Moreover, both in developed and in developing countries, existing student loan programmes usually require financial injections even in the long term, because losses due to unemployment, default, illness or refusal to repay are usually not priced into the repayment amounts.
On February 1st Congress narrowly passed the Deficit Reduction Act, which aims to slim America's bulging budget deficit by, among other things, lopping $12.7 billion off the federal student-loan programme.
A deal reached on December 18th means that, if the current budget package gets through Congress, student-loan programmes will suffer a net cut of $12.7 billion over the next five years the biggest cut in university funding since the Higher Education Act was initiated in 1965.The package is a complicated mixture of savings, spending increases and accounting gimmicks.
The chancellor has promised to deliver the most lucrative privatisation programme ever, with the student loan book, worth £12bn, the nuclear fuel processor Urenco and the taxpayer's remaining 15% stake in Royal Mail up for grabs.
"One of the things we make clear is that at the higher price point we have to be able to justify the value to the students, whether they are part of the loan programme or not," he says.
The sale of student loans bill, which applies to England only, will enable the students' secretary, Lord Triesman, to go ahead with a programme to sell off some of the student loan portfolio.
The school has announced a loan programme with Digital Federal Credit Union (DCU) that will provide assistance to international MBA students who do not have an American "co-signer", as a guarantor is known.
First, the government lends through the William D. Ford direct loan programme, which competes with private lenders and has about a quarter of the student-loan market.
"She had student loan debt.
Higher student loan payments".
