---

Sale of Student Loans Bill

We have detailed external advice that there is a secure market for this kind of transaction. I think we can go forward with confidence on that basis. Several Members want to speak, so I shall move to a conclusion. Clause 1 allows the Government to sell some or all of our obligations relating to student loans, while retaining the power to require that purchasers administer the loans in a way that meets our requirements. Clause 2 gives the Secretary of State flexibility to include provisions in sales contracts to ensure that borrowers’ interests are fully protected. That means that borrowers of sold loans will be entitled to the same process of mediation to which all borrowers currently have access, further underlining the Government’s commitment to ensure that all borrowers are treated equally. The next two clauses extend that principle. Clause 5 allows the Government to insist that the Student Loans Company continues to fulfil its current functions and remains the institution that will contact borrowers about their loans. That is important. Clause 7 explicitly confirms an existing understanding that all student loans are exempt from the terms of the Consumer Credit Act 1974 because their characteristics differ substantially from commercial loans. In Clause 8, the Bill provides powers for Welsh Ministers in respect of Wales, equivalent to those it proposes for the Secretary of State in relation to England.