A financial advice internet blog has hit out at the way in which interest is calculated on student loans .
The Money.co.uk blog labelled the current method as "disgraceful" and said the government should pay this charge themselves instead of levying it on graduates .
The online financial column claimed that the retail price index (RPI) measure of inflation, which is used to fix the student loan interest rate, is consistently higher than the consumer price index .
It added that students who believe their university loan tracks the inflation figure are being "cheated".
"What students don't have properly explained to them before they are coerced into taking on £10,000-plus of debt is that the UK runs a bizarre inflation system," the blog said.
"Those paying back the cash after finishing their studies are being hammered by interest rates of 5 per cent."
Student Loan Interest Attacked
Student Loan Interest Attacked
Fri, 22 May 2009
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