UK Government sells off £900m student loan debt


The loans, which were taken out by students who began courses between 1990 and 1998, have been sold to a debt management consortium for £160 million.
Universities Minister David Willetts said the private sector was best placed to collect the outstanding debt, allowing the Student Loans Company (SLC) to concentrate on administering newer loans.
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Hide AdOf 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.
The project to find a buyer for the remaining mortgage-style loans was launched earlier this year, when Mr Willetts said the plan would “maximise the value of one of the Government’s assets”.
The mortgage-style loans have a face value of around £890 million but the market value is significantly lower.
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