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Graduates protest at student loan rate increases
Wednesday, 24 October 2007
Life after graduation
Graduates and students have launched an online campaign against the recent decision by the Student Loans Company (SLC) to double the rate of interest on their loans.
Following the decision by the SLC in August to increase their loan interest rate from 2.4 to 4.8 per cent, a Facebook group was launched in protest at the announcement and the group now has 15,000 members.
The establishment of the group follows the success of a National Union of Students-led Facebook campaign earlier this year that persuaded HSBC to freeze plans to abolish its interest free overdraft for graduates.
Writing on the campaign's page its founder, Rahul Tharkrar, said: "This is extremely unfair, especially given the limited notice we have had to this massive change."
According to figures published by the SLC earlier this year there is a total of £1,845 million of student loans awaiting repayment, with 249,000 graduates currently repaying their student loan debt.
A survey undertaken by Push.co.uk in August 2007 indicated that student debt is now higher than £4,000 for each year of study, with students starting university in 2007 facing average graduate debts of £21,500.