Student Loan Book: Sale Debate
Full Debate: Read Full DebateDepartment: Department for Business, Energy and Industrial Strategy
Tom Pursglove
Main Page: Tom Pursglove (Conservative - Corby)Department Debates - View all Tom Pursglove's debates with the Department for Business, Energy and Industrial Strategy
Student Loan Book: Sale
Tom Pursglove Excerpts(5 years, 6 months ago)
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Mr Gyimah
The repayments are collected through the tax system, and that does not change at all. All that changes is that the benefits of the future income stream now accrue to someone else. That is done not only by Governments around the world, but by businesses. It is a simple fact that if we can capture the value of an uncertain income stream today at a reasonable price, it makes sense to do so.
Tom Pursglove (Corby) (Con)
Have lessons from previous loan book sales informed the decision making on this tranche?
Mr Gyimah
I caught just the tail end of that question. If I understood it correctly, my hon. Friend was asking about the process and the decision making in the past. We have been dealing with this for two decades in this place; under the last Labour Government there were mortgage-style loans, where loans were sold to private investors, who could contact students directly and chase them for the money. That has now changed under this system.