RPI down to -0.4% - Negative Interest On Student Loan?

millwardt

RPI for March is officially -0.4% - does this mean we will get negative interest on our student loans?

sly_dog_jonah

See Martin's blog: http://blog.moneysavingexpert.com/2009/03/27/student-loan-interest-rate-is-govt-delay-over-decision-on-%E2%80%9Chow-much-will-it-cost%E2%80%9D/

pre-1998 loans will have an interest rate of -0.4% from Sept 2009. It's unclear yet what will happen to post-1998 loans, depends if the government stick to the mantra 'you'll only pay back the real value of the loan'.

discodavieuk

here's hoping!

Any announcement yet?

Lokolo

Inflations only just been released, give it time.

http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3866911&_dad=portal&_schema=PORTAL

Latest News, just keep an eye on that.

[Deleted User]

This is what the student loans website says:

Student loans are not like commercial loans. They are
subsidised by Government and attract a low cost interest
rate. 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.

Lokolo

Yes but what the T&Cs state and what the government actually does....

[Deleted User]

Lokolo wrote: »

Yes but what the T&Cs state and what the government actually does....

If they try to wriggle out of it I will personally bring a claim!!!!

BruceyBonus

How lobg before the government brings in "The Student Loans (Amendment of Terms & Conditions) Order 2009", or something to that effect?

Masomnia

About half an hour, that's when the students wake up and realize what's happened!

Masomnia

I'm surprised we haven't heard something yet. It's not as if this has been out of the blue, with deflation having been predicted for a while now. You'd think they'd have plans in place for the eventuality, wouldn't you?

Fire_Fox

I would personally be very happy with a 0% loan. I have spent the money, money that does not belong to some faceless government but money earned by millions of hard-working taxpayers. If the rate goes negative where do you think that money will come from?

We will benefit from very low interest rates and paying back only at an affordable rate. The debt doesn't affect our ability to get further credit (e.g. a mortgage) and for some of us the loan will be written off! Few students need to borrow the amount they actually do - how many of us can honestly say we lived frugally?