Graduates may soon have a new reason to enter the job market in a timely fashion, as the interest rate on student loans is set to double. Those taking out loans this year will see their interest rates jump from 2.4 per cent to 4.8 per cent, This is Money warns. Although this rate hike does not affect current graduates, the website points out that the typical student leaves university with £12,000 of debt - which could be considered an imposing figure even without the rate rise. The rate is decided upon once per year and comes into effect from September, while graduates are required to begin repaying the money from the April after they graduates - given that they are earning at least £15,000 per year. This year, graduates own a combined total of £3.2 billion when they leave university, which reflects a 167 per cent increase from 1997 figures.
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