Nadine Craig, who was 14 at the time, was pulled into a lathe by a scarf she was wearing during a class in November 2007.
She had to be freed by two fellow pupils and required 40 stitches to her neck.
A hearing was held at Selkirk Sheriff Court last week and Sheriff Kevin Drummond heard that Nadine, now 20, had been warned the day before the incident not to wear her scarf.
However, SBC admitted a breach of the Healthy & Safety at Work Act as the machine in question,-a Colchester Cilt 600 lathe- did not have a proper guard on it and risk assessments on machines in the Craft and Design Technology classes had not been carried out for almost three years.
Reacting to the fine, a spokesperson for SBC commented: “As stated in court, SBC has expressed its unreserved apology to the former Galashiels Academy pupil who was involved in the accident in 2007.
“The Council has accepted its responsibility and a full safety review of technical classes in all secondary schools was carried out immediately after the accident.”