Explanatory note
(This note is not part of the Regulations)
These Regulations amend the Education (Student Loans) (Repayment) Regulations 2000 (“the 2000 Regulations”). The amending regulations concern the provision of information to the Secretary of State by borrowers of student loans and the imposition of penalties upon failure to do so. They also increase the earnings threshold for repayment.
Regulation 10 of the 2000 Regulations is amended to provide that where penalties, costs or expenses are charged as a result of a failure to provide information, these will be satisfied first wherever a repayment is received (regulation 5).
Regulation 6 inserts a series of new regulations into the 2000 Regulations. The first of these, regulation 13A, creates a requirement that borrowers must inform the Secretary of State each time that their home address or name changes.
Regulation 13B provides that the Secretary of State may serve an Information Notice on a borrower requiring him to provide certain information. The borrower must comply with the Notice within 28 days of service.
Regulation 13C allows the Secretary of State to impose penalties on borrowers where they have failed to comply with a requirement to provide information, whether the loan is due for repayment or not. The Secretary of State must inform the borrower of the penalty by serving a Penalty Notice on him.
Regulation 13D sets out the circumstances where the Secretary of State may require the reimbursement of costs and expenses by a borrower.
Regulation 13E allows the Secretary of State to relax a time limit contained in regulation 13B or regulation 13C where he considers it appropriate to do so.
Regulation 7 raises the earning threshold for repayment from £10,000 to £15,000 from 6th April 2005. This amendment applies to all borrowers regardless of the date that their liability to repay arose.
Regulation 8 amends regulation 15 of the 2000 Regulations to correct a drafting error.
A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.