Undergraduate student expansion not dependent on further sales of student loans

The Royal Society:

The Universities Minister David Willetts yesterday confirmed there was no "direct connection" between the plans to expand student places and the Government's intention to sell off student debts.

Appearing before the House of Commons Business, Innovation and Skills (BIS) Select Committee, Mr Willetts said the sell-off would act as "cash flow assistance", and chimed with the Coalition's plan to reduce the net debt. He noted that "if you can hold down Public Sector Net Debt, it makes it easier to have policies such as more students".

Funding the cost of expansion through the sell-off of loans, such as the 'new style' income-contingent student loans, has been likened in some quarters to a 'Ponzi' scheme. Both policies were mentioned in the Chancellor's Autumn Statement, which seemed to offset the costs of expansion of student places with the money generated by selling of parts of the post-1997 student loan book.

Posted by Jim Zellmer at January 17, 2014 12:29 AM
Subscribe to this site via RSS/Atom: Newsletter signup | Send us your ideas