I meant economic benefits for 'our society' / nation / debt etc.
The government are still paying the same amount of money but instead of giving students £3,500 to pay the unis and then paying the remaining (im guessing £5,500) themselves. They are giving students £9,000 through the loans company and making them pay it back much later. But this 5.5k isnt coming back into the economy this year or the next........
But that debt (£9000) is then sold onto a third party - investment bank, hedge fund whatever for £8500 (some amount less to account for defaults etc). So they've gone from paying £9000 to paying £500.
Edit: or if not sold on I assume there is someway of representing the current value of a future cashflow on a balance sheet, so it would affect the nations finances immediately.
But that debt (£9000) is then sold onto a third party - investment bank, hedge fund whatever for £8500 (some amount less to account for defaults etc). So they've gone from paying £9000 to paying £500.
Edit: or if not sold on I assume there is someway of representing the current value of a future cashflow on a balance sheet, so it would affect the nations finances immediately.