Overview

This bill amends the Teaching and Higher Education Act 1998 to introduce non-interest-bearing student loan options in England. These new loans aim to provide students with an alternative to existing interest-bearing student finance, offering similar accessibility and benefits.

Description

The core of the bill is the addition of a new section (22A) to the 1998 Act. This section mandates the Secretary of State to create regulations establishing non-interest-bearing loans or other financial aid for students. These new facilities must mirror the objectives, purpose, and accessibility of existing student finance options, without being significantly more or less advantageous. The bill also makes a consequential amendment to section 42(4) to include the new regulations within the scope of the Act. The bill applies only to England and comes into effect two months after its passage, with the remainder taking effect upon passage.

Government Spending

The bill doesn't specify the exact financial implications. The cost will depend on the number of students opting for the non-interest-bearing loans and the terms of those loans as set out in the subsequent regulations. It is likely to increase government spending on student finance.

Groups Affected

The bill primarily affects:

• Students in England: They will have the option of accessing non-interest-bearing student loans, potentially reducing their overall debt burden after graduation.
• The UK Government: Increased expenditure on student finance is expected.
• Higher Education Institutions: May see changes in student applications or financial aid processes.

Powered by nyModel