Paragraph 1 I1

In the loan agreement:

• “APR” means the annual percentage rate of charge calculated under the Consumer Credit (Total Charge for Credit) Regulations 1980^f1;

• “course” means the course of study on which the borrower was registered when his eligibility for the loan was confirmed by the HEI and includes a different course at the same HEI if the borrower would have been eligible for a loan on that course and he transfers to it without a break in study;

• “deferment level” means 85% of the lender’s estimate of average monthly earnings of all full-time employees in Great Britain for the January when the level will apply based on figures published by the Office for National Statistics, or if that Office ceases to publish relevant figures, any other published figures;

• “disability related benefits” 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^f2,or the Social Security Contributions and Benefits (Northern Ireland) Act 1992^f3, 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^f4,or the Income Support (General) Regulations (Northern Ireland) 1987^f5, or any other statutory disability related benefit which replaces any of those benefits and which the lender gives the borrower details of;

• “disability related costs” means one twelfth of any expenditure which the lender accepts that a borrower who is in receipt of a disability related benefit will have to pay because of his disability during the 12 months following the relevant month;

• “gross income” means income from all sources before deduction for or relief from tax or other statutory charge, but not including any disability related benefits, and less any disability related costs;

• “HEI” means the Higher Education Institution which the borrower is attending for his course;

• “lender” means the Student Loans Company Limited and any person to whom that Company may transfer its rights and obligations under the loan agreement;

• “relevant month” means the month before the month in which the borrower asks for deferment;

• “RPI rate” means the percentage increase between the retail prices all items indices published by the Office for National Statistics for the two months of March immediately preceding the 1st September on which the interest rate is changed or, if that retail prices index is not published, another index which reflects price increases which the lender gives the borrower details of;

• “student loan” means a loan made by the Student Loans Company Limited under the Education (Student Loans) (Northern Ireland) Order 1990 (as amended) or the Education (Student Loans) Act 1990 (as amended).