Libs may sell $23b HECS debt

[grandmoon]

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.

[spotweldersfriend]

Have they got a mandate for that?

[lakeland27]

---

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

---

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

[cherry*135]

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. 

[kengillard]

not nice LL

[spotweldersfriend]

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

[lakeland27]

---

@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.

[*crikey*mate*]

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

[lakeland27]

---

@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.

[*crikey*mate*]

how can the terms be changed retrospectively?

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