• Tue. Nov 28th, 2023

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Government launches first sale from the student loan book

The sale, which will have no impact on borrowers, is part of a drive to sell assets in a way that secures value for money for taxpayers.

The government has today (6 February 2017) announced that the process to start selling part of the English student loan book as previously announced and subsequently confirmed in the autumn statement in November, has begun.

The sale covers a selection of loans which entered repayment between 2002 and 2006 and it is expected to be the first of a planned 4-year programme of sales of loans issued before 2012, which is expected to return £12 billion to the Exchequer.

There will be no changes to the terms and conditions of the student loans sold. Repayments will not change as a result of the sale and HMRC and the Student Loans Company will continue to provide the same service they do now. Customers do not need to take any action.

People whose loans are part of a sale would receive an official government notification in the post following the sale but nothing will change for them and no response or action will be needed.

Universities, Science, Research and Innovation Minister Jo Johnson said:

This government is committed to bringing public finances under control, and returning the budget to balance.

As part of this we will look to sell assets where value for money to the UK taxpayer is assured.

This sale will have no impact on people with student loans and will only proceed once we are satisfied that it represents value for money for the taxpayer.

Chief Secretary to the Treasury David Gauke said:

The autumn statement reaffirmed our commitment to the sale of the student loan book if market conditions were favourable and I’m pleased the timing is now right to start the process.

This sale makes sense for taxpayers and will play an important contribution in our work to repair the public finances.

The sale of the student book is a part of the government’s aim to sell publicly-owned assets in a way that secures good value for money for taxpayers and reduce fiscal pressures.