Sale of Student Loans Act 2008

Document Number:2008 CHAPTER 10
Coming into force:Coming into force on the 21/07/2008
 
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An Act to enable the sale of rights to repayments of student loans; and for connected purposes.[21 st July 2008]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:—1 Sale of student loans(1) The Secretary of State may enter into arrangements (“transfer arrangements”) under which rights of the Secretary of State in respect of student loans are transferred to another person (“the loan purchaser”).(2) In subsection (1) “student loans” means loans made by the Secretary of State in accordance with regulations under section 22 of the Teaching and Higher Education Act 1998 (c. 30) (“loan regulations”).(3) Transfer arrangements may relate to—(a) specified loans or a specified class of loan;(b) some or all of the Secretary of State’s rights.(4) Transfer arrangements may include provision—(a) transferring to the loan purchaser an obligation of the Secretary of State in connection with a loan;(b) transferring to the loan purchaser the benefit of an obligation or undertaking of the borrower in respect of a loan (whether deriving from loan regulations or from arrangements agreed between the borrower and the Secretary of State in respect of the loan (“loan arrangements”));(c) for warranties or indemnities or other obligations of the Secretary of State;(d) enabling the Secretary of State to require a loan purchaser to make specified arrangements in connection with the administration of loans (whether by appointing a specified agent for specified purposes, or otherwise);(e) prohibiting the loan purchaser from making specified arrangements without the Secretary of State’s consent;(f) specifying consequences of the breach of a provision of the transfer arrangements.(5) Transfer arrangements shall have effect (and, in particular, a provision transferring rights or obligations is sufficient to effect the transfer).(6) Transfer arrangements may be made—(a) without the borrower’s consent;(b) without notice to the borrower.(7) The Secretary of State shall take reasonable steps to notify the borrower within three months of transfer arrangements taking effect.(8) A loan in respect of which transfer arrangements are made may be referred to as a “transferred loan”.2 Sales: supplemental(1) Transfer arrangements may include any provision that the Secretary of State thinks appropriate (in addition to provision specifically permitted by this section or section 1).(2) Transfer arrangements may include provision—(a) for repayments and other sums to be paid by the Secretary of State to the loan purchaser (having been collected by or on behalf of the Secretary of State) ,(b) for those payments to be made by reference to estimates, and(c) for repayments to or deductions by the Secretary of State in case of overpayment.(3) Transfer arrangements may include provision as to who is entitled to interest, penalties or charges imposed or incurred after the transfer.(4) Transfer arrangements may include provision for the Secretary of State to pay...

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