(1)For paragraph 3 of Schedule 2 to the 1990 Act there shall be substituted—
3(1)Arrangements made with any person under section 1(1) of this Act may in particular provide for—
(a)the making of public sector student loans by that person;
(b)the terms to be contained in the agreements for such loans, so far as not provided for by or under paragraph 1 above;
(c)the making of payments by the Secretary of State to that person for the purpose of enabling him to make such loans or otherwise in connection with such loans;
(d)the making of repayments by that person to the Secretary of State; and
(e)the provision by that person to the Secretary of State of reports with respect to the working of the arrangements.
(2)Any 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 disputes between persons borrowing or intending to borrow by way of public sector student loans and the person with whom the arrangements are made.”
(2)In paragraph 3A of that Schedule (circulars to minors), for the words in sub-paragraph (a) from “such person” to “above;” there shall be substituted “person with whom arrangements have been made under section 1(1) of this Act;”.
(3)In paragraph 4 of that Schedule (restriction on disclosure of information), for sub-paragraph (1) there shall be substituted—
“(1)No person with whom arrangements have been made under section 1(1) of this Act shall provide or make available to anyone else (whether for consideration or not) any information held in connection with public sector student loans if the information is to be used for soliciting custom for goods or services.”
(4)Where any arrangements made with an existing lender under section 1(1) of the 1990 Act were in force immediately before the commencement of this section, then until such time as they are replaced by arrangements made in accordance with paragraph 3 of Schedule 2 to the 1990 Act as amended by subsection (1) above—
(a)the arrangements shall continue to have effect as if made in accordance with paragraph 3 of that Schedule as so amended;
(b)existing paragraph 3(2) and (6) shall continue to have effect in relation to the existing lender and any public sector student loans made by him; and
(c)in relation to any time when section 2 above is not in force, existing paragraph 3(4) shall also continue so to have effect.
(5)For the purposes of subsection (4)—
(a)“existing lender” means a person or body falling within existing paragraph 3(1); and
(b)any reference to an “existing” provision is a reference to that provision of Schedule 2 to the 1990 Act as in force immediately before the commencement of this section.