At last, in the Times today there is a letter with a breakdown of the real cost over a lifetime of a student loan, including the interest payable on it. Nowhere else have I been able to find out these facts. They make astonishing reading. I quote -
'The loan carries an interest rate of RPI for the full 30 years; RPI plus 3 per cent is charged from when you first take out the loan until the April after you graduate; once you earn £21000 there is a scaled additional interest rate of up to 3per cent. Assumimg a tuition loan of £9000 p.a. plus a maintenance loan of £3575 and a 6.6 per cent rate charge this academic year and an assumed 5.6per cent for the remaining years, the loan value in April 2016 would be £37,725. The debt would be £44,221 as £6,496 interest will have accrued.
Annualise this over 30 years the figures are frightening.' -
When the former student earns £25000, repayments begin at £30 a month - £360 p.a. This will not even cover the interest payments!
My thanks to Susan Simnett of London for highlighting this problem
Good Morning Monday 29th April 2024
NHS U turn on trans terminology