The Education (Student Loans) (Northern Ireland) Order 1990

Article 3(5).

SCHEDULE 2LOANS FOR STUDENTS

Principal, interest and payments

1.—(1) Regulations made by the Department shall—

(a)prescribe the maximum amount of the loan that may be made to a student in any year;

(b)make provision as to the time and manner in which repayments of loans are to be made; and

(c)make provision for the deferment or cancellation of a borrower’s liability in respect of a loan.

(2) The maximum amount prescribed under sub-paragraph (1)(a) for the loan to be made to a student in any year shall not exceed—

(a)the amount specified as the ordinary maintenance requirement for students of the class or description to which he belongs by regulations having effect for that year under Articles 50 and 51 of the Education and Libraries (Northern Ireland) Order 1986(1) (awards by boards and the Department); or

(b)if no such amount is specified for students of the class or description to which he belongs, such amount as the Department considers appropriate for students of that class or description having regard to the amount specified as mentioned in head (a);

but regulations, other than the first, made under sub-paragraph (1)(a) may prescribe a higher maximum if a draft of the regulations has been laid before and approved by the Assembly.

(3) Regulations under sub-paragraph (1)(b) shall make such separate provision as the Department considers appropriate with respect to the repayment of loans by borrowers who are disabled.

(4) Loans shall bear interest at such rates as may be prescribed by regulations made by the Department, but so that—

(a)the interest (which shall accrue from day to day) shall be added to the outstanding amount of a loan; and

(b)the rates shall be such as appear to the Department to be requisite for maintaining the value of that amount in real terms.

(5) For the purposes of sub-paragraph (4)(b) the Department shall have regard to the retail prices index published by the Central Statistical Office of the Chancellor of the Exchequer, any substituted index or index figures published by that Office or such other index as appears to the Department to be appropriate.

Certificates etc.

2.—(1) The Department may by regulations require the governing bodies of institutions at which eligible students are attending courses to take such steps (whether by the issue of certificates or otherwise) as may be prescribed by the regulations for the purposes of, or in connection with, applications by those students for loans under the arrangements made under Article 3, including the provision of information when a person ceases to be an eligible student.

(2) For the purposes of this paragraph the governing body—

(a)in relation to a university, means the body responsible for the management and administration of its revenue and property and the conduct of its affairs;

(b)in relation to a college of further education, as defined in section 80(1) of the Self-Governing Schools etc. (Scotland) Act 1989(2), with a college council established under section 54 of that Act, means that council; and

(c)in relation to a college of further education as so defined without such a council, means the education authority within whose area the college is situated.

Administration

3.—(1) The arrangements may provide for the loans to be made and recovered, and other functions in relation to the loans to be discharged, by such person or persons as may agree to do so or by one or more bodies constituted or acquired by the Department for that purpose.

(2) The Department shall provide any person or body having the function of making loans under the arrangements with the funds necessary for making the loans; and any such person or body shall make such periodical repayments to the Department in respect of those funds as the Department may require.

(3) Arrangements made by virtue of this paragraph may include provision for defraying the administrative expenses incurred by the person or body in question in discharging the functions to which the arrangements relate and for remunerating that person or body for discharging them.

(4) Regulations made under paragraph 1(1)(b) or (c) may confer functions on any such person or body as is mentioned in sub-paragraph (1), including power to exercise a discretion in relation to any matter for which the regulations provide.

(5) Any arrangements made by virtue of this paragraph shall provide for the appointment of an independent person approved by the Department with the function of investigating and reporting on disputes between borrowers or intending borrowers under this Order and any person or body having the function of making loans under the arrangements.

(6) Any person or body having the function of making loans by virtue of this paragraph shall make to the Department such periodical reports as the Department may require with respect to the working of the arrangements under which the loans are made.

(7) Any person or body having the function of recovering loans under the arrangements may, for appropriate consideration, assign the right of recovery to a third party.

(8) No document sent in connection with loans under the arrangements by any such person or body as is mentioned in sub-paragraph (1) shall be regarded as sent with a view to financial gain within the meaning of section 50 of the Consumer Credit Act 1974(3) (circulars to minors).

Restriction on disclosure of information

4.—(1) No person or body having by virtue of paragraph 3 the function of making and recovering loans shall provide or make available to anyone else (whether for consideration or not) any information held for the purpose of discharging those functions if the information is to be used for soliciting custom for goods or services.

(2) As respects information constituting personal data for the purposes of the Data Protection Act 1984(4) sub-paragraph (1) is without prejudice to the requirements of that Act but applies irrespective of any consent given for the purposes of that Act by the person to whom the information relates.

Insolvency

5.—(1) There shall not be treated as part of a bankrupt’s estate or claimed for his estate under Article 280 or 283 of the Insolvency (Northern Ireland) Order 1989(5) any sums to which this paragraph applies and which he receives or is entitled to receive after the commencement of the bankruptcy.

(2) No debt or liability to which a bankrupt is or may become subject in respect of any such sum shall be included in his bankruptcy debts.

(3) This paragraph applies to any sum by way of loan under the arrangements payable to the bankrupt pursuant to an agreement entered into by him before or after the commencement of the bankruptcy.