Education (Student Loans) Act 1998 This Act amended the 1990 Education (Student Loans) Act to allow public sector student loans to be transferred to the private sector.
The text of the Education (Student Loans) Act 1998 was prepared by Derek Gillard and uploaded on 12 December 2020. |
Education (Student Loans) Act 1998 © Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen's Printer for Scotland. [page i] Section 1 Transfer of public sector student loans to the private sector 2 Regulations to prescribe certain terms of student loan agreements 3 Administration of public sector student loans 4 Corresponding provision for Northern Ireland
Schedule - Repeals
[page 1] An Act to make further provision with respect to public sector student loans. [27th January 1998] BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-
1 Transfer of public sector student loans to the private sector After section 1 of the Education (Student Loans) Act 1990 (c. 6) there shall be inserted - "1A Transfer of public sector student loans to the private sector [page 2] (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. 2 Regulations to prescribe certain terms of student loan agreements (1) Paragraph 1 of Schedule 2 to the 1990 Act (public sector student loans: principal, interest and payments) shall be amended as follows. (2) In paragraph 1(1), for paragraphs (b) and (c) there shall be substituted - "(b) require the terms of every agreement for a public sector student loan to include -(3) In paragraph 1(3), for "under sub-paragraph (1)(b) above" there shall be substituted "made in pursuance of sub-paragraph (1)(b)(i) above".(i) such terms relating to the time and manner of repayments,as are prescribed by the regulations." (4) For paragraph 1(4) and (5) there shall be substituted - "(4) Regulations made in pursuance of sub-paragraph (1)(b)(ii) above shall make such provision with respect to the rate of interest for the time being applicable to a public sector student loan as the Secretary of State considers appropriate to maintain the value in real terms of the outstanding amount of the loan. [page 3] (5) After paragraph 1(5) (as substituted by subsection (4) above) there shall be inserted - "(6) Nothing in any regulations under sub-paragraph (1)(b) above shall affect the terms of any agreement for a public sector student loan entered into before the date of the coming into force of the regulations."(6) Where an agreement for a public sector student loan was entered into before the commencement of this section, then as from that time - (a) the agreement shall have effect as if its terms included the terms prescribed in relation to such an agreement by regulations in force at that time under paragraph 1(1)(b) of Schedule 2 to the 1990 Act as amended by subsection (2) above; and(7) Paragraph 1(6) of Schedule 2 to the 1990 Act, as inserted by subsection (5) above, accordingly has effect subject to subsection (6) above. 3 Administration of public sector student loans (1) For paragraph 3 of Schedule 2 to the 1990 Act there shall be substituted - (2) In paragraph 3A of that Schedule (circulars to minors), for the words in sub-paragraph (a) from "such person" to "above;" there shall be substituted "person with whom arrangements have been made under section 1(1) of this Act;". (3) In paragraph 4 of that Schedule (restriction on disclosure of information), for sub-paragraph (1) there shall be substituted - [page 4] "(1) No person with whom arrangements have been made under section 1(1) of this Act shall provide or make available to anyone else (whether for consideration or not) any information held in connection with public sector student loans if the information is to be used for soliciting custom for goods or services."(4) Where any arrangements made with an existing lender under section 1(1) of the 1990 Act were in force immediately before the commencement of this section, then until such time as they are replaced by arrangements made in accordance with paragraph 3 of Schedule 2 to the 1990 Act as amended by subsection (1) above - (a) the arrangements shall continue to have effect as if made in accordance with paragraph 3 of that Schedule as so amended;(5) For the purposes of subsection (4) - (a) "existing lender" means a person or body falling within existing paragraph 3(1); and 4 Corresponding provision for Northern Ireland An Order in Council under paragraph 1(1)(b) of Schedule 1 to the Northern Ireland Act 1974 (c. 28) (legislation for Northern Ireland in the interim period) which contains a statement that it is made only for purposes corresponding to the purposes of this Act - (a) shall not be subject to paragraph 1(4) and (5) of that Schedule (affirmative resolution of both Houses of Parliament); but5 Financial provisions There shall be paid out of money provided by Parliament any increase attributable to this Act - (a) in the sums required by the Secretary of State for making payments under the 1990 Act;6 Consequential amendment and repeals (1) In section 578 of the Education Act 1996 (c. 56) (meaning of "the Education Acts"), at the appropriate place there shall be inserted - "the Education (Student Loans) Act 1998".(2) The enactments specified in the Schedule to this Act are repealed to the extent specified. [page 5] 7 Short title, interpretation, commencement and extent (1) This Act may be cited as the Education (Student Loans) Act 1998. (2) This Act shall be included in the list of Education Acts set out in section 578 of the Education Act 1996 (c. 56). (3) In this Act "the 1990 Act" means the Education (Student Loans) Act 1990 (c. 6). (4) The following provisions of this Act, namely - sections 2 and 3, andshall not come into force until such day as the Secretary of State may appoint by order made by statutory instrument, and different days may be so appointed for different provisions. (5) Apart from section 4 and this section, this Act does not extend to Northern Ireland.
[page 6] Section 6(2)
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