It has announced that loans made to students in England between 2002 and 2006 will be put up for sale - to be followed by other pre-2012 loans - with the aim of raising £12billion.
There will be no changes to the terms and conditions - so that rates of repayment for former students will remain the same.
The HMRC and the Student Loans Company will continue to provide the same service as they do now.
People whose loans are part of a sale would receive an official Government notification in the post following the sale but nothing will change for them and no response or action will be needed.
The Government has had a long-standing aim to sell the student loan book to private investors - with types of loans being sold in separate stages.
Universities, Science, Research and Innovation Minister, Jo Johnson, said: " This government is committed to bringing public finances under control, and returning the budget to balance.
"As part of this we will look to sell assets where value for money to the UK taxpayer is assured.
"This sale will have no impact on people with student loans and will only proceed once we are satisfied that it represents value for money for the taxpayer."