I was a little annoyed by the recent call by the industry leaders and the Conservative policy of selling the student loan book which will mean in practice students paying the equivalent of a commercial rate of interest for their loans at University. Currently the rate of interest for a student loan is set at around the rate of inflation – so assuming inflation gets back to a more normal rate over the next few years the long term loan rate will settle at around 3 to 5%. Although this seems high it is the cheapest way to borrow money to pay for a course and in effect a student will be paying back at purchase power parity. The value of the money paid back is at the same purchase value at the money drawn
Continue reading Why burden students with more debt?
Top Posts