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Charles Ponzi reconjured

The swelling costs of student loans may become unmanageable without number controls, a Westminster committee is told.

Repeatedly selling the student loan book in order to fund expanded student numbers amounts to little better than a Ponzi scheme, Bahram Bekhradnia of the Higher Education Policy Institute told a Commons committee today. Charles Ponzi (pictured) was convicted of fraud in 1920 after using money from later investors in his scheme to pay early investors.

Bekhradnia questioned the unexpected and “radical” step of abolishing the student number cap in 2015-16 at an inquiry into student loans held by the Commons business, innovation and skills committee.

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