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Sale of Student Loans Bill

We have had a constructive debate. First, let me confirm that the proposition in Lords amendment No. 10 was always the Government's intention, and that this is a minor drafting amendment. We have throughout the passage of the Bill also made clear our current intention that the Student Loans Company will take on the responsibility of the ongoing relationship with the borrower, and that it will take the ““reasonable steps”” to inform all affected borrowers on behalf of the Secretary of State. On the point about the importance of clarity in that relationship, and the need not to create a multiple set of relationships, we need to be clear that the SLC will carry out that function, and that we do not expect onward sales to take place. Under amendment No. 4, there is the further proposition that the initial loan purchaser will also be obliged to ““take reasonable steps”” to let borrowers know that their loan has been sold. That is there as a belt-and-braces response, but I do not envisage that way forward as ever being necessary. The hon. Member for Reading, East (Mr. Wilson) asked what is meant by taking ““reasonable steps””. We would expect a letter to be written to each affected borrower at the current address held by the SLC. That is an appropriate response because, importantly, borrowers are under an obligation to keep the SLC informed of their up-to-date address—a fact that is relevant to a point made by the hon. Member for Bristol, West (Stephen Williams).