Statutory Instruments with Clear Reports

16 July 2024

SL(6)502 – The Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2024

Procedure: Made Negative

The Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2024 (“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 2024/25 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. It 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 2024/25 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 they are in breach of their loan agreement or any regulations made under section 22 of the Teaching and Higher Education Act 1998.

A technical clarification is also made in these Regulations to exclude overpayments from the meaning of Outstanding Liability (the total amount considered to be repayable by the borrower on the repayment date). The Explanatory Memorandum explains (at paragraph 4.5) that this is to “make it clear that any overpayment of a maintenance loan will be treated separately from the principal loan amount to which a borrower is entitled, and therefore will not form part of the total amount to which a partial cancellation is applied.”

Parent Act: Teaching and Higher Education Act 1998

Date Made: 24 June 2024

Date Laid: 26 June 2024

Coming into force date: 01 August 2024