The sale included loans issued by English Local Authorities
under the previous (pre-2012) system, specifically those
that entered repayment between 2002 and 2006.
Throughout the process, Government’s decision on whether to
proceed remained subject to market conditions and a final
value for money assessment. I can update Parliament that
the transaction achieved a value of £1.7bn, exceeding the
HMT Green Book valuation.
Ministers will shortly be laying before Parliament a report
on the sale in accordance with Section 4 of the Sale of
Student Loans Act 2008. This will provide more detail on
the sale arrangements and the extent to which they give
value according to HM Treasury Green Book rules.
In advance of that, I would like to reiterate the points I
have made previously about the impact of the sale on
borrowers and on Government policy.
The position of all borrowers, including those whose loans
have been sold, will not change as a result of the sale.
The sale does not and cannot in any way alter the
mechanisms and terms of repayment: sold loans will continue
to be serviced by Her Majesty’s Revenue and Customs (HMRC)
and the Student Loans Company (SLC) on the same basis as
equivalent unsold loans. Purchasers have no right to change
any of the current loan arrangements or to contact
borrowers directly. Those whose loans have been sold will
be notified in writing by the Student Loans Company within
3 months, for information only. No action will be required.
Government has no plans to change, or to consider changing,
the terms of pre-2012 loans.
