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Honours Student Loans Rate Increase
Has anyone else recevied the Honours letter in the last week informing them of the rate increase from apr 2.4% to apr 4.8%!!!!
If so does any one have any comment / info on how they are allowed to double the rate - asfter they were sold off with apparntly the same rates etc etc.:mad:
If so does any one have any comment / info on how they are allowed to double the rate - asfter they were sold off with apparntly the same rates etc etc.:mad:
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Comments
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The rate is in line with RPI (which SLC have always communicated) and is fixed as of the RPI in March before the year starts (in September). RPI in March 2007 was 4.8%, so student loan interest rate increases from September to 4.8% for one year. So in real terms, the value of the loan remains broadly the same as it was when it was borrowed, because it is always linked to inflation. Next year the rate could go down again.
Hope that helps.
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