The Education (Student Loans) (Repayment) (Amendment) (No. 2) Regulations 2008

PART 2 Amendments consequent on the Sale of Student Loans Act 2008 and amendments to Part 6

Amendment of Definitions

4.—(1) In regulation 2 insert in the appropriate place—

“(a) “the 2008 Act” means the Sale of Student Loans Act 2008;”;

“(b) “further transfer arrangements” has the meaning given to it in the 2008 Act;”;

“(c) “loan purchaser” in addition to the meaning given to it in the 2008 Act includes any person who has entered into transfer arrangements or further transfer arrangements with the Secretary of State or with another loan purchaser or both and who owns one or more student loans made pursuant to regulations under section 22 of the Act;”;

“(d) “transfer arrangements” has the meaning given to it in the 2008 Act;”;

“(e) “transferred loan” means any loan made to a borrower pursuant to regulations under section 22 of the Act and which has been the subject of transfer arrangements under the 2008 Act entered into by the Secretary of State;”.

(2) At the end of the definition of “Secretary of State” in regulation 2, add “and 3(6)”.

(3) At the end of the definition of “student loan” in regulation 2, insert “and 3(8)”.

Transferred loans

5.—(1) In the definition of “Secretary of State” in regulation 3(5), after the first occurrence of “regulation”, for “and regulation 4”, substitute “, regulation 4 and the definition of “transferred loan” in regulation 2”.

(2) At the end of regulation 3, insert—

“(6) Where these Regulations apply to a transferred loan, “Secretary of State” means, for the purposes of those regulations listed in paragraph (7)(a), the loan purchaser and, for the purposes of those regulations listed in paragraph 7(b), the Secretary of State acting on behalf of the loan purchaser (regardless of whether any person is also exercising functions on behalf of the Secretary of State pursuant to section 23(4) of the Act).

(7) For the purposes of this paragraph, the regulations listed are:

(a) regulations 10, 11(5)(d) (i),(ii), (e)(i),(ii), and 12A;

(b) regulation 9, regulation 11 (except 11(5)(d) (i),(ii), (e)(i),(ii)), regulations 13, 13A to 13F, and 60 to 67.

(8) Where these Regulations apply to a transferred loan, “student loan” means, subject to any provision of transfer arrangements, the total outstanding principal, interest, penalties and charges, owed by the borrower to a loan purchaser pursuant to these or any other Regulations made under section 22 of the Act.”

Repayments collected by HMRC in respect of transferred loans

6.—(1) In regulation 4(1) after “borrowers”, insert “(whether or not any loan of the borrower is a transferred loan)”.

(2) After regulation 4(2), insert—

“(2A) HMRC shall account for and pay to the Secretary of State such sums as are referred to in paragraph (2) regardless of whether the Secretary of State is entitled to retain such repayments or receives them on behalf of a loan purchaser.”

(3) In regulation 4(3), for “Repayments”, substitute “Payments to the Secretary of State”.

7.—(1) After regulation 4 insert—

“Transfer of other repayments due to a loan purchaser

4A.— (1) The Secretary of State must pay to a loan purchaser at such time and in such amount as may be agreed with the loan purchaser any sums which are paid directly to the Secretary of State in connection with transferred loans whether under Part 2 or 6.

(2) The Secretary of State may make aggregate payments to a loan purchaser in respect of all or a number of transferred loans owned by that loan purchaser.”.

8.—(1) At the end of regulation 9(2)(b), omit “and”.

(2) At the end of regulation 9(2)(c)(iii), omit “.” and insert —

“; and

(d) for the purposes of transferred loans, payment to the loan purchaser by the borrower shall be considered to have been received on the same date as payment is considered to have been received by the Secretary of State in accordance with this regulation.”.

Interest and Penalties

9.  In regulation 10(2)(a), for “regulation 13C or regulation 13D”, substitute “regulations 13C, 13D or 67”.

Costs incurred on behalf of loan purchasers

10.  For regulation 13D, substitute—

“13D.— (1) Where the Secretary of State incurs reasonable costs or expenses in taking steps to–

(a) serve an Information Notice on a borrower under regulation 13B(1),

(b) serve a Penalty Notice on a borrower under regulation 13C(4), or

(c) obtain the information requested in an Information Notice served under regulation 13B(1),

the Secretary of State may require the reimbursement of those costs or expenses by the borrower and may add them to the borrower’s loan account.

(2) Where the Secretary of State incurs such costs or expenses as are referred to in paragraphs (1)(a) to (c) in respect of a transferred loan, the Secretary of State is entitled to recover such costs and expenses as are incurred on behalf of the loan purchaser and may add them to the borrower’s loan account.

(3) Any sum added to the borrower’s loan account in accordance with paragraph (2) is owed to the loan purchaser.”.

Repayments of loans by persons required to submit a tax return

11.  In regulation 14, after “payable under the Taxes Acts”, insert “(whether or not any loan of the borrower is a transferred loan)”.

Repayments of loans through deductions by employers

12.  At the end of regulation 28, insert “(whether or not any loan of the borrower is a transferred loan).”.

13.  In regulation 35(7) after “Secretary of State”, insert “or loan purchaser (as the case may be)”.

Costs and expenses in relation to repayment by overseas borrowers

14.  After regulation 66, insert—

“Costs and expenses of the Secretary of State

67.— (1) Where the Secretary of State incurs reasonable costs or expenses in taking steps—

(a) resulting from a borrower’s failure to comply with regulation 60, to—

(i) obtain a borrower’s address outside the United Kingdom; or

(ii) obtain information about a borrower’s income during any period of residence outside the United Kingdom;

(b) to serve a notice under regulation 61(1) in any of the circumstances set out in regulation 61(2); or

(c) to recover the outstanding balance of the loan in full under regulation 66,

the Secretary of State may require reimbursement of those costs or expenses by the borrower and may add them to the borrower’s loan account.

(2) Where the Secretary of State incurs such costs and expenses as are referred to in paragraphs (1)(a) to (c) in respect of a transferred loan, the Secretary of State is entitled to recover such costs as are incurred on behalf of the loan purchaser and may add them to the borrower’s loan account.

(3) Any sum added to the borrower’s loan account in accordance with paragraph (2) is owed to the loan purchaser.”.