SALE OF STUDENT LOANS BILL
The purpose of the bill is to:
- enable the Secretary of State to conduct a programme of sales of the student loan portfolio
The main benefits of the bill are:
- to enable the most effective way to handle this large and growing Government asset, realising £6 billion in receipts over the next three years;
- transactions will represent good value for money, including a genuine risk transfer to the capital markets; and this should be reflected within the UK national accounts;
- the sales will make no difference to the terms and conditions for individual borrowers
The main elements of the bill are:
- to take powers for the Secretary of State to assign his rights and obligations in respect of income-contingent student loans to a third-party purchaser;
- to take powers for the Secretary of State to incur expenditure and make arrangements in connection with such an assignment;
- to take data sharing powers so that information on the loans held by HM Revenue & Customs can be disclosed to the purchaser
The Bill would apply to:
- England. The Government will work closely with the Devolved Administrations on the responsibilities that they have in this area.
Related Documents:
Existing Legislation in this area is:
- Teaching and Higher Education Act 1998 (and regulations made under section 22 of that Act)
- Commissioners for Revenue and Customs Act 2005
Comments:
If you have any comments on the draft programme or individual bill being proposed, you can email them to:
legislation@commonsleader.x.gsi.gov.uk
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