Labour's Student Loan Co sell-off 'could mean higher repayments'

12.00.00am GMT Tue 27th Oct 2009

Lib Dem candidate for Cardiff North, John Dixon, is listening to local students over the future of student finance.

Controversial plans by Gordon Brown to sell off the Student Loan Company into private hands could mean higher repayments for graduates, the Liberal Democrats have warned.

Labour announced the plans to sell off the Student Loan Company earlier this month as part of a major sell-off of public assets to plug holes in government spending ahead of a General Election.

But selling the Student Loans Company to a private firm could result in graduates having to pay higher repayments on their loans.

Lib Dem candidate for Cardiff North, John Dixon, said: "Labour are selling off our public institutions for short-term gain and ignoring the long-term pain it will cause. A private company would be able to demand higher repayments on student loans and make it even harder for new students to afford a university education."

Ed Bridges, Lib Dem councillor for Gabalfa & Talybont, added: "The Liberal Democrats have long argued that university should be a right for all and not just a privilege for the rich few. Selling off the Student Loans Company provides further evidence that Labour simply don't understand the problem of student finance and student debt."