Graduate debts look set to rise. Nearly 3 million students and graduates will see higher interest rates on their student loans following the latest rise in the rate of inflation. The Student Loans Company resets the interest rate payable on September 1st based on the level of Retail Prices Index (RPI) inflation rate in March. RPI unexpectedly rose to 4.4 percent last month which could see many faced with higher monthly debt repayments. The interest rate on a loan depends on when it was taken out. Those taken out before 1998 will see rates based on the RPI level in March while those taken out later will be set at either that level or the bank of England’s base rate of interest, plus 1 percent. There are fears the increase will lead to more students facing bigger debt problems.
Graduate debts set to rise
April 22, 2010 By
