‘Sky News can reveal that ministers will announce to the London Stock Exchange that the Government has agreed a deal to privatise a £900m portfolio of loans made to students who were enrolled at universities during the 1990s.
The disposal, to a debt recovery specialist, will be for a fraction of the debts’ face value, and encompasses mortgage-style loans that are the last of their kind still in public ownership.
The sale, which does not include Income Contingent Repayment loans like the ones currently offered, comes as student groups step up their protest over the disposal of the loan portfolios. The Coalition is drawing up plans to sell the entire outstanding student loan-book, which has a face value of roughly £40bn.
Investment bankers from Barclays and Rothschild were appointed by the Department for Business, Innovation and Skills (BIS) last month to oversee the sale, which more than 15,000 people have signed an online petition to oppose.’