Student Loan - Deflation?

girleight@

"This interest rate is based on the annual March Retail Price Index (RPI) or the highest base rate of a number of major banks plus 1%; whichever is lower."
http://www.slc.co.uk/statistics/facts_figures.html

So shouldn't it be -0.4

PeterDuckett

You are correct the it is:
March RPI
Or
Highest base rate of the major bank + 1%
Which ever is lower.
Guess that the BOE Base Rate is 0.5% RPI is lower and will be used for the calculation for the year

sm9ai

where as -0.4% would be nice, its probably going to be 0%

Either way it should be quite nice.

BruceyBonus

PeterDuckett wrote: »

You are correct the it is:
March RPI
Or
Highest base rate of the major bank + 1%
Which ever is lower.
Guess that the BOE Base Rate is 0.5% RPI is lower and will be used for the calculation for the year

1.5% is higher than -0.4%, so they should be using the RPI figure for next year.

PeterDuckett

Sorry that should say So RPI is lower
But if they put a cap on the loan or other clause could i claim that i had been miss sold my loan on false pretensives

stonedave

found this statement from the student loans company on thisismoney.co.uk

'Now that we know that the RPI is negative, Treasury and Department of Innovation Universities and Skills will consider the options and make an announcement shortly. The interest rate is only applicable from 1st September 2009, so there is no need for an immediate decision.'

so i guess we just have to watch this space!!