They need an “overhaul” BBC propaganda says, Public Sector sells off like this to the City is great but bankrupt universities in England will be able to;
1. Buy a share of the loan book, not all of it. They could also be paid for their services in part in debt.
2. Even a strong university like Leeds would go from having debt equivalent to about 38% of its current annual income to well over 100% within three years.
3. The idea is still in early stages and would also require careful design to avoid unwanted consequences – for example, the easiest way to cut loan defaults would be to, ADMIT FEWER WOMEN AND STUDENTS FROM POORER FAMILIES, since both groups tend to have lower lifetime earnings.
4. But if universities were to share some risk, the Treasury might allow them to charge more.
The student loan system is in crisis. A significant number are not being paid off, (£billions) and they will need to be treated in the same way as sub-prime assets. This means some financial body will take the outstanding loans on and pursue ex-students for the money +interest on the default.
Vote Yes Scotland to keep us out of the madhouse.