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Student Loans and RPI?
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*ditz*
Posts: 32 Forumite
I wasn't sure whether to post this in Loans, or here, so I'm sorry, but I've double posted. Does anyone know what is going to happen re: student loans after today's announcement of RPI?
According to their literature, and to date, the interest on a student loan tken out after Sept 1998 has had interest charged on it from Sept one year to August the next at the rate of the March RPI the year before. (Or at the average bank base rate plus 1%, whichever is lower)
Following on from today's announcement, this would imply that from Sept 2009 to Aug 2010, they will in fact have to pay 0.4% interest to all people who have outstanding student loans.
It would be rather depressing if they don't stand by this, as this was championed by them a few years ago as "the way it was" when the RPI one year was double that of the year before and the interest on student loans doubled overnight from 2.4% to 4.8%. Standing by their own rules would mean that the interest should now be -0.4%!!
I'm not a financial Whizz, but I've thought that this was coming for several months now, so it must be something which they've thought about, but I can't find any information.
Does anyone know anything? Or anywhere to look for information?
Thanks.
According to their literature, and to date, the interest on a student loan tken out after Sept 1998 has had interest charged on it from Sept one year to August the next at the rate of the March RPI the year before. (Or at the average bank base rate plus 1%, whichever is lower)
Following on from today's announcement, this would imply that from Sept 2009 to Aug 2010, they will in fact have to pay 0.4% interest to all people who have outstanding student loans.
It would be rather depressing if they don't stand by this, as this was championed by them a few years ago as "the way it was" when the RPI one year was double that of the year before and the interest on student loans doubled overnight from 2.4% to 4.8%. Standing by their own rules would mean that the interest should now be -0.4%!!
I'm not a financial Whizz, but I've thought that this was coming for several months now, so it must be something which they've thought about, but I can't find any information.
Does anyone know anything? Or anywhere to look for information?
Thanks.
Murphy's no more pies club member #194 - Weight loss to date = 2 stone 7 1/2 lbs
Debt Free Wannabe 24/3/2008 - The budget starts today!!
Debt Free Wannabe 24/3/2008 - The budget starts today!!
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Someone's pointed me in the right direction. Sorry for bothering you. If anyone's interested. Information is here: http://forums.moneysavingexpert.com/showthread.html?t=1640461Murphy's no more pies club member #194 - Weight loss to date = 2 stone 7 1/2 lbs
Debt Free Wannabe 24/3/2008 - The budget starts today!!0 -
I'm filled with a feeling of silly excitement when I think about this.0
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It would be rather brilliant, but I shaln't believe it till I see it.
Besides I'm a post-1998 and the reports seem to be saying pre-1998 almost definate, post-1998 probably not.Murphy's no more pies club member #194 - Weight loss to date = 2 stone 7 1/2 lbs
Debt Free Wannabe 24/3/2008 - The budget starts today!!0 -
I'm pretty sure it's for post-1998 too. If it's not I will take to the streets.0
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stephen163 wrote: »I'm pretty sure it's for post-1998 too. If it's not I will take to the streets.
See the other thread... I agree with you. But I'm not holding my breath.
I won't believe it till I see it.
As the first year to not have grants, the first year to pay tuition fees and the first year to have the new tax- repay system. I think it quite unlikely that we will not be messed around again!!Murphy's no more pies club member #194 - Weight loss to date = 2 stone 7 1/2 lbs
Debt Free Wannabe 24/3/2008 - The budget starts today!!0 -
It would be cool, but for the sake of ~£3.50 per month off my loan as it is now, I'm not that bothered.“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0
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If you have a £10k loan, it could be the difference between a £12.50 increase per month (@+1.5%) and a reduction in its nominal value by £3.33 per month (@-0.04%).
But in theory the real value of it stays the same, so it's psychological really.0 -
I don't even have my student loan any more....
...but...
....I love this...
ha ha ha ha ha. Student loans co have had this coming. A non-commercial company - yeh right :rolleyes:[SIZE=-4]MF date: Dec [STRIKE]2028[/STRIKE] 2019. Overpayments in 2007=£900, 2008=£1200 2009=23400[/SIZE]0 -
Bah, I cleared mine this month!This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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