Hey there! Sign in to join this conversationNew here? Join for free

Is your student loan debt up for private sale? watch

    • TSR Community Team
    • Thread Starter
    Offline

    17
    ReputationRep:
    TSR Community Team
    A story from the BBC yesterday claims that students loans taken out before 2012 are going to be sold to the private sector.

    The government has already began the process, and announced that loans made to students in England between 2002 and 2006 will be put up for sale first, closely followed by other pre-2012 loans, with the aim of raising £12bn.

    Universities Minister Jo Johnson said the sale would have"no impact on people with student loans" - the rates of repayment for former students will remain the same, but the interest on the loans will become an income for private investors.

    The National Union of Students has commented it was an "ugly move on students".

    Do you think it's fair that the 'rich will get richer' off of student's interest?
    • Aston Villa FC Supporter
    Offline

    3
    ReputationRep:
    Aston Villa FC Supporter
    (Original post by discobish)
    A story from the BBC yesterday claims that students loans taken out before 2012 are going to be sold to the private sector.

    The government has already began the process, and announced that loans made to students in England between 2002 and 2006 will be put up for sale first, closely followed by other pre-2012 loans, with the aim of raising £12bn.

    Universities Minister Jo Johnson said the sale would have"no impact on people with student loans" - the rates of repayment for former students will remain the same, but the interest on the loans will become an income for private investors.

    The National Union of Students has commented it was an "ugly move on students".

    Do you think it's fair that the 'rich will get richer' off of student's interest?
    No
    Offline

    12
    ReputationRep:
    This move actually makes sense as a short-term move. As long as they keep that promise of not changing the terms and conditions for repayments(I am skeptical), and the Student Loan Company remains in charge of collecting repayments, students shouldn't be affected. And this is an effective means of creating considerable short-term income for the government.

    However, it's now a question of whether they really needed this short-term burst, and whether it's worth the loss of long-term income.
    Offline

    3
    ReputationRep:
    The T&Cs of the loan will remain the same including the repayment so it won't make much difference.
 
 
 
Poll
Do you agree with the PM's proposal to cut tuition fees for some courses?
Useful resources
AtCTs

Ask the Community Team

Got a question about the site content or our moderation? Ask here.

Welcome Lounge

Welcome Lounge

We're a friendly bunch. Post here if you're new to TSR.

Groups associated with this forum:

View associated groups

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.