The start of the New Year has brought some much needed relief for Britain’s higher education students with the news that the interest rate on student loans has been cut to 3 per cent.
According to consumer group Which?, recent cuts in the Bank of England Base Rate has resulted in the interest charged on student loans being reduced from 3.8 per cent to 3.0 per cent.
Student loan interest is linked to the retail prices index (RPI) measure of inflation each March and adjusted accordingly the following September.
In 2008 the interest rate stood at 3.8 per cent, which marked a welcome reduction from the previous year's rate of 4.8 per cent.
The rate cut was in response to falls in the Bank of England Base Rate, which dropped from 4.5 per cent to 3.0 per cent in November 2008 and again to 2.0 per at the start of December.
The December base rate cut forced the Student Loans Company to adjust the interest it charges as the rate cannot be more than 1 per cent higher than the base rate set by the Bank of England.
Student Loan Interest Rate Slashed
Student Loan Interest Rate Slashed
Fri, 09 Jan 2009
Recommended links
Your online student finance resourceStudent loan quote
Student finance guide
Student bank accounts
Student credit cards
Loan tips for students
Student Loan interest rates
Drop In Student Loan Interest A Strong Possibility
Student Loan Interest Could Disappear in 2009
Government To Freeze University Tuition Fees
| Student Loan news |
|---|
| Government needs to provide student finance support - Tue, 15 May 2012 |
| Lack of job opportunities in finance for student loan borrowers - Fri, 11 May 2012 |
| Scholars demanding more for their student finance outlay - Fri, 04 May 2012 |
| More News |