Will Gordon Brown sell off student debt

ashcarrot

http://news.bbc.co.uk/1/hi/business/6453499.stm

ermmm I'm gonna guess they wont be charging inflation for interest or even starting payback at a certain threshold. I've paid all mine off but I see this story causing quite a lot of shouting.

Rafter

Banks sell each other debt all the time.

This is no different.

Your loan is still with the student loan company and the terms of the loan will still apply.

The only reasons the banks didn't run the whole thing in the first place was that they were worried but student boycotts of the banks that got the contract.

What will happen is that the student loan company will 'sell' £1 billion of loans on the money markets. A bank or group of banks will pay say £950 million for it and in return get all the future payments from the students who will continue to pay inflation. The bank will use the £50m margin they make to make them a bit more interest and cover the risk that a group of students may never be able to pay their loans back.

R.

ab7167

already happened several years ago. 2 of my loans were sold to Honours Student Loans, but my original terms and conditions still apply i.e. interest rates, threasholds for repayments etc.

I wouldn't have thought it was that much to worry about?

Ali

SparciaM

According to my last student loan statement I now owe £18,000 up from £16,000 that I borrowed and I've made a grand total of £75 towards paying it off. They also put that unless I earn more money the debt wont ever be paid off lol