Part 2: Other Education Measures Financial support for students Section 86: Power to make alternative payments
In England and Wales, student loans for higher and further education are provided pursuant to regulations made under section 22 of the Teaching and Higher Education Act 1998. This section amends section 22 of the 1998 Act to enable regulations to make provision for alternative student finance, alongside grants or loans. This additional type of student finance is called an "alternative payment".
	Section 22 of the 1998 Act sets out what regulations may include, for instance, eligibility criteria for student support, maximum amounts of support, the categories of attendance eligible for support, and the terms and conditions for repayment. The amendments to this section ensure that regulations dealing with alternative payments can make the same provision.
	The Government intends that regulations made under an amended section 22 of the 1998 Act support the provision of alternative student finance with a view to helping those who, for religious reasons, might feel they do not wish to access interest-bearing loans to support their education. The Government intends that alternative student finance are available to those of all faiths and none.
	Alternative student finance offers no financial advantage or disadvantage relative to equivalent student loans. This section also ensures that regulations can provide that bankruptcy will not cancel out any liability to make contributions, in the same way that a student loan liability is not cancelled by bankruptcy. This section ensures that alternative payment contributions can be dealt with outside of the consolidated fund: this requires the consent of HM Treasury in relation to England.
	This section also amends section 46 of the 1998 Act to reflect the extent of the amended section 22 of that Act.
	This section forms part of the law of the United Kingdom.