Guild slams student loan sell off

The Students’ Guild have condemned government plans to privatise student loans.

The government recently announced it would sell off student debt from the 1990s, opening the door for further privatisation which could mean higher interest rates.

Now the Guild has joined the chorus of condemnation from around the country, telling The Tab the move was “sudden” and “worrying.”

Alex Louch, VP Academic Affairs, said: “The sale of approximately £900 million of student debt from the public to the private sector has taken place with very little consultation and sets a worrying precedent.

Scenes from the 2010 student protests.

“The Students’ Guild will be carrying out an awareness campaign to explain the issues around this move to our members which will culminate in a debate between the University of Exeter Vice Chancellor, Sir Steve Smith, and NUS President Toni Pearce.

“This news preceded an announcement that the Department for Business Innovations & Skills has slashed the budget for student bursaries from £100 million to £50 million.

“These sudden and significant changes to student finance and I will be working with key partners in the Guild, the University and wider academic community to plan how we will react and protect the interests of our students.”

The Guild’s comments follow a protest in Westminster, organised by the Student Assembly Against Austerity group (SAAA).

26 campuses in total were part of peaceful action against the sell-off, with activities including ‘debt obstacle courses,’ banner drops, marches and occupations.

Debts from student loans are ever-increasing

They were supported by various MPs, including Caroline Lucas of the Brighton Pavilion constituency.

Lucas said: “Education is one of the most important rights we have, but the Government seems intent on treating it as a source of profit for private investors.”

The plans have been defended by David Willetts, the Universities Minister, who said that “students will not be affected by the privatisation.”

But Fiona Edwards of the SAAA has already announced that they will “cause a significant rise in interest rates.”

She added that the Government should “drop this outrageous policy immediately or expect further protests in the New Year.”