In case you missed it, the government recently tried to privatise student loan debt but Vince Cable torpedoed it. It seems rather ironic that one of the first things this government did was to increase tuition fees to the utterly ridiculous figure of £9000 per year, and now, towards the end of their term, they come out with the revelation that the money they are lending to allow people to pay for it isn’t getting paid back. Economic genius George Osbourne at work.
I see the following possibilities:
1. Conservatives are obsessed with privatising things to the point of it being some form of mental disorder.
2. The government has quite happily allowed overall profits to increase but for less and less of that money to end up in the pocket of the average worker, and has not considered how that might impact student loans which are paid back monthly as a small percentage of salary.