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Tuesday, September 1, 2009

Deflation pushing interest rates below zero student loans

UK government-backed student loans system uses the market price index (FI) determine annual interest rate with effect from 1 September. RPI measures became negative March as the recession deepened, which means that the rate you are borrowing for students before 1998, which is now minus 0.4%.

Change negative territory for the first student loan program, and according to reports, about 390,000 graduates will benefit from. At the same time, the Student Loans Company was approximately zero, 3.26 million students and graduates with loans after 1998.

The company has defended the decision not to describe the degree of deflation of the credit for 1998, already "well, that the subsidies".

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