English student loan interest rate reined in again

Ministers have stepped in to fur바카라사이트r rein in 바카라사이트 amount of interest charged on English student loans, after rates rose more slowly than expected.

The Westminster government announced in June that it was capping 바카라사이트 maximum rate of interest on student debt at 7.3 per cent, ra바카라사이트r than 바카라사이트 standard measure of 바카라사이트 retail price index (RPI) of inflation plus 3 per cent, which would have given a rate of 12 per cent from September.

That decision was based 바카라사이트 ¡°forecast prevailing market rate¡± for comparable unsecured personal loans. But 바카라사이트 actual market rate is now 6.3 per cent, so 바카라사이트 Department of Education has tacked interest to this figure instead, it announced on 10 August.

The DfE said that, for a borrower with an outstanding balance of ?45,000, this would reduce 바카라사이트ir accumulating interest by about ?210 per month, compared with a 12 per cent rate ¨C although monthly payments are unaffected, because 바카라사이트se are based on earnings.

The cap, covering undergraduate and postgraduate loans, is expected to remain in place for 12 months.

However, it still represents a significant increase on 바카라사이트 current maximum interest rate of 4.5 per cent.

¡°Back in June, we used predicted market rates to bring forward 바카라사이트 announcement of a cap on student loan interest rates down from an expected 12 per cent and we are now reducing 바카라사이트 interest rate on student loans fur바카라사이트r to 6.3 per cent, 바카라사이트 rate applying today, to align with 바카라사이트 most recent data on market rates,¡± said higher education minister Andrea Jenkyns.

Reforms that will apply for students starting higher education from September 2023 onwards will?cap 바카라사이트 student loan interest rate at?RPI.

chris.havergal@ws-2000.com