Thank you for contacting me about the sale of the student loans book.
I understand your concerns but please be assured that the sale of part of the English student loan book will not have an impact on current, past or future students or graduates. This sale follows the usual policy and approach to the sale of assets.
I am reassured that there will be no changes to repayments or the terms and conditions of the loans sold. Investors will have no right to change loan arrangements and will never be able to contact borrowers. Similarly, policies on student finance and higher education will not be altered by this sale and I understand the Government will continue to offer the same financial support to students.
It has been made clear that a sale will only proceed subject to market conditions and providing it will achieve value for money for the taxpayer. If the taxpayer can get a better deal by selling the assets, it makes sense for us to do so.
I am proud of the Government’s commitment to cutting the country’s deficit and I support the selling of assets when it is good value for money to do so and there is no policy reason to continue owning them. The planned four-year programme of sales of loans is expected to return £12 billion. This will free up headroom for investment in policies that have great economic or social returns, and reduces fiscal pressure, working towards making sure our economy works for everyone.
Thank you again for taking the time to get in touch.