There must be some method of using QE in everything, right?
But what of those in between who have student debt? Will they continue to pay? My answer is that I think that would be a big mistake.
The reality is that QE could now be used to repurchase the student debt that has already sold and that still in state hands owned by the Student Loan Company which in total now have a nominal value of about £86 billion. This is only just over a year’s QE funding at present and I say ‘nominal’ because it is thought that up to 70% of all new graduates may never repay all of their loans meaning that the market price of this debt is way below the notional or nominal value.
If this was done then a three stage process could begin towards debt write off.
Why in buggery do you need QE? Other than to allow Ritchie to claim that it’s being used that is?
Government owns the debt. It can write it off any time it likes.