Julie Cooper – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Julie Cooper on 2016-04-08.

To ask the Secretary of State for Business, Innovation and Skills, what steps he has taken to ensure that the sale of the pre-2012 income contingent repayment student loan book will not affect the amount of debt current graduates owe.

Joseph Johnson

The Sale of Student Loans Act 2008 prevents Government from treating less favourably borrowers whose loans are sold, compared to the treatment of borrowers whose loans remain on the Government’s books.

After a sale, the Government continues to finance student loans and collect repayments through HM Revenue and Customs and the Student Loans Company. Purchasers will have no direct relationship with borrowers, and no power to amend the terms of repayment.