Student loan proposals ‘outrageous’, says Labour

By John Morgan. The government should urgently clarify its plans for the sale of the student loan book and reassure existing graduates that their repayments will not be raised, according to Labour’s shadow higher education minister. Shabana Mahmood spoke after it was revealed that a report commissioned by the government included proposals to increase interest rates on student loans for 3.6 million borrowers in England who took out loans over the past 15 years. The report, by Rothschild investment bank and examining how the coalition could sell student loans issued since 1998, was obtained by the False Economy website under the Freedom of Information Act, according to a story in The Guardian. Read more...