ERUDIO student loans help

anna2007

The only legislation that governs our MS loans are the Education (Student Loans) Acts 1990 and 1998 (and related Regulations), both of which were repealed in full when the T&HEA1998 was passed:

http://www.legislation.gov.uk/ukpga/1998/30/schedule/4/enacted

The new Act brought in the new ICR loans scheme, while the repealed Acts apply to students who took out student loans up to that point (the mortgage style loans scheme). Any subsequent legislation relates to the ICR loans only, as MS loans were replaced by this sysgem and are no longer available.

The T&HEA is only mentioned in the S&P agreement to say that these loans are excluded from the Assessor's investigations (as far as the provisions of the S&P agreement go), as the sale relates to MS loans (under the 1990 Act) only.

According to the S&P agreement, we need to formally request that a complaint is passed to the Assessor, once we've gone through Erudio's formal complaint process. I'm sure we could take it up with BIS if Erudio refuse, seeing as both sides legally agreed to it!

fermi

anna2007 wrote: »

The only legislation that governs our MS loans are the Education (Student Loans) Acts 1990 and 1998 (and related Regulations), both of which were repealed in full when the T&HEA1998 was passed:

Nearly, but not quite as the 1998 regulations made under the 1990 Act for mortgage style loans continued and continue to be in force, which is what people already on a course before the change in system continued to have their loans made under, while new students had to have the new type made under the T&HEA1998 regulation.

I know that very well, as I had some of those that bridged the transition.

But yes, all the loans sold to Erudio are made under the regulations made under the 1990 Act, no matter what date, so are not covered by the Sale of Student Loans act 2008.

In fact the first tranche of sales was waaaaaaaaaaaay back in the past, long before 2008.

http://www.hsloans.co.uk/about/

There is no need for the 2008 Act to facilitate the Erudio sale, nor is it covered by it's provisions.

anna2007

Sorry fermi, I meant both the 1990 and 1998 Acts were repealed, which is why I put the Regulations in brackets... reading it back it's not very clear, but I was in a bit of a rush

Mr_McGuffin

As I understand it, following repeal by the Teaching and Higher Education Act 1998, 'transitional arrangements' preserved the operation of the Education (Student Loans) Act 1998 in relation to the loans made under it, the terms of which were specified by the Education (Student Loans) Regulations 1998 :


http://www.legislation.gov.uk/ukpga/1998/30/contents
http://www.legislation.gov.uk/ukpga/1998/30/section/25

Teaching and Higher Education Act 1998

25 Transitional arrangements.

(1) Regulations may make provision—

(a) for any function which is or may be conferred under or by virtue of a relevant enactment—

(i) to transfer to, or otherwise be exercisable by, the designated person or body, or

(ii) to be replaced by such function exercisable by the designated person or body as is specified in the regulations, to such extent as is so specified;

(b) for any function exercisable by the designated person or body by virtue of paragraph (a)(i) to be exercisable in such modified form as is so specified;

(c) for the transfer to the designated person or body of rights or liabilities arising under or by virtue of any relevant enactment;

(d) for any such enactment to have effect with such modifications as are so specified;

(e) imposing on persons or bodies of any description so specified requirements with respect to the transfer and preservation of records

(3) In this section “relevant enactment” means any enactment contained in—

(a) the Education Act 1962,

(b) section 3 of the Education Act 1973, or

(c) the Education (Student Loans) Act 1990,

so far as that enactment continues in force by virtue of any savings made, in connection with its repeal by this Act, by an order under section 46(4).


The Teaching and Higher Education Act 1998 also gave the Secretary of State the power to make any further regulations under it 'as the Secretary of State thinks fit' :


42 Orders and regulations

(6) Any order or regulations under this Act may make different provision for different cases, circumstances or areas and may contain such incidental, supplemental, saving or transitional provisions as the Secretary of State thinks fit.

(8) Nothing in this Act shall be read as affecting the generality of subsection (6).


So this order preserved the operation of the loans as defined by the Education (Student Loans) Act 1998 and Education (Student Loans) Regulations 1998:


http://www.legislation.gov.uk/uksi/1998/2004/article/3/made

The Teaching and Higher Education Act 1998 (Commencement No. 2 and Transitional Provisions) Order 1998

Transitional and saving provisions
3.

