Part 2: Other education measures Financial support for students
The interest on student loans could deter some prospective students who feel unable to use interest-bearing loans for religious reasons. To address these concerns, the Government consulted on a non-interest bearing alternative model of student finance. The consultation was restricted to student finance in England.
	The Government response to that consultation set out the intention to introduce primary legislation to allow for alternative student finance to be offered alongside current student loans. Payment and repayment levels for this alternative student finance would be equivalent to those set for users of student loans.
	The 2015 White Paper re-affirmed the Government’s intention to introduce an alternative student finance product which would be equivalent to a student loan but avoid the use of interest.
	Before this Act, legislation only allowed for regulations to offer loans and grants to support students of higher and further education. This Act extends that power so that regulations can provide an alternative model of student finance alongside current student loans.