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Student Loan Scheme Act 2011

Matters of general application and miscellaneous matters - Miscellaneous matters - Interaction with loan contracts and other enactments

205: Loan contract enforceable against minor

You could also call this:

“Student loans are real even if you're under 18”

If you take out a student loan before you turn 18, the law treats you as if you were 18 when you signed the contract. This means that even though you’re younger, the loan contract is still valid and you have to follow its rules. The law that says this is part of the Contract and Commercial Law Act 2017. It doesn’t matter if you got the loan before or after this rule was made - it still applies to you.

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Topics:
Education and learning > Higher education Money and consumer rights > Banking and loans
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204: Commissioner may exercise rights in loan contracts to recall loans, or

"The government can ask you to pay back your student loan"

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206: Student loan contracts are not credit contracts, or

"Student loans are different from regular loans and have special rules"

Part 5 Matters of general application and miscellaneous matters
Miscellaneous matters: Interaction with loan contracts and other enactments

205Loan contract enforceable against minor

  1. A loan contract entered into by a borrower (whether before or after the commencement of this section) who is under 18 years of age must be treated, for the purposes of subpart 6 of Part 2 of the Contract and Commercial Law Act 2017, as if the borrower were aged 18 years.

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Notes
  • Section 205: amended, on , by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
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