SLC put more than 33,000 people on to a ‘non-compliance interest rate’ of 3% for ‘losing touch’ with companyThe Student Loans Company has been criticised for adding more than £8m to student debt through “penalty interest” on tens of thousands of loans in the last financial year. Student loan interest rate set to rise by a third after UK inflation surge Read moreSeventy people each had more than £1,500 added to their loans between April 2016 and March 2017, with 5,480 charged the rate for the full 12 months. The penalty interest, which is equivalent to the rate paid by the highest earners, is charged until the loan holder provides the required information. Questions are also being raised about the administration of the penalty interest rates, introduced in April last year. If they actually wanted to investigate they could have found out straight away.”The penalty interest rate was never implemented, despite Gable being told in correspondence with the SLC that it was being applied, before the decision was overturned.

Source: The Guardian July 29, 2017 07:30 UTC