Overview

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

Description

The bill mandates the Secretary of State to create regulations establishing non-interest-bearing loans or other financial aid for students. These new financing options must mirror the goals, applications, and accessibility of existing student financing, without being significantly more or less favorable. The bill also updates the Act to include these new regulations. The act will only apply to England and will come into force two months after it's passed.

Government Spending

The bill doesn't specify exact figures for increased government spending. The introduction of non-interest-bearing loans will likely increase the overall cost to the government compared to interest-bearing loans, as the government will not receive interest payments. The extent of this increase will depend on the uptake of the new loan scheme.

Groups Affected

The bill primarily affects:

• Students in England: They will have access to a new type of student loan with no interest charges.
• The UK Government: Will experience increased financial burdens due to the elimination of interest income from student loans.
• Higher Education Institutions: May see a change in student numbers or student demographics as a result of the new loan options.

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