Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Saturday, May 25, 2024 | Back issues
Courthouse News Service Courthouse News Service

UK Student Loan Changes to Add Billions to Budget Deficit

Britain's Office of National Statistics says it is changing the way it accounts for student loans in a decision that will add $15 billion to the country's budget deficit.

LONDON (AP) — Britain's Office of National Statistics says it is changing the way it accounts for student loans in a decision that will add $15 billion to the country's budget deficit.

The statistics agency said in a statement Monday that the design of the system means much of the loan book is never repaid.

The agency's David Bailey says the decision "properly reflects the true picture of government spending" because future write-offs will be reflected as government spending now.

Treasury officials stressed the accounting decision won't affect students, who can still get loans.

But Matt Whittaker of the Resolution Foundation says it will inevitably affect the government's approach to education financing "by making more explicit where the costs of the system lie."

Categories / Education, Financial, Government, International

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Loading...