Student loan interest payments at 0%

| May 14, 2009 | 1 Comment

The Government has announced this week that 2.5 million students will pay 0 percent interest on student loans from September.

However, this slashes the hope that student loans, which are linked to the Retail Prices Index which has fallen to -0.4 percent, would mean that loans would be reduced accordingly.

The Student Loans Company has stated that the decision was taken due to the fact that the loans are already subsidised and the Government could not justify using taxpayers money to reduce loans.

This would have meant that those taking loans out in 2009-2010 would have seen their student loan balances immediately reduced.

It does mean that graduates will be able to pay back their loans quicker as borrowers pay 9 percent of their earnings over £15,000, although the monthly repayment will remain at that same level.

Wes Streeting, the president of the National Union of Students, said that the Union is pleased that the Government has listened to students and in the grip of recession this is the best deal that they could have expected.

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  1. Sriyash says:

    It’s a good news for students who wants to study in foreign. They can take a benefit of this zero interest loan.

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