student loan interest rate rising to 3.2%

jellyhead

i got this from the SLC website, in case anyone's interested.

From 1 September 2005 until 31 August 2006 the interest rate which will apply to student loans will be 3.2%. The current interest rate of 2.6% will apply until 31 August 2005.

jimclark1967

Marvellous - just what I wanted to hear as I apply for my 5th year's worth :j

JC

daveboy

Good - less money to spend on booze and hopefully less anti-social behaviour on our streets.

Be thankful it's not nearer 7% which is what the rest of us pay to borrow in relation to a loan.

jellyhead

i doubt the interest rate will have any effect on the amount current students are borrowing, they don't repay it yet. i have to say that in my town it's not the students causing trouble, it's the locals.

yes i realise it's a low interest rate, but when i went to uni i did it on an income of less than half what i'd have got if i'd been on benefits - no way could i afford to drink! most students are leaving uni with massive overdrafts and loans, taken out to buy tesco value fish fingers, not conservatories, cars or double glazing.

jimclark1967

daveboy wrote:

Good - less money to spend on booze and hopefully less anti-social behaviour on our streets.

Be thankful it's not nearer 7% which is what the rest of us pay to borrow in relation to a loan.

Indeed, in fact I must have spent at least £10 on alcohol last year - terrible!

JC

Stonk

When I was at Uni I distinctly recall that the interest rate on student loans was supposed to be the same as inflation, making it free money. When did the government throw that concept down the drain?

Phonix

I imagine they think the rate of inflation between that period will be 3.2%.

I think it's been at 3.5% before.

Be thankful it's not nearer 7% which is what the rest of us pay to borrow in relation to a loan

yes but what do you borrow that money for? to buy a new car? to spend more? to pay for an extention to your house?

Or do you borrow the money because the work you do doesn't generate any income?

stuwilky

Stonk wrote:

When I was at Uni I distinctly recall that the interest rate on student loans was supposed to be the same as inflation, making it free money. When did the government throw that concept down the drain?

It still is.

From memory the interest changes from 1 September in any given year based on the RPI for the April of the same year.

Unfortunately April was high this time round.

Robert_Sterling_3

The Student Loan Company Tells All

daveboy

Phonix wrote:

Or do you borrow the money because the work you do doesn't generate any income?

I owe the grand total of £0 so nice try on that one.

Phonix

Because you do a job that generates an income....

what is your point?