LAST CHANCE. Post your energy-related questions on the 'Ask An Expert' board before the end of the day. Experts from MSE's Utilities team look forward to answering some of them
MSE News: Government sells £900m of 1990s student loans

Former_MSE_Darryl
Former MSE Posts: 210 Forumite
"Nearly £900 million of student loans taken out during the 1990s have been sold off by the Government..."
Read the full story:
Government sells £900m of 1990s student loans

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
Government sells £900m of 1990s student loans

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
0
Comments
-
Sounds like a tax deductible scheme for the company holding the loan book. They just write off some bad debts every year to offset against any profit they make, so they don't have to pay any corporation tax.0
-
Universities Minister David Willetts says: "The sale of the 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 the book, ..."" ... which has a deteriorating value.""The sale will allow the Student Loans Company to focus on supplying loans to current students and collecting repayments on newer loans."Borrowers will remain protected and there will be no change to their terms and conditions, including the calculation of interest rates for loans."While the mortgage-style loans have a face value of around £890 million, their market value is significantly lower.Of the 250,000 loans sold, around 46% are earning below the repayment threshold, 14% of borrowers are still repaying and 40% are not repaying their loans in accordance with their terms.
Does this paragraph in fact mean that 86% of 1990s university students are incapable of or are deliberately avoiding repayment of student loans? Tell us more about this please.
No debt collector will ever call I suppose.From the late great Tommy Cooper: "He said 'I'm going to chop off the bottom of one of your trouser legs and put it in a library.' I thought 'That's a turn-up for the books.' "0 -
If they can't recover debt from UK residents, what chance do they have from Polish and Ukrainian students. Last year, about 8 out of ten prospective tenants I interviewed were overseas students waiting for their UK student loan, so can I "wait a few weeks for the deposit". Mostly Polish and Ukrainian, but there were Africans too, probably through the Commonwealth connection.0
-
40% [representing 100,000 of the most highly educated people in this land] are not repaying their loans in accordance with their terms.
I suppose, however, Erudio Student Loans have plans to improve that figure, as 14% [number of borrowers who are still repaying] of £890m falls somewhat short of the £160m paid (and that's before recovery costs are taken into account).
Did Vince Cable order a baseball bat count at Erudio Student Loans before these loans were sold on to them?0 -
This is the last tranche of the pre 1998 "mortgage style" loans to be sold off. Apparently, 69% of these type of loans have already been repaid, which seems to me to be quite a reasonable percentage, particularly with the higher repayment threshold that applies.0
-
If they can't recover debt from UK residents, what chance do they have from Polish and Ukrainian students. Last year, about 8 out of ten prospective tenants I interviewed were overseas students waiting for their UK student loan, so can I "wait a few weeks for the deposit". Mostly Polish and Ukrainian, but there were Africans too, probably through the Commonwealth connection.
As neither the Ukraine nor any African countries are part of the EU, students from these countries are ineligible for UK student finance.0 -
-
The_Groat_Counter wrote: »The poster said he/she interviewed the students as "prospective tenants" - so the poster is a landlord, property management agent or such like.
Thank you for pointing that out - I'd completely missed it. I'll edit my post - apologies.0 -
With a record like that, this government almost makes Paul Flowers look competent.
I suppose, however, Erudio Student Loans have plans to improve that figure, as 14% [number of borrowers who are still repaying] of £890m falls somewhat short of the £160m paid (and that's before recovery costs are taken into account).
Did Vince Cable order a baseball bat count at Erudio Student Loans before these loans were sold on to them?
Don't forget that 40% is only of this last 17% tranche, so less than 7% of the total of these sort of loans.0 -
I had a student loan 1993-5 under the original terms of The Student Loan Company which stated that any outstanding debt would be discharged (not due) for anyone over 50 when they took out the loan, on reaching age 60.
Is this selling off of old debts likely to mean the agreement terms I signed to can be overturned and now as a pensioner I may be hounded for a debt I had previously received written confirmation of being cancelled? Can the following quote taken from MSE article be trusted when debt collection firms/loan sharks get their hands on the debts?
"Borrowers will remain protected and there will be no change to their terms and conditions, including the calculation of interest rates for loans."0
This discussion has been closed.
Categories
- All Categories
- 338.8K Banking & Borrowing
- 248.6K Reduce Debt & Boost Income
- 447.6K Spending & Discounts
- 230.7K Work, Benefits & Business
- 600.8K Mortgages, Homes & Bills
- 171K Life & Family
- 244K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards