or is entitled to receive, sums by way of loan— a the sheriff shall not, in fixing an amount under subsection (2) of section 32 of the Bankruptcy (Scotland) Act 1985 , treat the sums as income of the person; and b for the purpose of subsection (6) of that section the sums shall not be treated as estate vesting in, or requiring to be conveyed or delivered to, the person’s permanent trustee. 3 In Northern Ireland there shall not be treated as part of a bankrupt’s estate or claimed for his estate under Article 280 or 283 of the Insolvency (Northern Ireland) Order 1989 any sum payable to an eligible student by way of a loan and which he receives or is entitled to receive after the commencement of the bankruptcy, whether his entitlement arises before or after the commencement of his bankruptcy. Tessa Blackstone Minister of State, Department for Education and Employment 24th February 1999