Student Loans Company
The Student Loans Company (SLC) is a not for profit company in the United Kingdom that provides student loans. It is owned by the UK Government's Department for Business, Innovation and Skills (85%), the Scottish Government (5%), the Welsh Government (5%) and the Northern Ireland Executive (5%). The SLC is funded entirely by the UK government and the devolved administrations. It is responsible for both providing loans to students, as well as collecting loan repayments alongside HM Revenue and Customs (HMRC). The SLC's head office is in Glasgow, with other offices in Darlington and Llandudno.
The SLC was established in 1989 to provide loans and grants to students studying in the UK. From 1990 to 1998 these were mortgage-style loans, which were aimed at helping students with the cost of living and repaid directly to the SLC. From 1998 with the introduction of tuition fees in the UK, the SLC instead began providing loans under an income-contingent repayment (ICR) scheme, to cover the cost of the fees as well as living costs. Repayments for these loans were collected by HMRC via the PAYE tax system. The ICR loan scheme was replaced with a new ICR scheme in 2012 to include a longer repayment period following an increase in tuition fees.
Student loan book sales
In the late 1990s, the government sold two tranches of the mortgage-style loans to investors. Firstly in 1998 to Greenwich NatWest raising £1bn, and secondly in 1999 to Deutsche Bank and the Nationwide Building Society, also raising £1bn. The SLC's remaining mortgage-style loans, for which payments were mostly in arrears, were sold to a consortium, Erudio Student Loans, in 2013 for £160m. In 2014, the government indicated that it would start selling the SLC's £12bn book of 1998 - 2012 ICR loans to improve the UK public finances.
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