Loan security is simply the leverage the bank can/will use to get the parents to make Rupert's loan payments when he can't. No security, no lever in the bank's hand. Since CTC cadets who started the Wings programme two years or so ago were offered unsecured loans, they could be forced into bankruptcy by the PTF scheme, while those with secured loans might receive parental help. The bank, and maybe CTC too, will be screwed if the pay is too low, as they could force a lot of these graduates into bankruptcy. Likewise, if the pay is enough, they can help keep them out of bankruptcy. I'd say the CTC graduates have better negotiation leverage than the OAA ones do then, since they have unsecured loans and the OAA lot have secured ones. It's a good thing they noticed that ARL was offering them less than Parc was offering their OAA counterparts and that they used the lever to negotiate.
I wonder where the CTC chaps will get the money for the PTF scheme though? I'm sure HSBC have figured out that they now have leverage too. They could offer another loan to cover PTF in exchange for the whole lot of debt being secured going forward. So where does a CTC-to-EZ PTFer get the funds needed? Have they built any financing/bespoke loans into the scheme or is it all down to the depth of Rupert's pocket or the bank of Mum and Dad's?
The type of leverage I mean here by the way, is the kind that one uses to move an obstacle from one's path, not debt, which is also called leverage.