Company to profit from chasing student debts
A second Pounds 1 billion lump of debt owed by students has been sold to the private sector. The successful company, which stands to profit from recouping the debt on student loans taken out since 1990, is Honour Trustee Limited. It is a special-purpose company set up specifically to acquire the debt assets. It is underwritten by the Nationwide Building Society and the Deutsche Bank. The first Pounds 1 billion chunk of loan debt was sold to Finance for Higher Education Limited, which was formed by Greenwich NatWest, a division of the NatWest Bank. About Pounds 1.5 billion-worth of debt remains for disposal to the private sector.