Here is the full text from DfES and background to the situation re seconded nursing students. As far as I am aware, this applies to both degree and diploma students. I am awaiting clarification from DfES about this point.
> DH pay bursaries or awards of similar descriptions to their students under
> section 63 of the Health Services and Public Health Act 1968(b). This
> support is usually grant for fees, grants for maintenance and supplementary
> grants such as DSAs. Health care students who are eligible to receive NHS
> bursaries, that is to say a bursary or award of similar description bestowed
> under section 63 of the Health Services and Public Health Act 1968 (the
> "Act"), are excluded in the main from receiving any student support under
> reg 4(2)(c)(i), 10(7)(a) and 12(2)(a) of the Education (Student Support)
> (No. 2) Regulations 2002 (the "Regulations"). The exception, of course, is
> means tested bursary holders who are eligible to receive a reduced rate loan
> only under reg 19(12).
>
> A colleague has recently engaged in discussion with DfES lawyers and DH
> policy officials about support for NHS employees who are seconded to a
> course. DH have advised that seconded students have their fees paid under
> section 63 of the Health Services and Public Health Act 1968(b) but receive
> no other support from DH. DH have advised that although the secondee's
> tuition fees are paid under this Act, the support for tuition fees is not
> paid as a bursary or an award of similar description. Based on this
> information and advice from DfES lawyers, NHS employed students would be
> eligible for DSAs and other support under the regulations, although subject
> to satisfying other statutory requirements. Given that NHS secondees are
> still drawing a salary, in most cases they would only be eligible for the
> means-tested elements of student support.
>
> Therefore, for the time being seconded students should be treated as
> eligible for DSAs and other support under the Student Support Regulations.
> In the longer term, we will be discussing with DH who should be responsible for
> seconded employees and supporting them.
> .
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