Photograph courtesy of 401 Calculator
The government is to sell off £900 million of student loans to the private sector in its continued effort to balance the nation’s finances.
The loans that are to be sold off were taken out by students between 1990 and 1998 and are mostly either in deferment or arrears, with the government unlikely to get close to the £900 million face value for the portfolio in the marketplace. The government plans to complete the sell off by 2015, although Sky News has reported that the sale will begin on Monday.
In order to make the loan book more attractive to the market, a secret report for the government by Rothschild said that the interest rate cap on the loans should be increased or removed altogether, essentially retrospectively increasing the fees paid by previous students.
Students across the country took to the streets to protest against the sell-off on Wednesday, with action coordinated by the Student Assembly Against Austerity, with many concerned the action will increase the burden of debt on students and graduates.
