Who decides the student loans interest rate?
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Written on: 10.11.2009 [19:58]
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Liam
Liam
Topic creator
Posts: 1
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Who is in charge of determining the student loans interest rate? Is it based on the base rate by the government? Or set according to different rules? |
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Written on: 15.11.2009 [23:43]
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Isaac
Isaac
Posts: 4
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The latest student loans have 0% interest. Previously, the interest rate fluctuated according to the current level of inflation. This was just to ensure that what was repaid was equal in today's money to what was borrowed! Inflation causes money to 'lose' its value. £100 fifty years ago was worth more than today. If the loans didn't increase in line with inflation, you could borrow £10,000 today, but in thirty years this £10,000 would be 'equivalent' to only £3,000. You don't have to pay huge fluctuating interest rates as you would for a typical loan. |
| Also very interesting: | |
