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Sale of Student Loans Bill

Sale Student Loans

Key Benefits The Bill would enable a programme of sales of the Government's Student Loans Portfolio. The sale of the student loan book is part of an ongoing Government strategy to transfer ownership of all public assets that are not essential to the Government's public service delivery objectives. The student loan book is worth around £18.1 billion and is expected to increase in value to £55 billion over the next ten years. The Government considers a programme of sales to be the most effective way to manage this large and growing Government asset. The proposed sales programme is expected to realise around £6 billion in receipts by the end of financial year 2010/11. This would be reflected within the UK national accounts. All transactions would include a genuine transfer of risk to the private sector, and would only proceed if they represent good value for money. The sales would make no difference to the terms and conditions for individual borrowers. The Government would retain control of all loan arrangements and regulations, including interest rates and repayment thresholds. The Government's intention is for the Student Loans Company to continue to administer all accounts. Purchasers would only be allowed to use data about borrowers for the specific purpose of managing the loans.

Bill Text

Explanatory Notes

Theme
Economic Stability

Related Documents

Budget 2007, para 6.62, page 151

Existing Legislation in this area

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 Bill you can email them to:

StudentLoans.Bill@dius.gsi.gov.uk