Raise interest rates on old student loans, secret report proposes

By Aditya Chakrabortty. Proposal is found in Whitehall-commissioned study examining how coalition could privatise entire stock of student loans. A confidential report commissioned by the government has proposed redrawing the terms of student loans taken out over the past 15 years, that would make them more expensive to pay back for 3.6 million borrowers in England alone.  The proposal to increase the interest rates on the £40bn worth of loans is the most controversial of a series of options contained in a Whitehall-commissioned study examining how the coalition could privatise the entire stock of student loans issued since 1998. Read more...