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The Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2017

W.S.I. 2017/489 · Made 28 March 2017 · Extends to England and Wales

Up to date with all changes known to legislation.gov.uk, revised to 1 August 2017.

Education, Wales

Made 28 March 2017

Laid before the National Assembly for Wales 30 March 2017

Coming into force 1 August 2017

The Welsh Ministers make the following Regulations in exercise of the powers conferred upon the Secretary of State by sections 22 and 42(6) of the Teaching and Higher Education Act 1998f1and now exercisable by themf2:

Annotations to the whole text

Footnotes

f1

1998 c. 30; section 22 was amended by section 146 of and Schedule 11 to the Learning and Skills Act 2000 (c. 21), section 722 of and Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003 (c. 1), section 147 of the Finance Act 2003 (c. 14), sections 42 and 43 of and Schedule 7 to the Higher Education Act 2004 (c. 8), section 257 of the Apprenticeships, Skills, Children and Learning Act 2009 (c. 22), section 76 of the Education Act 2011 (c. 21), and paragraph 6 of the Schedule to the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013/1881. The amendments made by the Education Act 2011 apply in relation to a student who begins a course on or after 1 September 2012, except in such circumstances as may be prescribed.

f2

The functions of the Secretary of State under section 22 of the Teaching and Higher Education Act 1998 (except so far as they relate to the making of any provision authorised by subsection (2)(a), (c), (j) or (k), (3)(e) or (f) or (5)) were transferred to the National Assembly for Wales by section 44 of the Higher Education Act 2004 (c. 8) and S.I. 2005/1833 (W. 149) (as amended by S.I. 2006/1660 (W. 159)). The functions of the National Assembly for Wales were transferred to the Welsh Ministers by virtue of section 162 of and paragraphs 30(1) and 30(2)(c) of Schedule 11 to the Government of Wales Act 2006 (c. 32).

Contents

  1. 1Title and commencement
  2. 2Application
  3. 3Interpretation
  4. 4Qualification for cancellation
  5. 5Circumstances
  6. 6Specified Amount
  7. 7Outstanding Liability
  8. 8Cancellation
  9. 9Cancellation
  10. Signature
  11. Explanatory note

1Title and commencementI1

(1)

The title of these Regulations is the Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2017.

(2)

These Regulations come into force on 1 August 2017.

2ApplicationI1

These Regulations apply in relation to Wales and to the provision of support to students in respect of the Academic Year 2017/2018.

3InterpretationI1

In these Regulations—

  • “the 1998 Act” (“Deddf 1998”) means the Teaching and Higher Education Act 1998;

  • “the 2008 Act” (“Deddf 2008”) means the Sale of Student Loans Act 2008f1;

  • “academic year” (“blwyddyn academaidd”) means the period of twelve months beginning on 1 September, 1 January, 1 April or 1 July of the calendar year in which the academic year of the course in question begins, according to whether that academic year begins on or after 1 August but before 1 January, on or after 1 January but before 1 April, on or after 1 April but before 1 July, or on or after 1 July but before 1 August, respectively;

  • “Academic Year 2017/2018” (“Blwyddyn Academaidd 2017/2018”) means an academic year which begins on or after 1 September 2017 but before 1 September 2018;

  • “the borrower” (“y benthyciwr”) means a person who has received a loan for living costs from the Welsh Ministers in respect of the Academic Year 2017/2018;

  • “loan for living costs” (“benthyciad at gostau byw”) is a loan received from the Welsh Ministers in respect of the Academic Year 2017/2018 under Part 6 of the Education (Student Support) (Wales) Regulations 2017f2;

  • “the Outstanding Liability” (“yr Atebolrwydd sydd heb ei Dalu”) has the meaning given in regulation 7;

  • “the Repayment Date” (“y Dyddiad Ad-dalu”) means the day after the date on which the borrower’s first loan repayment is considered to have been received by either Her Majesty’s Revenue and Customs or the Welsh Ministers, whichever is considered (in accordance with regulations made under section 22 of the 1998 Act f3) to have received it first;

  • “the Satisfaction Date” (“y Dyddiad Bodloni”) has the meaning given in regulation 9;

  • “the Specified Amount” (“y Swm Penodedig”) has the meaning given in regulation 6; and

  • “Welsh Ministers” (“Gweinidogion Cymru”) includes any person to whom they have transferred or delegated their functions under section 23 of the 1998 Actf4 or to whom they have transferred their rights under section 9 of the 2008 Act.

4Qualification for cancellationI1

A borrower qualifies for cancellation of the Specified Amount of their Outstanding Liability in the circumstances set out in regulation 5 (“the Circumstances”).

5CircumstancesI1

The Circumstances for the purposes of regulation 4 are that—

(a)

the borrower has received a loan for living costs; and

(b)

the Welsh Ministers consider that, on the Repayment Date, the borrower—

(i)

is not in breach of any obligation contained in any agreement for a student loan or in any regulations made under section 22 of the 1998 Act;

(ii)

does not have outstanding penalties, costs, expenses or charges in relation to such a loan pursuant to any such agreement or regulations; and

(iii)

has not received a cancellation under the provisions of the Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2010f1, the Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2011f2, the Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2012f3, the Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2013f4, the Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2014f5, the Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2015f6 or the Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2016f7 of any of their liability for payment in respect of a loan received from the Welsh Ministers.

6Specified AmountI1

The Specified Amount for cancellation to which regulation 4 refers is the lesser of—

(a)

£1,500;

(b)

the Outstanding Liability.

7Outstanding LiabilityI1

(1)

Subject to paragraph (2), the Outstanding Liability is the total amount considered to be payable by the borrower on the Repayment Date in respect of any loan for living costs, but does not include any interest accrued on that loan, or penalties, costs, expenses or charges incurred in respect of any such loan.

(2)

For the purposes of regulation 9, the Outstanding Liability is the total amount considered to be payable by the borrower on the Satisfaction Date in respect of any loan for living costs, but does not include any interest accrued on that loan, or penalties, costs, expenses or charges incurred in respect of any such loan.

(3)

For the purposes of calculating the Outstanding Liability in paragraphs (1) and (2), the amount considered to be payable by the borrower is calculated in accordance with regulations made pursuant to section 22 of the 1998 Actf1.

8CancellationI1

In the Circumstances in regulation 5, the Welsh Ministers must cancel the Specified Amount with effect from the Repayment Date.

9CancellationI1

If any of the Circumstances in regulation 5(b) are not satisfied on the Repayment Date, but they become satisfied at a later date, the Welsh Ministers may cancel the Specified Amount with effect from the date that they consider the Circumstances to have been satisfied (“the Satisfaction Date”).

Signature

Kirsty Williams

Cabinet Secretary for Education, one of the Welsh Ministers

28 March 2017

Explanatory note

(This note is not part of the Regulations)

These Regulations govern the student loan liability of students who receive loans for living costs from the Welsh Ministers in respect of the academic year 2017/2018.

These Regulations provide for up to £1,500 of each borrower’s living costs loan liability to be cancelled in certain circumstances, with effect from the day after the date on which their first loan repayment is considered to have been received.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result it was not considered necessary to carry out a regulatory impact assessment as to the likely costs and benefits of complying with these Regulations.