Regulation 20A Excess payments: more than one loanF1

This regulation applies where—

Where the amount of the excess payment exceeds £10, the Authority must give notice to the borrower that—

The Authority must treat any excess payment as a direct payment to the Authority F6... for the second loan, unless the borrower gives notice to the Authority in accordance with paragraph (2)(a).

Where the borrower gives notice to the Authority in accordance with paragraph (2)(a) that the excess payment should be refunded, the Authority must refund the excess payment and any accrued interest to the borrower.

A refund under paragraph (4) carries interest calculated as if it were the principal of the fully repaid loan, outstanding from the date of receipt of the repayment to the earlier of—

after which period no interest will accrue.

In this regulation—

F8“dual-plan loan” means any two of the following—

1. (a)

   a plan 1 loan;

2. (b)

   a plan 2 loan;

3. (c)

   a plan 3 loan;

4. (d)

   a plan 4 loan;

5. (e)

   a plan 5 loan;

“fully repaid loan” means a loan that has been repaid in full in the circumstances described in paragraph (1);

“second loan” means the loan that remains unpaid in those circumstances;

“excess payment” means the amount of the repayment described in paragraph (1)(b) which is not required to repay the fully repaid loan.