Students protest against the privatisation of student loans

Warwick students have protested against the sell-off of the student loan book which could see an increase in the cost of tuition fees.

The protest took place on library bridge Wednesday 20 November as part of a day of national protest across campuses against the privatisation of student debt.

Action was sparked by the government decision to sell £890m of student loans to a debt management group for £160m. The sell-off covers loans taken out between 1990 and 1998.

Concern that the decision will lead to increased financial burden on students and graduates has spread across the country. Many fear that the sell-off opens the door to a retrospective rise in the cost of student debt.

Ministers however have assured that the terms and conditions of the loans would not change. Both universities minister, David Willetts, and the business secretary, Vince Cable, have said that any company that buys student debt will be prevented from increasing interest rates on loans.

Miguel Costa Matos, a second-year PPE student who led the protests, said: “Students should be sceptical of the guarantee not to lower repayment thresholds or interest rates.

“As competition pushes wages at the top up and wages for the young down, student debt will become more unsustainable and the pressure will be to change the conditions of our loans.”

National Union of Students president Toni Pearce said the move was “extremely concerning” as it would see “the public subsidising a private company making a profit from public debt”.

Mr Matos added: “It’s not right to do it on students’ backs. We need to find a new way of funding Higher Education other than loan-backed tuition fees.”

Government plans intend to sell the entire block of student debt, which has a face value of £40bn.