'Pulling out of Govt’s Student finance day...' blog discussion

edited 14 May 2009 at 5:01PM in Martin's Blogs & Appearances & MoneySavingExpert in the News
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  • BruceyBonusBruceyBonus Forumite
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    Can someone explain to me why the Govt can do this?
    Is the loan between students and the SLC not a binding contract like any other? If the original terms of the loan say it will track inflation (and mentions no 0% minimum), then is this not a breach of the terms?

    I have a loan, but I'm not sure I have the small print surrounding the terms of it. Why is it the are able to do this?
    Thanks. SC
    It is a binding contract but it does say:
    You will find full details of the conditions for
    receiving student loans in the relevant Student
    Support Regulations. The conditions for repaying
    income-contingent loans are included in the
    following regulations (which may be replaced by
    later regulations)
    .
    • For England and Wales, the Education (Student
    Loans)(Repayment) Regulations 2000 as
    amended.
    • For Northern Ireland, the Education (Student
    Loans) (Repayment) Regulations (Northern
    Ireland) 2000 as amended.
    • For Scotland, the Repayment of Student Loans
    (Scotland) Regulations 2000 as amended.
    The bit in bold is important as The Education (Student Loans) (Repayment) Regulations 2009 allows them not to charge interest in specific years.

    My issue with this is that it would make the loan an unfair contract, as the government could vary the terms at any time as and when they want to.
  • littlemissmoneylittlemissmoney Forumite
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    :p Proud to be a MoneySaver! :p
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