The Government Is Not Selling Student Loans
Hon Max Bradford
Minister for Tertiary Education
24 June 1999
The Government Is Not Selling Student Loans: Bradford
Minister for Tertiary Education Max Bradford said today that the Government had no intention of selling student loan accounts to the private sector.
Mr Bradford's comments come after claims from the Alliance that securitisation of student loans is being considered.
"I understand that over the past few years there have been a number of overtures made to the Government from financial organisations in relation to selling student loan accounts," Mr Bradford said.
"However, it is not an option being looked at by this government. The Alliance has got it wrong again and they are just trying to beat up another issue for election year," Mr Bradford said.
To ensure the student loan scheme continues to operate in an effective and fair manner the following issues were examined as part of a review last year:
· The use of student loan entitlements for
non-education related purposes;
· The access of young students to student loans without parental consent;
· The burden of long student loan repayment periods for some borrowers;
· Size of total student loan debt.
"The option of securitisation has been mentioned in the review fleetingly. Many other options have also been mentioned in the review with the goal of reaching the above objectives," Mr Bradford said.
"During the review the Treasury advised that, "past work on securitisation has concluded that the cost of selling the risk posed by the student loan asset outweighs any benefits provided."
"Once again the Alliance has grossly distorted the facts for its own political gain."