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Interesting clause in Student Loans repayment regulations
mikepaulden
Posts: 3 Newbie
Has anyone else noticed clause 76 (6) of The Education (Student Loans) (Repayment) Regulations 2009 No. 470?
It states that "The Authority [that is, the Student Loans Company] may determine that the applicable threshold or fixed instalment for a borrower is to be that for a country other than the borrower’s present country of residence".
Given the SLC's recent performance, this clause appears ripe for abuse. It appears to give the SLC the authority to determine at any time and for whatever reason that:
I became aware of this clause after my partner and I moved to Canada. We were each informed separately that the monthly default amount was £246 (Band E). When we pointed out that for Canada this monthly amount should be £196 (Band D), we were advised that "non response [to the default schedule letter] will result in a monthly repayment amount of £246.00 regardless of earnings or country of residence". So the SLC certainly appear to be enforcing this clause in some circumstances.
Is anyone aware of any limits to the SLC enforcing this clause more broadly?
It states that "The Authority [that is, the Student Loans Company] may determine that the applicable threshold or fixed instalment for a borrower is to be that for a country other than the borrower’s present country of residence".
Given the SLC's recent performance, this clause appears ripe for abuse. It appears to give the SLC the authority to determine at any time and for whatever reason that:
- the threshold above which a borrower must repay 9% of income is as low as £3000 (corresponding to a Band A country); and
- the monthly fixed instalment (the "monthly default amount") is £344.40 (corresponding to Band G).
I became aware of this clause after my partner and I moved to Canada. We were each informed separately that the monthly default amount was £246 (Band E). When we pointed out that for Canada this monthly amount should be £196 (Band D), we were advised that "non response [to the default schedule letter] will result in a monthly repayment amount of £246.00 regardless of earnings or country of residence". So the SLC certainly appear to be enforcing this clause in some circumstances.
Is anyone aware of any limits to the SLC enforcing this clause more broadly?
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