By Michael Stratford. Federal regulators next year will begin closer monitoring of companies that process student loan payments for the vast majority of borrowers to make sure they are following the law and not misleading consumers. Under a rule proposed earlier this year and set to be finalized Tuesday by the U.S. Consumer Financial Protection Bureau, federal regulators will have the authority to oversee a much larger swath of student loan servicers. Read more...
By . The plan to fund extra student places by selling the student loan book is “nonsense” in economic terms, according to the Institute for Fiscal Studies.
The highly respected IFS today delivered a stinging verdict on the financing behind the government’s move to abolish the cap on student numbers, announced by the chancellor, George Osborne, in his autumn statement yesterday. More...
By . The government has suspended 23 private colleges from the publicly-funded loans system after a surge in their student numbers.
David Willetts, the universities and science minister, said last week that the Department for Business Innovation and Skills had written to the 23 colleges telling them not to recruit any more students on Higher National Certificates (HNCs) or Higher National Diplomas (HNDs). More...
By . Ministers have been accused of “industrial scale incompetence” after a damning report on student loans was released by the public spending watchdog.
The National Audit Office said the government was “not well placed to secure value for money” on the £200 billion in loans that will be owed by 2043. More...
By Graeme Paton. The National Audit Office warns that the total university student loans bill will balloon to £200bn within 30 years as it emerges that thousands of EU students are avoiding repayments.
Almost half of students from mainland Europe may be failing to repay taxpayer-backed loans amid warnings of a £5 billion black hole in the public finances.
A report by the National Audit Office found that around 18,000 students from EU member states who took out Government loans for English university courses are in arrears or failing to provide earnings information. More...
By Graeme Paton. State offloads loans made to students who enrolled at university in the 1990s as part of drive to boost public finances.
The British government will announce on Monday it has agreed a deal to sell off a portfolio of student loans worth £900m, Sky News reported on Sunday, quoting people close to the situation.
The loans will be offloaded to an unnamed private debt collection agency, the broadcaster said, saying they would be sold for tens of millions of pounds, "a fraction of the debts' face value".
The deal would encompass mortgage-style loans made in the 1990s, the last of their kind still in public ownership, Sky said, but not include income contingent repayment loans of the kind currently on offer. More...
By Graeme Paton. The National Audit Office warns that the total university student loans bill will balloon to £200bn within 30 years as it emerges that thousands of EU students are avoiding repayments.
Almost half of students from mainland Europe may be failing to repay taxpayer-backed loans amid warnings of a £5 billion black hole in the public finances.
A report by the National Audit Office found that around 18,000 students from EU member states who took out Government loans for English university courses are in arrears or failing to provide earnings information. More...
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...
By Neil Johnston and Fiona Parker. A ‘National Day of Action’ took place this afternoon, coordinated by the Student Assembly Against Austerity (SAAA).
The protests, staged at 25 universities across the country including Oxford, Cambridge, Sheffield and LSE, were in response to the Government’s decision to privatise the student loan book as part of plans to raise £15 billion from the sale of public assets by 2020. More...
By Ann Carrns. If you are a former student having trouble paying back college debt, you may be relieved to hear that the Education Department has created new rules that will bolster borrower protections for federal education loans.
The new regulations will make it easier for distressed borrowers to get out of default and repay their loans, said Pauline Abernathy, vice president of the nonprofit Institute for College Access and Success, which supported the changes. More...
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