Sale of student loans
1
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”.