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Selling student loans – Guardian comment piece

June 16, 2013

The Guardian have published my take on why the government is considering a sale of student loans given that many think it likely to be a bad long-term deal.

Why privatise student loans?

For a more technical explanation of the accounting behind student loans and how that affects the key public sector finance statistic of public debt, you can look at this post for wonke.com

 

 

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2 Comments
  1. Paul Bullock permalink

    The explanation for the suggestion of raising the student loan interest rate, is that it would make the whole student debt ‘portfolio’ a lot easier to sell off to investors and so reduce state debt. But that is itself only an expression of the desire to ensure that the state is removed as far as possible from the ‘economic’ sphere as a matter of principle; for it then continues the policy of pressing every conceivable ‘economic’ action into the hands of the private sector (NHS, Post Office, Forestry Commission etc ) essentially to the the financial aristocracy that run the country.

    It is most peculiar in this day and age that there is anyone who thinks the government is there to protect ‘the citizen’, rather than a system of systematic financial expansion, for which we provide the energy. Certainly the proposal is not ‘economic illiteracy’, it is consistent ‘forward thinking’ predation, worthy of the owners of the system.

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  1. No changes to interest rates, but what about repayment thresholds? | Critical Education

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