Student loan interest rates set to rise to 6.1 per cent
It’s because of Brexit and the UK inflation surge
Interest rates on student loans are set to rise by up to a third after the inflation surge post-Brexit.
The decline of the value of the pound since June 2016 means that students will be charged much more for their loans. Current students and new starters are charged 4.6 per cent, but it will rise to 6.1 per cent in September.
It will affect those who took out their student loan after 1st September 2012 and those who have now graduated. Interest rates will be determined based on household income.
You do not have to pay your loan back until you earn over £21,000. Student money advice website Save the Student commented: “Unless you start off with a graduate salary of higher than £30,000, it’s unlikely you will pay off your full loan and interest before it’s wiped after 30 years anyway.”
Jake Bulter from Save the Student added: “In reality, this increase is just adding to the massive amounts of accumulative student loan debt that the government will never see.”