Education (Student Loans) Act 1998

1 Transfer of public sector student loans to the private sector

After section 1 of the [1990 c. 6.] Education (Student Loans) Act 1990 there 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 determined 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 other 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 assignee under an assignment under subsection (1) above;

• “specified” means specified in arrangements under this section.”