Student Loan Book to be privatised!!

ludmilla

http://www.newstatesman.com/economics/2013/06/danny-alexander-confirms-student-loan-book-will-be-privatised

In order to get a decent amount for the loan book, the government is expected to offer sweeteners to whoever purchases it. The most extreme of these would be the proposal, revealed earlier this month, to lift the cap on interest paid by people who took out loans between 1998 and 2012!!!!

Lokolo

This was previously mentioned in another thread.

https://forums.moneysavingexpert.com/discussion/4651191

Interesting to know the bit where you said "Revealed earlier this month.", the article is a good 3 months old.

Dunroamin

Many earler loans were sold off some years ago, with no changes to any terms and conditions.

TurnUpForTheBooks_2

Dunroamin wrote: »

Many earler loans were sold off some years ago, with no changes to any terms and conditions.

Might it be fair to suggest that the privatisation of earlier loans (in terms of the total debt within those loan 'books' sold to date) was but a spit in the ocean relative to say, any proposed transfer of the Repayment Plan 2 loan books ? The Repayment Plan 2 books are surely anticipated to contain order of magnitude greater debt attaching to 2012 and 2013 starters by the time they graduate? This is in part due to the trebling of tuition fees but it is also due to the continuing heavy privatisation of university accommodation which inflates student borrowings, and of course the Repayment Plan 2 loan book is all worryingly inflated by RPI + 3% interest rates which apply until graduation at least. That's great of course for securitisation agendae but it holds no hope for most students beyond a 'never never' financed start in life



Surely you are not suggesting that 2012 and 2013 starters can rest easy based on "no perceived change yet" to those toe-in-the-water/pathfinder privatisation model 'precedents' you've offered?

I am uneasy about such inferences.

As a baby boomer I am well familiar with the term 'never never' which was something frowned upon in our house, but also became well familiar with terms like IVA, discharged bankruptcy, mis-selling (of loans) and consequently, unenforceable credit agreements.

I am all for progress but is this really the way to go ? Have I already read in this forum that SFE and others firmly insist that any notion of mis-sold student debt is in fact neutralised by statute and thus the loans are all specially enforceable ?

So by this talk of privatisation of further loan books perhaps we are quietly being groomed if not to expect then to not be surprised that the lender's rights of statutory enforceability will get subrogated to privateers of unknown future cuddliness ?

If so, then this feature alone will further secure the asset (the debt) that private lenders may bid for at the next HMG fire-sale - they will pay HMG extra for it, and I am sure they might feel emboldened to test it at the earliest opportunity.

Why wouldn't they?

For the avoidance of doubt, I interpret the big picture as our young people being sold down the river. They ain't there yet, but they are all being enticed into the boats and once you've pushed off, the current is one way only.