Student Loan Scheme Act 2011
The Student Loan Scheme Act 2011 removes the end-of-year assessment process for most borrowers, and increases the use of online services.
The Student Loan Scheme Bill 2010 was introduced into Parliament on 27 August 2010. It received its first reading on 14 October 2010 and its second and third readings on 16 August 2011.
The Act reforms the way student loans are repaid by removing the end-of-year assessment process for the majority of borrowers, and the way borrowers manage their loans by increasing use of online services. It also rewrites the Student Loan Scheme Act 1992 and replaces the Student Loan Scheme Act 1992 from 1 April 2012.
Several changes were made to the bill at the Select Committee stage. The main changes were to delay the application of certain provisions until 1 April 2013 to give Inland Revenue more time to implement the changes in the bill. The Government also introduced Supplementary Order Paper No 200 at the Select Committee stage giving Inland Revenue the ability to recall student loans in cases of significant default in the repayment of a loan.
The resulting Act received Royal assent on 29 August 2011. This Act also amends a number of other Acts, including the Student Loan Scheme Act 1992, the Credit Contracts and Consumer Finance Act 2003 and the Tax Administration Act 1994.