This meant that hundreds of thousands of Wonga customers subsequently had their outstanding loans written off.
But the repayment threshold would be raised from £15,000 to £21,000, with outstanding loans written off after 30 years.
Think tank Centre Forum has criticised the government's proposal to penalise early repayment of student loans, writes the BBC.
And although the quality of loans written since the crisis has been high, banks fear they could be swamped with put-backs if the economy slows.
The problem with this criticism is that the majority of mortgage loans written since the financial crisis likely fulfilled the proposed requirements.
Wonga customers are anxiously waiting to find out whether they are among the 330,000 borrowers having their payday loans written off.
Still, the amount of corporate loans written off by the bank, at $148 million, was down slightly from the fourth quarter of 2000.
"There is a real risk that banks stop being the primary source for personal and small-business loans," wrote analysts at BBVA, a Spanish bank, last year.The same debate is taking place about shadow lending as a whole.
"And just yesterday, Scott Brown voted with the Republican Party, and against students already drowning in debt, by voting to let interest rates double for federally subsidized student loans," wrote campaign staffer Doug Rubin in the e-mail.
It said that bad loans written off rose to an annual rate of 4.26percentt of total loans at the end of June, from 3.71percentt a year earlier, and that loans with payments more than 60 days past due rose to 4.53percentt from 4.27percentt.
