How are student loans funded?

agray2812
agray2812 Posts: 36 Forumite
in Student MoneySaving
Hi Martin,

Can you tell me where does the money for student loans come from?

I’m guessing private finance organisations?
If so, who is footing the bill of the unpaid millions of pounds of student loans?
Thanks.

Comments

  • adindas
    adindas Posts: 6,813 Forumite
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    edited 13 November 2019 at 9:52PM
    agray2812 wrote: »
    Hi Martin,

    Can you tell me where does the money for student loans come from?

    I’m guessing private finance organisations?
    If so, who is footing the bill of the unpaid millions of pounds of student loans?
    Thanks.

    It comes from taxpayer's money. I and many people in this MSE forum are also contributing to it.
  • Blackpool_Saver
    Blackpool_Saver Posts: 6,599 Forumite
    Bizarre, tax payers provide it, then their own money is lent back to them to study, then written off when they can't pay it back....
    Blackpool_Saver is female, and does not live in Blackpool

  • silvercar
    silvercar Posts: 46,955 Ambassador
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    The money always came from the taxpayers/ government. Once the number of students (and therefore the cost) escalated, student loans were introduced so those receiving would contribute more directly.

    It is written off for the majority of students, but it isn't money that was coming from the private sector. It's all paper accounting.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • sheramber
    sheramber Posts: 19,101 Forumite
    First Anniversary I've been Money Tipped! First Post Name Dropper
    The Government have sold off old loans

    https://www.ft.com/content/20e273ae-f7da-11e8-af46-2022a0b02a6c
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