MSE News: Inflation up but some student loan rates may drop 16 April 2013 at 11:38AM edited 16 April 2013 at 1:56PM in Loans 3 replies 1.4K views

Former_MSE_Jamie

"Inflation rose to 3.3% last month but it means a number of students and graduates will be charged less interest on loans..."

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Inflation up but some student loan rates may drop



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Ronaldo_Mconaldo

Many students and graduates are therefore likely to see no change, as those with loans taken out between 1998 and 2011 will either pay March's RPI or the base rate plus 1%, whichever is lower, from next September.

So unless the base rate, which is currently at 0.5%, unexpectedly rises, they will continue to pay 1.5%, though this will be capped during the next academic year at the 3.3% RPI level.

Students who have taken out loans since 2012 will pay RPI plus 3% in interest, so can expect to be paying 6.3% in interest, a reduction on 2012/13's figure of 6.6%.

How much? So if you borrowed the money between 1998 and 2011 your interest rate is 1.5% but if you borrowed after that then it's 6.6%? Oh well.

Derivative

Ronaldo_Mconaldo wrote: »

How much? So if you borrowed the money between 1998 and 2011 your interest rate is 1.5% but if you borrowed after that then it's 6.6%? Oh well.

Yep, and if you borrowed after 2011, triple fees.

Head shot.

ChopperST

I'm so pleased I went to university when I did and "only" managed to come out with £10k worth of debt which was financed via the scheme.

Really do feel for those going to university now with tutition fees and the general cost of living increase. Luckily my job was vocational and I got a job immediately after graduation, that is by no means a certainty in any field now.