Loan sale angers NUS

By Chris Parr. The sale of student loans to a consumer debt company “doesn’t make economic sense”, according to the National Union of Students. 
Ministers announced today the £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 the repayment threshold, 14 per cent of borrowers are still repaying, and 40 per cent are not repaying their loans in accordance with their terms. More...