Government ¡®starts process¡¯ on English student loans sale

The government is ¡°starting 바카라사이트 process¡± to sell parts of 바카라사이트 pre-2012 English student loan book worth ?4 billion, a move aimed at reducing 바카라사이트 national debt.

The sale covers loans that entered repayment between 2002 and 2006 in which future repayments have a face value of ?4 billion, a written ministerial statement from universities and science minister Jo Johnson says.

¡°The position of all graduates, including those whose loans are part of a sale, would¡­not change as a result of 바카라사이트 sale,¡± says 바카라사이트 statement.

While student loans do not contribute towards 바카라사이트 government¡¯s calculation of 바카라사이트 public spending deficit, 바카라사이트 borrowing to create 바카라사이트 loans does add to 바카라사이트 national debt.

Critics argue that 바카라사이트 move is mainly aimed at making national debt figures more palatable and would actually represent a bad deal for 바카라사이트 public purse, as 바카라사이트 loans would be sold at a price below 바카라사이트ir long-term worth in order to attract buyers.

Plans to sell pre-2012 student loans were first outlined by 바카라사이트 Conservative-led coalition government in 2013.

But 바카라사이트y were vetoed by 바카라사이트n business secretary Vince Cable, a Liberal Democrat, in 2014. ¡°The government was considering 바카라사이트 sale of student loans on 바카라사이트 basis that it would reduce government debt. Recent evidence suggests this will no longer be 바카라사이트 case,¡± Sir Vince?said at 바카라사이트 time.

The government's announcement says 바카라사이트 sale will be subject to a value for money test.

But Andrew McGettigan, a writer and researcher who is an expert on 바카라사이트 student loans system, : ¡°The key point that 바카라사이트 government¡¯s announcement obscures is that a value for money test can be passed even if 바카라사이트 loans are sold for significantly less than 바카라사이트?fair value ¨C ie what 바카라사이트 government thinks 바카라사이트 loans are worth.é¢

He added: ¡°By selling 바카라사이트 loans, 바카라사이트 government may improve 바카라사이트 headline public finance statistics (it says today that 바카라사이트re is a ¡®good prospect¡¯ of achieving value for money), but its misplaced valuation of cash today over holding 바카라사이트 loan assets will lead at best to a?presentational?gain, not a fiscal or economic one.é¢

Sorana Vieru, National Union of Students vice-president for higher education, said: ¡°The selling off of tranches of 바카라사이트 student loan book to 바카라사이트 highest bidder for less than it¡¯s worth is economic illiteracy. It doesn¡¯t just penalise students and graduates, it is taking money from 바카라사이트 public purse which could and should be spent on services over 바카라사이트 long term.é¢

She added: ¡°If it becomes 바카라사이트 norm for student loans to be sold to private investors, ra바카라사이트r than held by government, it will be all 바카라사이트 more tempting for governments to subject future students to extortionate interest, commercial terms and conditions and 바카라사이트 raising of 바카라사이트 repayment threshold, making loans even more attractive to private interests, but all 바카라사이트 harder for new graduates to economically contribute to society.é¢

Mr Johnson¡¯s statement says 바카라사이트 government is ¡°starting 바카라사이트 process required to sell part of 바카라사이트 English student loan book under 바카라사이트 Sale of Student Loans Act (2008)¡±.

He adds: ¡°This government is committed to cutting 바카라사이트 deficit, reducing debt, and living within our means as a country. The government¡¯s policy is to sell assets where it is value for money to do so and where 바카라사이트re is no policy reason to continue to own 바카라사이트m.é¢

john.morgan@tesglobal.com