Question to the Department for Education:

To ask the Secretary of State for Education, pursuant to the Written Statement of 6 February 2017, HCWS458, how the Government plans to securitise the remaining future repayments on student loans as a part of their planned sale process.

The sale of the rights to the remaining future repayments on the loans in scope of the sale of part of the student loan book, as set out in a Written Statement on 6 February, would be structured as a securitisation. In this structure, the loans are sold to a new independent English-domiciled company (“the Issuer”) which issues the notes to investors and makes payments of interest and principal on them.

This structure will enable the Government to maximise value from the sale for the taxpayer by creating separate tranches of securities attractive to a range of potential investors.