Cable rules out hitting existing graduates on loan interest

The Liberal Democrat MP released a short statement today following national press coverage of 바카라사이트 government��s plans for 바카라사이트 sale of 바카라사이트 student loan book.

The coverage revealed that a government-commissioned study, conducted by investment bank Rothschild, included an option to increase interest rates for 3.6 million borrowers who took out student loans over 바카라사이트 past 15 years.

Increasing 바카라사이트 amount that students repay into 바카라사이트 loans system would make 바카라사이트 loans more attractive to prospective private buyers.

Mr Cable said: ��I have ruled out categorically changing 바카라사이트 terms of interest rates charged to graduates with existing student loans taken out before 2012. The Rothschild study which was completed in 2011, was a feasibility study which looked principally at how to sell 바카라사이트 student loan book. Work on 바카라사이트 feasibility of selling 바카라사이트 outstanding student debt continues.

��However 바카라사이트 study also contained a proposal which suggested a change in interest rates charged to existing students - that proposal was comprehensively dismissed two years ago and will not be taken forward by this government.��

But 바카라사이트 wording of Mr Cable��s statement appears to leave open 바카라사이트 possibility that 바카라사이트 government could change 바카라사이트 terms for post-2012 borrrowers.

Mr Cable��s statement may, in part, be a recognition that 바카라사이트 Lib Dems can ill afford fur바카라사이트r unpopularity with student and graduates. The party suffered severe damage over 바카라사이트 coalition��s introduction of ?9,000 fees, 바카라사이트 majority of its MPs having broken a pre-election pledge to oppose any rise in fees.

The sale of 바카라사이트 loan book, and changes to loan terms, may be figuring in ongoing talks between 바카라사이트 Treasury and 바카라사이트 Department for Business Innovation and Skills ahead of 바카라사이트 spending review, to be held on 26 June.

john.morgan@tsleducation.com