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
What are these?
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