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Graduates due to get stuffed on Student loans
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mystic_trev
Posts: 5,434 Forumite
Millions of graduates will see the interest rate on their student loans double when the Government hikes the rate from 2.4% to 4.8% from September.
http://www.thisismoney.co.uk/saving-and-banking/student-finance/article.html?in_article_id=421549&in_page_id=52
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Comments
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i guess they will argue that the interest rate is increasing in relation to how much things actually cost, so in real terms the amount of money owed will be the same. this will still suck for many students, but remember that it is still so much better than any other type of loan you could get!:happyhear0
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Well if I get the usual private sector pay increase each year (about 3% if lucky), then I'll be 44 before I pay my loan off at the current interest rate!
That's not including any time out I take to have kids which may mean working part time! I can actually see me never being able to pay it off!
With £3k tuition fees nowadays, any female that wants to have a family, it's hardly worth going to uni!!
What happens to the loan if you don't pay it off?Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
Well if I get the usual private sector pay increase each year (about 3% if lucky), then I'll be 44 before I pay my loan off at the current interest rate!
So you never invisage getting a promotion, with that kind of attitude (ie you never see your self getting better in any regards to your job) you'll find it hard to get a job at all?0 -
melancholly wrote: »i guess they will argue that the interest rate is increasing in relation to how much things actually cost, so in real terms the amount of money owed will be the same. this will still suck for many students, but remember that it is still so much better than any other type of loan you could get!
The problem is that Gordon views his costs in terms of his made up CPI, whereas the student loan is based on RPI.
There's nowt to stop RPI climbing above the base rate, hence commercial loans may one day be cheaper than student loans.
Certainly, if the student loan rate rises to 4.8% it makes the saving vs paying off loan argument more blurry. A 6% savings rate minus 20% tax leaves exactly 4.8%.0
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