Student loans worth nearly £900m sold off

Nearly £900 million of student loans were sold off today as part of a Government drive to raise money to balance the nation's books.

The mortgage-style loans, which were taken out by students who began courses between 1990 and 1998, have been sold to a debt management consortium for £160 million.

Universities Minister David Willetts said the private sector was best placed to collect the outstanding debt Credit: PA Wire

Universities Minister David Willetts said the move represents "good value for money", and would enable the Student Loans Company to concentrate on administering more recent loans.

NUS president Toni Pearce said it was "extremely concerning" that the public would be subsidising a private company to make a profit from public debt.