The secret plan to raise the price of student finance hints the government wants to privatise loans

Deferred gratification is not this lot's strong point.

Since the Guardian's scoop about "Project Hero", the secret Government report which proposed retroactively raising the price of student loans, there've been a couple of extra points raised which deserve thinking about.

The first is about the language used. Ministers were given a script, by which they might sell the plans to recent graduates. They were supposed to tell them that:

We all live in difficult times. You have a deal which is so much better than your younger siblings (they will incur up to £9,000 tuition fees and up to RPI+3% interest rates); it won’t make any difference to how much you pay in the short or medium term, just how long you pay it for.

The timing of the report is important to bear in mind, here. It was finalised after the Government had already approved, but not yet implemented, the post-2012 fee regime. A fee regime which was described as "fairer - opening the doors of universities to everyone, regardless of where they're from" and "the fairest option on the table - fairer than the current system and fairer than the graduate tax too" by David Cameron, and "a system of graduate contributions that is fair for all" by David Willets.

Few students going in to university in 2012 will have thought that they were experiencing a "fairer" system than their older siblings did; so it's interesting to know that exactly at the same time that ministers were making these pronouncements, the experts they'd hired to work out how to squeeze the most out of the graduates were busy telling them that it was self-evident that the fee regime was being made much worse.

The second point is the motivation for the changes. Raising the interest rate payable on loan balances won't get any extra money to the government now, when the vast majority of loans taken out since 1998 remain outstanding. Instead, it will increase the time taken to fully pay off the loans, in some cases pushing it all the way back to the 25-year/retirement maximum. That means as time goes on, and people who would have paid back their loans carry on paying off the interest, more money comes into the state.

But this is a government supremely, myopically concerned with the deficit now. If they were able to defer pleasure, they'd have waited to cut the deficit until we were out of depression, after all. So why do it? To make the loan book more appealing to private investors.

The idea of selling off the student loan portfolio has been mooted for a while now. It's an easy way of turning a bunch of future income streams into one handy payment. And if that sounds a bit like a daytime TV advert for debt refinancing, that's because it is. The Government would inevitably sell the debt – which is estimated at between £35bn and £45bn – at far below what they would get if they held on to it. That's partially because you always lose cash if you divest yourself of risk, but it's also because this is not a sale which we can expect to be entered into with the Government negotiating at strength. It's such a political football that any potential buyer will know that once the decision's been made, they aren't going to back track – and so offers below par will be accepted to save face.

That's even more likely to be the case if the Government decides to privatise the loan book before the election in 2015. That will be a fire-sale to remember.

If the measures proposed in Project Hero are enacted, it won't be the end of the fight over student finance – just the start of the next battle.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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The most terrifying thing about Donald Trump's speech? What he didn't say

No politician uses official speeches to put across their most controversial ideas. But Donald Trump's are not hard to find. 

As Donald Trump took the podium on a cold Washington day to deliver his inauguration speech, the world held its breath. Viewers hunched over televisions or internet streaming services watched Trump mouth “thank you” to the camera, no doubt wondering how he could possibly live up to his deranged late-night Twitter persona. In newsrooms across America, reporters unsure when they might next get access to a president who seems to delight in denying them the right to ask questions got ready to parse his words for any clue as to what was to come. Some, deciding they couldn’t bear to watch, studiously busied themselves with other things.

But when the moment came, Trump’s speech was uncharacteristically professional – at least compared to his previous performances. The fractured, repetitive grammar that marks many of his off-the-cuff statements was missing, and so, too, were most of his most controversial policy ideas.

Trump told the crowd that his presidency would “determine the course of America, and the world, for many, many years to come” before expressing his gratefulness to President Barack Obama and Michelle Obama for their “gracious aid” during the transition. “They have been magnificent," Trump said, before leading applause of thanks from the crowd.

If this opening was innocent enough, however, it all changed in the next breath. The new president moved quickly to the “historic movement”, “the likes of which the world has never seen before”, that elected him President. Following the small-state rhetoric of his campaign, Trump promised to take power from the “establishment” and restore it to the American people. “This moment," he told them, “Is your moment. It belongs to you.”

A good deal of the speech was given over to re-iterating his nationalist positions while also making repeated references to the key issues – “Islamic terrorism” and families – that remain points of commonality within the fractured Republican GOP.

The loss of business to overseas producers was blamed for “destroying our jobs”. “Protection," Trump said, “Will lead to great strength." He promised to end what he called the “American carnage” caused by drugs and crime.

“From this day forward," Trump said, “It’s going to be only America first."

There was plenty in the speech, then, that should worry viewers, particularly if you read Trump’s promises to make America “unstoppable” so it can “win” again in light of his recent tweets about China

But it was the things Trump didn't mention that should worry us most. Trump, we know, doesn’t use official channels to communicate his most troubling ideas. From bizarre television interviews to his upsetting and offensive rallies and, of course, the infamous tweets, the new President is inclined to fling his thoughts into the world as and when he sees fit, not on the occasions when he’s required to address the nation (see, also, his anodyne acceptance speech).

It’s important to remember that Trump’s administration wins when it makes itself seem as innocent as possible. During the speech, I was reminded of my colleague Helen Lewis’ recent thoughts on the “gaslighter-in-chief”, reflecting on Trump’s lying claim that he never mocked a disabled reporter. “Now we can see," she wrote, “A false narrative being built in real time, tweet by tweet."

Saying things that are untrue isn’t the only way of lying – it is also possible to lie by omission.

There has been much discussion as to whether Trump will soften after he becomes president. All the things this speech did not mention were designed to keep us guessing about many of the President’s most controversial promises.

Trump did not mention his proposed ban on Muslims entering the US, nor the wall he insists he will erect between America and Mexico (which he maintains the latter will pay for). He maintained a polite coolness towards the former President and avoiding any discussion of alleged cuts to anti-domestic violence programs and abortion regulations. Why? Trump wanted to leave viewers unsure as to whether he actually intends to carry through on his election rhetoric.

To understand what Trump is capable of, therefore, it is best not to look to his speeches on a global stage, but to the promises he makes to his allies. So when the President’s personal website still insists he will build a wall, end catch-and-release, suspend immigration from “terror-prone regions” “where adequate screening cannot occur”; when, despite saying he understands only 3 per cent of Planned Parenthood services relate to abortion and that “millions” of women are helped by their cancer screening, he plans to defund Planned Parenthood; when the president says he will remove gun-free zones around schools “on his first day” - believe him.  

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland