Another set of student loans to be sold – but don't panic
The Government has announced plans to sell off another group of English student loans. If your loan is being sold off, don't worry – you won't see any major changes.
The loans being sold are those taken out by English students who started uni in or after 1998 and became eligible to repay between April 2007 and April 2009 (you start making repayments the year after you graduate, if you earn more than the repayment threshold).
Universities Minister Sam Gyimah yesterday confirmed these loans were being sold, in a written statement. The Government hopes to sell the loans by the end of the year.
Some may by worried by the sale given what happened when loans taken out by students who began courses between 1990 and 1998 were sold off, but in this scenario, there is likely to be little change.
In fact, the first sale of English student loans from the period 1998-2012 (Plan 1 loans) took place last year – and at the time the Government suggested further sales would happen.
For more on how student loan repayments work, see our Should I repay my student loan? guide.
Will I see any change to the way I repay my loan?
In a word, no.
As Gyimah said in his statement: "As the Government has previously made clear, the position of all graduates, including those whose loans are part of a sale, will not change as a result of the sale.
"A sale will not alter the mechanisms and terms of repayment."
Whoever buys your loan won't have the ability to change repayment terms because of protections put in place by the Government.
You will continue to pay 9% of anything you earn over the annual income threshold, which is £18,330 before tax at the moment, but this changes every year.
If I have a problem or complaint about my loan, who should I contact?
The Student Loans Company will remain your contact for all issues relating to your loan – including repayment issues, problems and complaints. You won't have any direct contact with whoever purchases your loan.
Will this affect my credit report?
No. There will be no change to the fact that student loan repayments won't go on your credit file.
Those buying the loans also won't have access to your personal information.
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