To all with student loans

[Beefy198]

I'm not sure how many of you on here could be affected by this, but if not you then maybe one of your kids are.

You may have heard about the current disgusting government position re. student loans. If not read on...

When student loans were brought in, the government pledged that the amount borrowed would always cost the same in 'real terms' when a student finally paid it off.

In order to achieve this, they linked the interest rate to the Retailers Price Index (RPI). There were some concerns over this (as this was affected by mortgages), which came to a head last year when ex-students paid nearly 5% interest on their rather sizeable loans.

Now that the economy has gone up the spout, we have all been told that the UK economy is deflating, as opposed to inflating. The RPI is currently -0.4%.

Good news to those with student loans?

No. The government has actually decided to reduce the cost of the student loan interest to just 0%.

What this means is that those with student loans will actually pay MORE for their loan, the exact opposite of a Labour pledge.

I've got some reading material that explains all this much better than I could:

Student loan interest rate decision is a disgrace - This is Money Blog
Student Loans: Should you pay them off?...
Will deflation mean student loan pays me interest? | This is Money

And if you, like many others, are affected by this it is in your interests to sign the petition below.

http://petitions.number10.gov.uk/Loansofstudents/

[bez]

Thanks for the heads up Beefy - I'll have to let my son know.

[The SMG]

Originally Posted by Beefy198

I'm not sure how many of you on here could be affected by this, but if not you then maybe one of your kids are.

You may have heard about the current disgusting government position re. student loans. If not read on...

When student loans were brought in, the government pledged that the amount borrowed would always cost the same in 'real terms' when a student finally paid it off.

In order to achieve this, they linked the interest rate to the Retailers Price Index (RPI). There were some concerns over this (as this was affected by mortgages), which came to a head last year when ex-students paid nearly 5% interest on their rather sizeable loans.

Now that the economy has gone up the spout, we have all been told that the UK economy is deflating, as opposed to inflating. The RPI is currently -0.4%.

Good news to those with student loans?

No. The government has actually decided to reduce the cost of the student loan interest to just 0%.

What this means is that those with student loans will actually pay MORE for their loan, the exact opposite of a Labour pledge.

I've got some reading material that explains all this much better than I could:

Student loan interest rate decision is a disgrace - This is Money Blog
Student Loans: Should you pay them off?...
Will deflation mean student loan pays me interest? | This is Money

And if you, like many others, are affected by this it is in your interests to sign the petition below.

http://petitions.number10.gov.uk/Loansofstudents/

nice one Beefy. It's an absolute disgrace frankly. The students get a raw deal nowadays, no doubt about it. When they graduate, most of them will be paying top whack income tax and nic (if they can find a job) so I’m sure they'll be paying off these loans well into their thirties.

It's certainly not 1995 anymore but sometimes I really wish it was...

G