Published on August 18th, 2011 | by Pete0
Student Loan Interest Increases – what you need to know
Unfortunately there is potentially bad news ahead for University graduates who began their studies before 1998, as from September 2011 they will incur an increase in their interest charges (from 4.4% to 5.3%). If like me, you started University after 1998, you may not be immune to these increased charges either, as if the Bank of England base rate increases over the next year, we could also be left with a slightly increased interest rate to deal with. If the rates do not rise (fingers crossed) then we will remain on the current 1.5% interest rate.
This week, the creatively named Student Loans Company announced that there will be an increase in their rates of interests, and that these will vary dependent on when students began their University studies. There are approximately 2.2 million individuals who have taken out student loans since 1998, whereas there are around 355,000 individuals who have outstanding student debt from before 1998. It seems we will all be paying a little more money back than we originally planned. Thoughts……?