Office of Public Sector Information

PART 7 GENERAL LOAN PROVISIONS

Additional amount of loans

50.—(1) An eligible student may apply to borrow an additional amount of loan for living costs where —

(a) the National Assembly determines that the maximum amount of loan for living costs which has been notified to the student in relation to an academic year should be increased (including an increase from nil) as a result of a reassessment of the student’s contribution or otherwise; and

(b) the National Assembly considers that the increase in the maximum amount does not result from the eligible student —

(i) failing to provide information promptly which might affect his or her ability to qualify for a loan or the amount of loan for which he or she qualifies; or

(ii) providing information which is inaccurate in any material particular.

(2) The additional amount under paragraph (1) is an amount which when added to the amount already applied for does not exceed the increased maximum.

(3) Where an eligible student has applied for a loan of less than the maximum amount to which he or she is entitled in relation to the academic year, he or she may apply to borrow an additional amount which, when added to the amount already applied for, does not exceed the relevant maximum applicable in his or her case.

Interest

51.—(1) Subject to paragraph (2), loans bear interest at the rate which will result in an annual percentage rate of charge determined in accordance with the Consumer Credit (Total Charge for Credit) Regulations 1980(58) equal to the percentage increase between the retail prices all items index published by the Office for National Statistics for March 2006 and that index so published for March 2007.

(2) If the rate referred to in paragraph (1) exceeds the rate for the time being specified for the purposes of any exemption conferred by virtue of section 16(5)(b) of the Consumer Credit Act 1974(59) loans bear interest at the rate so specified.

(3) Interest is calculated on the principal outstanding daily and is added to the principal monthly.

(4) The index of prices to which the National Assembly is required by section 22(8) of the Act to have regard in prescribing the rate of interest which loans bear is the retail prices all items index mentioned in paragraph (1).

PART 8 COLLEGE FEE LOANS

52.  A college fee loan is available to an eligible student in accordance with Schedule 4.

PART 9 FINANCIAL ASSESSMENT

Calculation of contribution

53.—(1) An eligible student’s contribution in respect of an academic year is the amount, if any, calculated under Schedule 5.

(2) For the purposes of the exercise of the National Assembly’s functions under the Act and regulations made under it, the National Assembly may require an eligible student to provide from time to time such information as it considers necessary as to the income of any person whose means are relevant to the assessment of the student’s contribution.

Application of contribution

54.—(1) Subject to paragraphs (2) and (3), an amount equal to the contribution calculated under Schedule 5 must be applied until it is extinguished against the amount of the particular grants and loans for which the eligible student qualifies as follows —

(a) first, to reduce GFF;

(b) second, to reduce ADG;

(c) third, to reduce CCG;

(d) fourth, to reduce PLA;

(e) fifth, to reduce LLC to no less than the minimum level for the academic year;

(f) sixth, to reduce GFT.

(2) In the case of an old system eligible student —

(a) where the grant for fees is calculated in accordance with regulation 16(1) and 16 (7), —

(i) GFF is £1,225; and

(ii) The amount of grant for fees payable is the amount left after deducting the contribution from GFF;

(b) where regulation 16(3)(a) or (c) applies—

(i) GFF is £610; and

(ii) the amount of grant for fees payable is the amount left after deducting the contribution from GFF;

(c) where regulation 16(3)(b), (d) or (e) applies —

(i) GFF is £610; and

(ii) the contribution is reduced by £610 before it is applied against GFF;

(d) where the designated course is a course for the initial training of teachers (other than a course for a first degree) —

(i) GFF is nil;

(ii) there is no reduction in the amount of grant for fees calculated under regulations 16 and 17; and

(iii) the contribution is first applied to reduce ADG;

(e) Where the student does not qualify for a grant for fees in respect of the academic year by virtue of participating in the ERASMUS programme —

(i) GFF is nil;

(ii) the contribution is reduced by £1,225; and

(iii) the contribution is applied first to reduce ADG;

(f) where the student does not qualify for a grant for fees for any other reason, GFF is nil and the contribution is applied first to reduce ADG.

(3) In the case of a new system eligible student, GFF is nil and the contribution is applied first to reduce ADG.

(4) In this regulation —

(a) ADG is the amount, if any, of the adult dependants' grant calculated in accordance with regulation 26;

(b) CCG is the amount, if any, of the childcare grant calculated in accordance with regulation 27;

(c) PLA is the amount, if any, of the parents' learning allowance calculated under regulation 28 (except the first £50 of the allowance);

(d) LLC is the amount of loan for living costs, if any, for which the eligible student other than a student with reduced entitlement qualifies under Part 6;

(e) GFT is the amount of the grant for travel for which the eligible student qualifies under regulation 31, if any.

(5) Subject to paragraphs (6) and (7), the “minimum level for the academic year” (“lefel isaf am y flwyddyn academaidd”) is —

(a) £2,620, in the case of a student in category 1;

(b) £4,740, in the case of a student in category 2;

(c) £4,035, in the case of a student in category 3;

(d) £4,035, in the case of a student in category 4;

(e) £3,385, in the case of a student in category 5;

(6) Subject to paragraph (7), where the academic year in question is the final year of a course other than an accelerated course, the “minimum level for the academic year” (“lefel isaf am y flwyddyn academaidd”) is —

(a) £2,370, in the case of a student in category 1;

(b) £4,315, in the case of a student in category 2;

(c) £3,510, in the case of a student in category 3;

(d) £3,510, in the case of a student in category 4;

(e) £3,135, in the case of a student in category 5.

(7) Where under regulation 42 different categories apply for different quarters of the academic year, the minimum levels in paragraphs (5) and (6) are the aggregate of the amounts determined under paragraph (8) for each of the three quarters in respect of which a loan is payable.

(8) The amount determined for each quarter under this paragraph is one third of the amount in paragraph (5) or (6) which corresponds to the rate applicable for the quarter.

(9) The loan for living costs payable in respect of an academic year to a type 1 teacher training student who has a household income exceeding £38,810 is the amount left after deducting £610 from the amount of loan for living costs left after applying the contribution in accordance with this regulation.

(10) The loan for living costs payable in respect of an academic year to a type 2 teacher training student who has a household income exceeding £38,810 is the amount left after deducting £1,225 from the amount of loan for living costs left after applying the contribution in accordance with this regulation.

(11) Categories 1 to 5 have the meaning given in regulation 49.