Fees & Loans

The Department may impose conditions when making grants to higher education institutions. In the case of institutions with an approved plan, the condition is that fees payable do not exceed the amount specified in the plan, and that the institution complies with the remaining parts of the plan.

In the case of an educational institution without a plan, the fees must not exceed the basic amount specified in regulations. Financial sanctions apply regarding the institution’s grant if the fee limit is exceeded.

International students are excluded from the limitation on fees. The basic and higher amounts may be changed by regulation.

Restrictions are placed on the Department’s power to discriminate between certain classes of courses in prescribing descriptions of courses covered by the sections. The basic and higher amounts must be laid before the Assembly and approved by resolution.

Plans authorizing charging more than the basic amount must be approved by the Department. The Department may make regulations regarding what is to be included. This may include provision for financial assistance to be provided for students.

The Higher Education (Northern Ireland) Order 2005 aimed to increase funding available to higher education institutions. It requires institutions charging fees above a basic rate to have an approved plan and allows students to take a cap year to pay the fees that would have been in place if they had started their course in 2005.

The Order enables higher education institutions to set their own fees, up to a basic amount specified in regulations. Institutions that charge above this rate may only do so if they have a plan approved by the Department. With an approved plan, they may charge up to a higher amount specified in the plan and in regulation.

The Department approves and monitors plans made by institutions that wish to set fees higher than the basic amounts.

There are provisions for student loans. Student loan debt does not form part of a bankrupt estate, preventing it from being written off on discharge and bankruptcy.

There is a provision for deferral of student fees through student loan payments made directly to institutions, deferring repayment of loans for students.

The student loans, Education (Student Loans) (Northern Ireland) Orders, 1990 and 1998, allow for student loans. The criteria for eligibility are set out in the regulations made by the Department. Eligible students are those attending courses of higher education of at least one academic year’s duration at institutions receiving support from public funds or designated institutions which satisfy eligibility criteria.

Courses of higher education mean courses at the principal universities, colleges of further education, and certain other universities and institutions in England, Wales, and Scotland. The 1998 amendment made further arrangements for financial support in respect of higher education and further education courses designated.

Regulations may determine whether a person is eligible for a grant or loan, prescribe the maximum amount, may prescribe categories of attendance on higher education courses or further education courses which may qualify, provide for terms and conditions; requiring payments to be suspended or terminated in circumstances, providing terms and conditions applicable to loans; authorizing grants in respect of fees payable in connection with courses to be paid directly to the institutions. Provisions may be made for appeals.

Student loans are to bear compound interest at such rates as may be prescribed; the manner of repayment is to be prescribed by regulations. Provision may be made for postponement of repayment obligations.

The rates of interest are to be no higher than those required to maintain the value in real terms of the amounts outstanding of the loan and shall at no time exceed the specified rate for low-interest rate loans.

Regulations may impose obligations on employers to make deductions for repayment of loans from salaries payable to borrowers, collection by other means, and transmission of the same to the Department.

They may impose on borrowers’ obligations to provide information, produce records relating to their income. They may provide penalties for non-compliance and provide interest on penalties.

Regulations may require payment by borrowers of interest and surcharges where loans are due but unpaid. Loans may be recouped through PAYE deduction.