topic Re: Libs may sell $23b HECS debt in Community Spirit

Libs may sell $23b HECS debt

grandmoon — Tue, 15 Oct 2013 23:15:45 GMT

The university education debt of millions of Australians could be sold off under a proposal to be examined by Prime Minister Tony Abbott's inquiry into the state of the nation's finances.

In a move that could boost the Budget bottom line, up to $23 billion of outstanding Higher Education Contribution Scheme debt would be effectively privatised under a plan that has already won support in some financial circles.

Re: Libs may sell $23b HECS debt

spotweldersfriend — Tue, 15 Oct 2013 23:29:08 GMT

Have they got a mandate for that?

Re: Libs may sell $23b HECS debt

lakeland27 — Wed, 16 Oct 2013 00:44:05 GMT

@spotweldersfriend wrote:
Have they got a mandate for that?

of course they have. ashby. he knows a mandate.when he sees one.

Re: Libs may sell $23b HECS debt

cherry*135 — Wed, 16 Oct 2013 00:38:16 GMT

I wonder how that would affect people (students/ ex students ) that have a HECS/HELP debt?

One proposal that has backing in the financial sector is to convert the $22.6 billion in HECS debt held by 1.6 million Australians into a financial product. In a process called securitisation, the responsibility for HECS debts would be bought by the private sector and then sold to investors.

It is understood that Mr Hockey was made aware of the possibility of turning Commonwealth HECS debt into a finance product while shadow treasurer.

Re: Libs may sell $23b HECS debt

kengillard — Wed, 16 Oct 2013 00:39:34 GMT

not nice LL

Re: Libs may sell $23b HECS debt

spotweldersfriend — Wed, 16 Oct 2013 00:46:42 GMT

Who are they selling the debt to? Lehman Bros.or Merrill Lynch?

Re: Libs may sell $23b HECS debt

lakeland27 — Wed, 16 Oct 2013 00:50:50 GMT

@kengillard wrote:
not nice LL

You would read something seedy into that gill, i was referring to his intimate study of the political sciences, from the bottom up apparently.

Re: Libs may sell $23b HECS debt

*crikey*mate* — Wed, 16 Oct 2013 05:16:44 GMT

could somebody please explain to me why this is a bad thing?

Re: Libs may sell $23b HECS debt

lakeland27 — Wed, 16 Oct 2013 06:28:28 GMT

@crikey*mate wrote:
could somebody please explain to me why this is a bad thing?

well first of all you have to ask why someone or something would want to buy it. to profit from it of course, which means the terms may change too, and that can never be a good thing. the price /interest paid are the likely areas for rises.

Re: Libs may sell $23b HECS debt

*crikey*mate* — Wed, 16 Oct 2013 06:35:16 GMT

how can the terms be changed retrospectively?

it could only be applied to new charges or new students, couldn't it?

Re: Libs may sell $23b HECS debt

lakeland27 — Wed, 16 Oct 2013 06:39:44 GMT

i have no idea , but one would hope not. it looks like the price is going up in future though.

Re: Libs may sell $23b HECS debt

toysartnstuff — Wed, 16 Oct 2013 06:52:06 GMT

I think if they find they can get away with this then they'll make sure it's for everyone... past, present and future.

Re: Libs may sell $23b HECS debt

spotweldersfriend — Wed, 16 Oct 2013 07:50:08 GMT

"I can guarantee we will not have $100,000 university fees." John Howard 1999.

Check again, Johnny.

Re: Libs may sell $23b HECS debt

monman12 — Wed, 16 Oct 2013 08:37:20 GMT

"You would read something seedy into that gill, i was referring to his intimate study of the political sciences, from the bottom up apparently."

He obviously needed lessons from Thomson and his intimate studies apropos the advantages of extracurricular unionisation underwritten by union members, or should that be "a union member"?

SWF: "I can guarantee we will not have $100,000 university fees." John Howard 1999."

And the government set the fees SWF?, or is it an acceptable comment like “There will be no carbon tax under a government I lead,”?

Re: Libs may sell $23b HECS debt

lakeland27 — Wed, 16 Oct 2013 21:26:38 GMT

i dont recall hearing of thomson cavorting with underage teenage boys. i dont recall him pimping himself out for Mal or anyone else either.

Re: Libs may sell $23b HECS debt

*mrgrizz* — Wed, 16 Oct 2013 22:59:56 GMT

how much under it's value will they sell it for?

or will all the people with a HECS debt now start having to pay interest?

nobody would buy the debt if they aren't going to make money on it

Re: Libs may sell $23b HECS debt

i-need-a-martini — Fri, 18 Oct 2013 10:53:38 GMT

Selling a debt is just looking for trouble.

We're on the end wave of the GFC caused in a large degree by non primary lenders losing squillions on debt investments. US mortgage market Mr Hockey??

Re: Libs may sell $23b HECS debt

*crikey*mate* — Fri, 18 Oct 2013 11:15:20 GMT

@*mrgrizz* wrote:

how much under it's value will they sell it for?
or will all the people with a HECS debt now start having to pay interest?

nobody would buy the debt if they aren't going to make money on it

maybe the current debt is not from where the benefit will be derived, but rather the future debts that the purchasing company would now have control over.