Explanatory Memorandum to the Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2019
This Explanatory Memorandum has been prepared by the Higher Education Division and is laid before the National Assembly for Wales in conjunction with the above subordinate legislation and in accordance with Standing Order 27.1.
Minister’s Declaration
In my view, this Explanatory Memorandum gives a fair and reasonable view of the expected impact of the Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2019.
Kirsty Williams AM
Minister for Education
3 July 2019
These Regulations provide for up to £1,500 of a full-time, undergraduate student’s living costs loan (also known as a maintenance loan) for academic year 2019/2020, to be cancelled in certain circumstances. The cancellation will take effect from the day after the date on which the student’s first loan repayment is received.
These Regulations are made by the Welsh Ministers in exercise of the powers conferred upon the Secretary of State by sections 22 and 42(6) of the Teaching and Higher Education Act 1998 (“THEA”) and which are now exercisable by them in relation to Wales.
The relevant functions of the Secretary of State under section 22 of THEA were transferred to the National Assembly for Wales by section 44 of the Higher Education Act 2004. The functions of the Secretary of State under section 42(6) of THEA were transferred to the National Assembly for Wales by the National Assembly for Wales (Transfer of Functions) Order 1999. All of these functions were then transferred to the Welsh Ministers by virtue of section 162 of and paragraphs 30(1) and 30(2)(c) of Schedule 11 to the Government of Wales Act 2006.
Undergraduate students who receive a living costs loan from the Welsh Ministers in academic year 2019/2020 will do so under the Education (Student Support) (Wales) Regulations 2017 (S.I. 2017/47 (W. 21)) or the Education (Student Support) (Wales) Regulations 2018 (S.I. 2018/191 (W. 42)), depending on when their course starts.
Provisions relating to the repayment of living costs loans are contained in the Education (Student Loans) (Repayment) Regulations 2009 (SI 2009/470), (as amended) which are made on a composite basis by the Welsh Ministers and the Secretary of State under sections 22 and 42 of THEA and sections 5 and 6 of the Sale of Student Loans Act 2008.
This instrument will follow the Negative Resolution procedure.
These Regulations make provision for students, who receive a living costs loan from the Welsh Ministers for academic year 2019/20 in respect of a full-time, undergraduate course to benefit from a reduction in the balance of their loan of up to £1,500 when they start repaying their loan. This will not be in the form of a cash lump sum; rather the balance of an individual’s loan will be reduced by the appropriate amount the day after a borrower’s first repayment is made.
A student can only receive a partial cancellation once; they cannot receive a partial cancellation in respect of academic year 2019/20 if they have already received a cancellation in respect of any previous academic year. A student will not be entitled to a partial cancellation if there are any outstanding charges or penalties or if they are in breach of their loan agreement or any regulations made under section 22 of THEA.
5. Consultation
No consultation has been undertaken as these Regulations are technical in nature and simply update the academic year for which this scheme will operate.