© Copyright 2008 www.studentfinances.org.uk
Wednesday, 10 December, 2008
Graduates could soon be paying back less of a student loans, a national student body has said.
The National Union of Students (NUS) yesterday suggested that graduates could soon benefit from a reduction in the interest rates on student loans, according to Hobsons.
Any drop would be thanks to the Bank of England's (BoE) Monetary Policy Committee (MPC) deciding to cut the base rate of interest.
The MPC slashed the base rate again last week to just two per cent and the NUS has suggested that if banks reduce their rates in line with the cut then graduates can expect a cut to their repayments.
While higher than the two per cent base rate, interest on student loans is currently just 3.8 per cent.
Sadly, any drop would not be noticed until September 2009 - as the Student Loans Company adjusts its rate just once per year.
It was recently claimed that some students who come from wealthy families have been illegally taking advantage of their parents' non-domiciled status in the UK by not declaring their earnings - meaning they are given bursaries which they are not entitled to.
Source: http://www.gaapweb.com/