MSE News: Lords demand cut in student loan interest rates

The interest rate charged on post-2012 student loans should be reduced to 1.5%, a parliamentary committee has said...
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'Lords demand cut in student loan interest rates'
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  • badmemory
    badmemory Posts: 7,710 Forumite
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    And about time too! For a gov agency to be charging those rates when a mortgage can be got for a third. Or put it another way - the ones who are earning enough to pay are being charged enough interest to cover for the ones who are NOT obliged to pay. In modern day terms it smells a bit of usury. But hey only payday loans do that don't they? (Check your cc interest rate before agreeing).


    I also think they should not be charged interest until they have finished their course.
  • This could go a long way to redressing the resentment of student loans. There is a logic to students paying for their education but there is no justification for charging graduates who have undertaken demanding degrees and gained well paid employment punitive interest rates. Surely it is the progressive tax system, through which these graduates are likely to pay increased tax, that should ensure the financially successful make a reasonable contribution to society.
  • silvercar
    silvercar Posts: 46,930 Ambassador
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    Downside is no one will feel it necessary to pay off early, so there will be a cash flow cost to the government
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
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