@ smartguys - Sadly I think it doesn't work at all for modular. I was up half the last night reading as much as I could find about the scheme and not once did it mention anything about modular.
I think basically they have decided that the workload of integrated schemes is equivalent to a university degree and as such you can now be awarded a BSc degree. That means it's classed the same as all other degrees and thus comes under the funding scheme that all degrees do. That is a loan by the government/student loans company for the fully tuition fees (up to £9K a year I think) plus a means tested maintenance allowance of up to £5K a year I think.
This only has to be pain back when you start earning over £21K a year and is on a sliding scale from there. At the lowest end I think it equates to a very small amount out of a £21K pay packet.
This is the reason it seems very much a step in the right direction. The fact that you don't have to pay back straight away would certainly take a lot of pressure off while looking for a first airline job or type rating or whatever.
However, with it being only applicable though a few integrated courses like CTC Wings it actually has much less appeal. You still get tied in to a costly course and the £9K a year loan won't go to far towards the full cost of these integrated courses.
Now if you could do it for a modular course it would go a long way to funding the bulk of training and thus in my opinion would be of much more value to those of us with very limited funding options.