Education (Student Loans) Act 1998
| Year | 1998 |
Education (Student Loans) Act 1998
1998 Chapter 1
An Act to make further provision with respect to public sector student loans.
[27th January 1998]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Transfer of loans to private sector
1 Transfer of public sector student loans to the private sector.
1. After section 1 of the Education (Student Loans) Act 1990there shall be inserted—
1A ‘Transfer of public sector student loans to the private sector.
(1) A relevant lender may assign to any other person all or any of the lender's rights in respect of any public sector student loans.
(2) The Secretary of State may make such arrangements as he thinks fit for the purpose of facilitating, or otherwise in connection with, an assignment under subsection (1) above.
(3) Arrangements under this section may provide for the Secretary of State to make payments of any specified description which—
(a) are payable in such circumstances, and at such times, as may be specified, and
(b) are of such amounts as may be specified in, or dete rmined in accordance with, the arrangements.
(4) Such arrangements may authorise the Secretary of State in specified circumstances—
(a) to take an assignment from the purchaser of all or any of his rights in respect of any loan to which the arrangements relate, or
(b) to direct the purchaser to assign all or any such rights to some oth er person under subsection (1) above.
(5) Such arrangements may also provide for the appointment of an independent person approved by the Secretary of State with the function of investigating and reporting on any dispute between the purchaser and the borrower under a loan to which the arrangements relate.
(6) Subsections (3) to (5) above shall not be read as affecting the generality of subsection (2) above.
(7) In this section—
‘assignment’, in relation to Scotland, means assignation
‘the purchaser’ means the assignee under an assignment under subsection (1) above
‘relevant lender’, in relation to a public sector student loan, means the person who made the loan or the assign ee under an assignment under subsection (1) above
‘specified’ means specified in arrangements under this section.’
Terms of loans
S-2 Regulations to prescribe certain terms of student loan agreements. 2 Regulations to prescribe certain terms of student loan agreements.
(1) Paragraph 1 of Schedule 2 to the 1990 Act (public sector student loans: principal, interest and payments) shall be amended as follows.
(2) In paragraph 1(1), for paragraphs (b) and (c) there shall be substituted—
‘(b) require the terms of every agreement for a public sector student loan to include—
(i) such terms relating to the time and manner of repayments,
(ii) such terms relating to the interest to be borne by the loan, and
(iii) such terms under which the borrower's liability may be deferred or cancelled,
as are prescribed by the regulations.’
(3) In paragraph 1(3), for ‘under sub-paragraph (1)(b) above’ there shall be substituted ‘made in pursuance of sub-paragraph (1)(b)(i) above’.
(4) For paragraph 1(4) and (5) there shall be substituted—
(4) Regulations made in pursuance of sub-paragraph (1)(b)(ii) above shall make such provision with respect to the rate of interest for the time being applicable to a public sector student loan as the Secretary of State considers appropriate to maintain the value in real terms of the outstanding amount of the loan.
(5) The provision requ ired by sub-paragraph (4) above shall be framed by reference to such index of prices as may be specified in, or determined in accordance with, the regulations.’
(5) After paragraph 1(5) (as substituted by subsection (4) above) there shall be inserted—
(6) Nothing in any regulations under sub-paragraph (1)(b) above shall affect the terms of any agreement for a public sector student loan entered into before the date of the coming into force of the regulations.’
(6) Where an agreement for a public sector student loan was entered into before the commencement of this section, then as from that time—
(a) the agreement shall have effect as if its terms included the terms prescribed in relation to such an agreement by regulations in force at that time under paragraph 1(1)(b) of Schedule 2 to the 1990 Act as amended...
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