UK student loan changes to add billions to budget deficit


Save Story
Leer en español

Estimated read time: Less than a minute

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

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 12 billion pounds ($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."

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Most recent Business stories

Related topics

Business
The Associated Press

    STAY IN THE KNOW

    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the KSL.com Trending 5.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast