Government to sell off £900 million of student loans to private debt collection firm

[joebloggs]

:mad: after under valuing the PO by over £2bn, now they are selling debts off for a fraction of there value, how incompetent could this Tory government be :doh

have a face value of around £900 million but the market value is likely to be significantly lower.


when Universities Minister David Willetts said the plan would "maximise the value of one of the Government's assets".:doh

http://www.mirror.co.uk/news/uk-news/government-sell-900-million-student-2848089

[Terpe]

I understand these are 'old' student loans that have failed to be paid back for whatever reason. Probably the government doesn't have the structure or finance in place to investigate and 'collect'.

Same thing happens to all banks/credit cards etc with personal credit debts. Just write off and sell to collection agences for pennies.

[andy222]

:doh

[Dedworth]

Toxic loans half of these students have no intention of paying them back. How a comic like the Mirror can state they are worth £900 million is beyond me, they ought to stick to reporting X Factor and reality TV shows

[joebloggs]

:icon_lol: come on the gov can't get the money from them, if the gov cant who in their right mind would buy the debt then, obviously they think they can :biggrin:

the CSA could take money straight from the employer, why cant the gov then :crazy: take it from their benefits if they are not working :NoNo:

as for the £900,000,000 - if you use the high figure of £40,000 thats only 22.500 students , £20k of debt = 45,000 students.



Clugston says a student on a three-year course with tuition fees of £9,000 a year and getting a maintenance loan of £3,575 would leave £43,515 in debt. This is based on a rate of 6.3 per cent (RPI plus three points). After university, they start making repayments once their salary is over £21,000. At present, repayments for someone on £21,000 are £34 a month.

http://www.thisismoney.co.uk/money/cardsloans/article-2326560/Debt-timebomb-85-cent-students-pay-loans.html

repayments of £34 a month :laugher: no wonder they never repay, its probably what they spend going out over a weekend, so what if they cant buy a house, pay your debts of first :doh

[Terpe]

How does any creditor get money from the debtor who either won't pay or can't pay ?

Not as easy, or cost effective, as you might believe.......

[andy222]

This might go some way to explaining why the government are on the look out for nurses from spain and portugal. The students here cant afford the high university fees set by this government. My personal view is students are scared to go into debt for university fees because there is no job at the end of it. Most student nurses that I have met are foreigners.

[imagine]

who's fault is it in the first place, a society of borrowers ,credit and loans,

was it not a student grant once upon a time, why change it to loans when a large proportion of students will never pay it back,

our goverments have encouraged debt as well as creating debt

[andy222]

IMO Students who were born here should have free university tuition to encourage home grown talent. University places should go to people who are born here first.

[joebloggs]

How does any creditor get money from the debtor who either won't pay or can't pay ?

Not as easy, or cost effective, as you might believe.......

the gov has more powers than any debt collection company, take it straight from their wage or their benefits

they've gained from going to Uni, they should repay the loan they agreed to, I've got credit cards and a loan, I've not missed one payment, all this toxic debt it's :laugher:, wish i could dump my debts, if you don't repay then you should be refused any sort of credit again., so let them try and get a mortgage to buy a house when they defaulted on a loan

[Terpe]

the gov has more powers than any debt collection company, take it straight from their wage or their benefits

they've gained from going to Uni, they should repay the loan they agreed to, I've got credit cards and a loan, I've not missed one payment, all this toxic debt it's :laugher:, wish i could dump my debts, if you don't repay then you should be refused any sort of credit again., so let them try and get a mortgage to buy a house when they defaulted on a loan

If I thought you'd be interested I'd help speed up your own research.

Governments do not have more powers.
But HMRC and local governments do push through to an end-game position that brings bankruptcy if they believe strongly enough there is any possibility of a return.

[joebloggs]

no need for bankruptcy, if the CSA can do this why not the gov :NoNo:

https://www.gov.uk/child-maintenance-for-employers/deduction-from-earnings-order-deo

[Terpe]

no need for bankruptcy, if the CSA can do this why not the gov :NoNo:

https://www.gov.uk/child-maintenance-for-employers/deduction-from-earnings-order-deo

1. CSA is a government agency

2. The subject is Student Loans. Do some research if you're interested in how the debts are structured

[joebloggs]

1. CSA is a government agency

2. The subject is Student Loans. Do some research if you're interested in how the debts are structured

i know the CSA is a gov agency, well why don't they get the CSA to collect the money, instead of selling off £900m worth of loans for £160m !

debt is debt, if i dont pay the debts off i owe i know what will happen, so if i student agrees to a loan they should know what will happen if they don't pay.