According to the Guardian the Government is about to raise the level of interest on student loans to commercial levels:
The head of the newly formed Department for Innovation, Universities and Skills, John Denham, is set to make a big announcement on student support to the House of Commons today.
The new minister’s statement is expected to be about raising the interest rate paid on student loans to more commercial levels.
Earlier this year, Nicholas Barr, professor of public economics at the London School of Economics, and the architect of tuition fees, said the interest subsidy on student loans should be scrapped. It costs the government around £1.2bn a year, which could be better spent on widening participation.
If true, it will be interesting to see how the additional income is channelled into new WP spend.
