Property News · May 27, 2016

Have student loan interest rates really shot up?


A young graduate was in the news this week after posting his student loan statement online showing that he was accruing up to £180 a month in interest – or a rate of 6.6% – when he thought he had signed up to a rate of just 0.5%A Facebook post by a recent graduate suggesting that interest rates on student loans have been hiked went viral this week – so have rates really gone up?The post, by a graduate called Simon Crowther who finished a degree in civil engineering last year, suggested that he and other students had seen their interest rates hiked after the sale of the Student Loans Company to a private firm. Crowther seems to have struck a nerve with other students when he published his statement, showing he was racking up as much as £180 a month in interest on a £40,000 loan for tuition fees and maintenance. He said he had expected to pay just 0.5% when he signed up, but rates had been increased when the company was sold off. But Crowther is mistaken – the interest rates on the loans had been set before he and his contemporaries started university in 2012. Continue reading…

Source : theguardian.com
Read more…Have student loan interest rates really shot up?

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