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Regulation 7 Time and manner of repayments

Original text. Later amendments are not shown.

(1)

Subject to regulations 8, 9 and 10 a borrower shall commence repayment of his loan on 1st April in the year following the final year of the course to which the loan relates or, if he did not complete the course, 1st April next following the date he ceased to attend the course.

(2)

Subject to regulations 8, 9 and 10 repayments shall be made in 60 monthly instalments calculated in accordance with paragraph (3) in the case of a borrower who has received a loan in relation to less than five academic years and in 84 such instalments calculated as aforesaid in all other cases.

(3)

On the date mentioned in paragraph (6) in each year the amount of the monthly repayment shall be calculated by dividing the aggregate amount of the loan outstanding at that date (including interest added during the preceding twelve months) and of interest which will accrue during the remaining period of repayment (on the assumption that the rate of interest will not change during that period) by the number of repayment instalments still to be paid, and during the period of twelve months beginning with that date the amount so calculated shall be the amount of the monthly repayment.

(4)

Repayments shall be made by direct debit from the borrower’s bank or building society account unless the loans administrator agrees otherwise.

(5)

Nothing in this regulation shall be taken to prevent a borrower from reducing or discharging his liability in respect of his loan with the agreement of the loans administrator sooner than required by the regulation, and where a borrower wishes so to reduce or discharge his liability the amount and time of repayments shall be determined by the loans administrator and paragraphs (2) and (3) shall no longer apply to the loan.

(6)

The date mentioned in paragraph (3) is 1st September except in relation to a person who ceases to attend a course during the period commencing on 1st September in any year and ending on the following 31st March, in which case the date is such date as the loans administrator considers appropriate.