Friday 15th of May 2009
Graduates who still owe money through student loans are to be charged interest of zero per cent from September, it has been confirmed.
The level is linked to the retail prices index (RPI) rate of inflation, but with this having fallen to -0.4 per cent there was speculation that university leavers would effectively be paid.
But the Student Loans Company revealed that this will not be the case and a statement read: "Borrowers repay nine per cent of their earnings over the income threshold of £15,000. Whatever the rate of interest is, that monthly repayment will not change."
Graduates who are struggling to repay their student loans along with other borrowings may wish to consider debt management plans, as these could enable them to determine more affordable repayment solutions - although they will not cover student loans.
Ricky Bruce, financial researcher at Moneyfacts.co.uk, recently advised consumers to pay off student loans early if they can afford to do so, but added that the most expensive debt should be addressed first.
