Student Loans – Protected!
Good news, everyone! – the Government promises that student loan repayment conditions for all pre-2012 entry students won’t change (although may still be sold off to private investors). Loans from post-2012 students (9k fees) have had no plans for sale, so far.
Earlier in the summer, there was some worrying news that the government was considering changing the repayment conditions for students loans, with the aim to sell them off to private investors.
You can read my original blog on the subject to find out more about the system and what the changes could mean, but there is some good news on the horizon. As so many students (especially those from Southampton) shared around a petition against these changes, we have now had a response from the government on their plans.
The Treasury department have stated:
“The Sale of Student Loans Act 2008 places a requirement on Government to ensure that borrowers whose loans have been sold are not in a worse position than would have been the case had the loans not been sold (…) We have also made clear that the method of determining interest rates for borrowers who took out pre-2012 loans will not be changed by this Government, irrespective of whether a sale of the loans is taken forward.”
Furthermore, National Union of Students (NUS) President, Toni Pearce, and Vice President Higher Education, Rachael Wenstone, have met with David Willetts, the Minister for Universities and Science on the topic. Willetts clarified to the NUS:
“[T]he Government received proposals that the cap on interest rates on student loans should be removed as part of a possible sale of the loan book; the Government comprehensively dismissed those proposals… In the event of a sale, we expect that the Student Loans Company would continue to administer the loans and would be the point of contact for borrowers.”
Whilst SUSU is not part of the NUS, you can read the blog from Toni Pearce on the topic here, which notes the progress they have made in their conversations with the Government on this issue – also highlighting that the student loans of post-2012 entry students haven’t been discussed – and will most likely become a similar topic of debate in future years.
Cheers for reading – David Gilani – SUSU President