111.Section 73(f) of the Education (Scotland) Act 1980 gives a power to the Scottish Ministers to make regulations to pay allowances or loans in respect of persons in education. In practice, this is the legislative basis for government funding of student grants and loans in further and higher education.
112.Section 32 of this Act inserts a new section 74A into the 1980 Act. This gives Ministers the power to designate private providers of further and higher education on application: the effect of such a designation is that the provider may apply to the Scottish Ministers for particular courses of education it provides to be approved for the payment of allowances or loans by virtue of regulations made under section 73(f). An equivalent designation elsewhere in the UK equates to automatic designation for a provider under this section too.
113.Section 74A(5) gives the Scottish Ministers a regulation-making power to make provision about the process for applying for a designation; the charging of a fee by Ministers for applications; the process for Ministers to make a designation; the process of applying for particular courses of education to be approved for the payment of student support; and about the withdrawal of a designation and the effect of withdrawal (including provision to ensure continuity of funding for students at a provider whose designation is withdrawn). This power is subject to the negative procedure by virtue of section 133(2) of the 1980 Act.
114.Regulations under subsection (5) may also make different provision for different purposes, so for example could set different fee levels for different kinds of provider (e.g. those with charitable status or those in receipt of some public funds, as opposed to providers that are wholly private).
Commentary on Provisions Part 4 – Student Support Section 32: Designation of private providers of further and higher education