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The Student Loan Book Sell-Off: The Need for Supervision

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It was announced last week that the U.K. Government has decided to sell a certain amount of student loans to private entities, in the hope of recouping up to £12 billion for the national coffers. The first sale, which covers a selection of loans which entered repayment between 2002 and 2006, is the first in a four-year programme of sales covering loans issued before 2012 (when the value of the loans dramatically increased ). In this short post, we will see that there is an increasing amount of opposition to this sale, from a number of standpoints, and that there needs to be an increased level of scrutiny after the sale has been completed. It has been recognised that the previous sales of ‘tranches’ (French for ‘slice’) of the student debt have resulted in incredible and serious errors, which when understood in combination with economic concerns regarding the value or worth of the sale to the taxpayer, means that there must be an increased level of scrutiny from all concerned, inclu...