While browsing FIGI securities listings we saw this entry – ICSL. What exactly is ICSL?
ICSL stands for Income Contingent Student Loan which for those new to banking is the securitisation of ‘Student Loans’.
Anyone going to University will have likely queued and signed on the line to fund their tuition fees (£9,250 / year) and living costs (upto £13,022 / year – depends on location etc) while studying. For a three year degree that could add up to the eye watering sum of £66,818 plus interest. What a great deal for those who want to better themselves. That’ll take quite some years to pay back, collections are taken directly from PAYE.
What’s special about these then? Well, following a similar theme ( such as asset backed securities [ABS], Mortgage Backed Securities [MBS] ) the assets ( future receivables ) are pooled together and ‘sold off’. Ask students where they think the funds for their loans have come from and see how many answers include ‘government debt’.
Research Links and Further Resources
Companies House: INCOME CONTINGENT STUDENT LOANS 2 (2007-2009) PLC
OpenFIGI: ICSL Securities