I've been told an interesting tale about student loans. The story is that when the Inland Revenue takes student loan repayments, rather than delivering them straight to the Student Loans Company, they hold it until the end of the financial year and then send an annual lump sum. This means that the government can make interest on the money students pay them while students then become liable for the added interest the SLC charge for not receiving the money until the end of the year. Essentially, because the government withhold the payment till the end of the year, students are being charged interest on money already paid.
Can this really be true? Is it another Gordon Brown stealth tax?