#StudentLoan #InterestRates #Finance
Have you ever wondered why student loan interest rates are still so high? 🤔 It seems like they should have gone down by now, but my loan is telling me I’m paying 6.5% interest even though the RPI is only 2.8%. What gives?
Here’s what I found and my thoughts on a possible solution:
– Loans are supposed to have an interest rate at the lower of the RPI or the Bank of England base rate plus 1%
– According to the official guidelines, the interest rate calculation should be lower than what some of us are actually being charged
– Miscommunication or errors might be the reason why some students are still paying higher interest rates than they should be
Possible Solution:
– Contact Student Finance to clarify the interest rates and ensure they are being calculated correctly
– Seek advice from financial experts or student loan advisors for guidance
– Share your experiences and concerns on social media or with others to raise awareness and potential solutions
Let’s work together to tackle this issue and help each other navigate the complex world of student loans! 💪📚💰
The rates are changed annually in September based on the RPI in March. Changes to the base rate are reflected immediately though, when that is controlling the rate.
It’s just another rip off. Goes up very fast, comes down very slowly. Same with mortgage rates, although there’s more market competition that forces them to react a bit quicker.
Because the rates aren’t updated every week, they’re normally reviewed annually
From the very page you linked:
>When the interest rate changes
>The interest rate is usually set on 1 September each year, based on the Retail Price Index of the previous March, but it can change during the year too.
Your rate was capped below the normal boe+1 or RPI rules for the last year or so, so expect it to come down as slow as it can to recoup some of that loss
You’re lucky, mine is at 7.9%. Loan just went over £70k