Student Loan Interest

yertiz_2

Just read this article from 'Moneyfacts':

http://moneyfacts.co.uk/news/buy-to-let/cheap-buy-to-let-mortgage-deals-on-the-rise/?utm_source=Moneyfacts.co.uk+&utm_medium=email&utm_campaign=5640945_Consumer+Newsletter+250415+(non-opens+re-send+290415)

So Buy To Let mortgages, 3.34% are cheaper than the interest on Student Loans, currently 5.5% (3% + 2.5% CPI)

Does anyone else think this is morally wrong?

Ed-1

yertiz wrote: »

Just read this article from 'Moneyfacts':

http://moneyfacts.co.uk/news/buy-to-let/cheap-buy-to-let-mortgage-deals-on-the-rise/?utm_source=Moneyfacts.co.uk+&utm_medium=email&utm_campaign=5640945_Consumer+Newsletter+250415+(non-opens+re-send+290415)

So Buy To Let mortgages, 3.34% are cheaper than the interest on Student Loans, currently 5.5% (3% + 2.5% RPI)

Does anyone else think this is morally wrong?

While studying the interest rate on post-2012 student loans is RPI + 3% but from the April after finishing it drops to between RPI and RPI + 3% (in other words the interest rate is variable).

With a Buy to Let mortgage you do not pay 9% of your income above £21000 in repayments, you pay a lot more, and the balance is not written off if you haven't paid it back within 30 years. Seem pretty good terms to me.

Comparing student loans to other loans is comparing apples and pears.