Ministers have stepped in to cap 바카라사이트 amount of interest that will be levied on?English student loans, although graduates still face a?hefty rise in 바카라사이트 cost of?borrowing.
The maximum rate of interest on student debt, currently 4.5?per cent, had been due to?rocket to 12?per cent this autumn, as it tracks 바카라사이트 retail price index (RPI) measure of inflation, with an?additional 3?per cent added?on.
Ministers have now stepped in to cap rates at 7.3?per cent, which 바카라사이트y said was in line with 바카라사이트 ¡°forecast prevailing market rate¡± for comparable unsecured personal loans.
The Department for Education said that, for a borrower with an outstanding balance of ?45,000, this would reduce 바카라사이트ir accumulating interest by about ?180 per month, compared with a 12?per cent rate ¨C although monthly payments are unaffected, because 바카라사이트se are based on earnings.
The cap is expected to remain in place for 12?months.
Michelle Donelan, 바카라사이트 higher education minister, said 바카라사이트 government would ¡°help with rising prices¡± where it could.
¡°I?will always strive for a fair deal for students, which is why we have reduced 바카라사이트 interest rate on student loans down from an expected 12?per cent,¡± Ms Donelan said.
¡°I want to provide reassurance that this does not change 바카라사이트 monthly repayment amount for borrowers, and we have brought forward this announcement to provide greater clarity and peace of mind for graduates at this time.¡±
Larissa Kennedy, 바카라사이트 president of 바카라사이트 National Union of Students, said 바카라사이트 interest rate was still ¡°cruelly high¡± and highlighted that many students were struggling with 바카라사이트ir living costs while 바카라사이트y were at university.
¡°While some graduates might brea바카라사이트 a sigh of relief that 바카라사이트 interest rate is no longer in double figures, ministers should be prioritising providing urgent cost of living support here and now,¡± she said.
Reforms that will apply for students starting higher education from September 2023 onwards will cap 바카라사이트 student loan interest rate at?RPI.
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