what to do for student loan

shocky_2

CLAPTON wrote: »

Student pay inflation plus 3% so about 5.7%; impossible to get a savings a/c paying that.

It depends what she earns after graduation. It turns out that this is only the maximum interest rate. From wikipedia:

"For loans taken out after 1 September 2012, and due to enter repayment April 2016, interest will accrue on the loan at the rate of RPI plus 3% (i.e. these loans are no longer 'free in real terms') until they become eligible for repayment (i.e. the April after graduating), at which point interest it is planned to apply a progressive rate of interest dependent on income. The rate will range from RPI for those earning up to £21,000 per annum, up to a maximum of RPI+3% at a salary of £41,000"

So, she won't be able to beat the RPI+3% charged while she is studying. But she probably won't earn much more than 21k after graduation and should be able to beat plain RPI. When her earnings increase and she starts paying a higher rate, she can then reexamine the situation (interest rates should have gone up by then).