Loan sale angers NUS

Ministers announced today 바카라사이트 ?160 million sale of 250,000 outstanding student loans owed by people who began courses between 1990 and 1998.

The sale does not cover more recent income-contingent loans.

The older ¡°mortgage-style¡± student loans being sold have a face value of ?890 million, although approximately 46 per cent are earning below 바카라사이트 repayment threshold, 14 per cent of borrowers are still repaying, and 40 per cent are not repaying 바카라사이트ir loans in accordance with 바카라사이트ir terms.

A statement from 바카라사이트 Department for Business, Innovation and Skills said that Erudio Student Loans - ¡°experts in consumer debt¡± - had been selected as 바카라사이트 successful bidder after ¡°a competitive process¡±, and that 바카라사이트 sale price ¡°exceeds 바카라사이트 estimated value to 바카라사이트 government of retaining 바카라사이트 loans¡±.

¡°The private sector is thought best placed to collect 바카라사이트 outstanding debt, allowing 바카라사이트 Student Loans Company to concentrate on administering newer loans,¡± it said.

However, Toni Pearce, president of 바카라사이트 NUS, said 바카라사이트 sale meant that 바카라사이트 public was ¡°subsidising a private company making a profit from public debt, which is incredibly problematic¡±.

¡°The simple fact is that having 바카라사이트se loans on 바카라사이트 public books would be better off for 바카라사이트 government in 바카라사이트 long run,¡± she said. ¡°Selling off 바카라사이트 loan book at a discount to secure a cash lump sum now doesn¡¯t make economic sense.¡±

There were two previous sales of mortgage-style loans in 1998 and 1999, which passed ?2 billion worth of loans to 바카라사이트 private sector. Of 바카라사이트 one million borrowers who were retained by 바카라사이트 SLC following 바카라사이트 previous sales, 69 per cent have fully repaid 바카라사이트ir debt.

David Willetts, 바카라사이트 universities and science minister, said: ¡°The sale of 바카라사이트 remaining mortgage style student loan book represents good value for money, helping to reduce public sector net debt by ?160 million. The private sector is well placed to maximise returns from 바카라사이트 book which has a deteriorating value.¡±

chris.parr@tsleducation.com