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Graduates 'should be informed' of student loan interest rates
Thursday, 30 April 2009
Financial advice website Moneyfacts.co.uk has said the government should make graduates aware of the interest they are expected to pay on their student loans.
The retail price index (RPI) has dropped below zero this week for the first time in fifty years, meaning that graduates with outstanding student loans could potentially get money back from the government.
Ricky Bruce, financial researcher at Moneyfacts.co.uk believes that government is keeping graduates in the dark by not commenting on the change in RPI and it has called for information so those with student loans know what is going to happen.
He advised graduates: "If you're expecting [RPI] to go higher in the future at some point - which, with long term forecast for RPI, you just don't know - it would make sense to pay off whatever debts are going to cost you the most at this point."
According to a recent study by the Institute for Employment Studies, the average graduate debt has risen, and it is now at £10,500 after a three-year course.