—(1) The repeals of the 1990, 1996 and 1998 Acts shall not affect the continued operation of the provisions of those Acts or of any subordinate legislation made or to be made under them with respect to, or otherwise in connection with:

(a) loans made under the 1990 Act before the coming into force of the repeals of those Acts;

(b) the making of loans to any student who attends any course referred to in article 4; or

(c) loans made to any such student.

(2) Without prejudice to the generality of paragraph (1), the repeals of the 1990, 1996 and 1998 Acts shall not affect the continued operation of any such provisions relating to any of the following functions:

(a) the making of subordinate legislation;

(b) the assignment of public sector loans under section 1A of the 1990 Act;

(c) the making of arrangements (including arrangements which provide for the making of payments of any specified description) in connection with such an assignment.


It seems to me that the precise meaning and effects of the web of student loan legislation created since 1990 is most clear to lawyers specialising in what has become 'student loans law'. As far as I can see, any such experts are those who devised and wrote the legislation, and they all work for the government.

Mr_McGuffin

Incidentally, here is an example of a statutory instrument affecting the later income contingent loans and involving 'verification' of borrower income and the obtaining of personal and financial information. In March 2014 the then Minister of State for Universities and Science David Willetts changed the rules to permit the SLC, and therefore any later private sector owner of the loans, to demand such information 'as may be required' from borrowers not in employment:


Education (Student Loans) (Repayment) (Amendment) Regulations 2014

The Secretary of State for Business, Innovation and Skills makes the following Regulations in exercise of the powers conferred by sections 22 and 42 of the Teaching and Higher Education Act 1998


This amendment relates to the information the SLC can require from a borrower, by serving an 'information notice':

3. In regulation 23, after paragraph (2)(f) insert—
“(g)such other information about the borrower’s financial position as may be required to determine whether the borrower is in receipt of any income.”


The accompanying Explanatory Memorandum explains this addition and change:

2.1 These regulations amend the Education (Student Loans) (Repayment) Regulations 2009 (S.I. 2009/470) (the 2009 Regulations). They will introduce an additional power for the Student Loans Company to request financial information from borrowers who are in the UK and not matched with employment records to prove that they are not in a position to repay their student loan

Brooker_Dave

You would think that the original T&Cs signed up to by customers would over-rule any politically motivated changed years later?

Banksters

I agree with what you have wrote Fermi.

The only reason I can think that Teaching and Higher Education Act is mentioned in the Purchase Agreement then, must be if Erudio bought Mortgage Style loans and newer loans. As in, someone who had studied when the old loans were running but also took out a newer loan before the end of their studies?

The one important point out of most of this is the obligation for Erudio to treat people fairly. Which it has not been doing. Add in the misrepresentation over CRA's etc.

I will report back when I have the opinion of the Consumer Credit Act expert.

Kind regards to all. Keep up the good work.

anna2007

Banksters wrote: »

The only reason I can think that Teaching and Higher Education Act is mentioned in the Purchase Agreement then, must be if Erudio bought Mortgage Style loans and newer loans. As in, someone who had studied when the old loans were running but also took out a newer loan before the end of their studies?

There's the reason mentioned twice already (page 73 of S&P agreement)? There hasn't been a sale of ICR loans (yet). Anyone whose loans spanned the change in legislation remained on the MS scheme, and anyone who returned to HE after previously taking out MS loans will have had those loans transferred to Erudio or one of the other two earlier purchasers, while any ICR loans will still be with SLC and collected via HMRC.

fermi

Correct, Erudio did not buy any ICR loans. None have been sold yet to anyone.

People who spanned the transition period in their course of study did indeed continue on the loan type they started on, and did not have split types. I had mortgage style loans up to year 2000.

anna2007

Looking at the terms of reference for the Independent Assessor (page 73 of S&PA), paragraphs 4 & 5 refer to paras 11(d) & 11(e) above - it's numbered paragraph 3, what happened to the other 8 paragraphs?!

Either someone was very careless in drafting the agreement, or someone was very careless in making 'unofficial' redactions.