Have your say on government e-petitions

Don’t increase student loan interest rate to 12%, and tie to base rate instead

Submitted by Sanjay Shah on Wednesday 13th April 2022

Published on Wednesday 27th April 2022

Current status: Closed

Closed: Thursday 10th November 2022

Signatures: 35

Relevant Departments

Tagged with

Bank of England ~ Bank of England Base Rate ~ Banks ~ Charged ~ England ~ Excess ~ INCREASE ~ Interest rates ~ Loan ~ Match ~ plan ~ Ratings ~ Run ~ student loan interest rate ~ student loans ~ talent ~ talented ~ The Bank of England

Petition Action

Don’t increase student loan interest rate to 12%, and tie to base rate instead

Petition Details

The Govt should not increase interest rates on student loans. They should match the Bank of England base rate instead, currently 0.75%. If all current Plan 2 students are charged interest of 12%, the yearly interest charged a loan of £30k would be around £3600, which is added to the principal.

Additional Information

If a talented student who succeeds and earns just in excess of £27,296 per annum is also charged 12% per annum, on a £50,000 loan the interest charge would be £6000 per annum on the principal amount. They would also be charged another 12% on the interest accumulated during the third year of £432, therefore a total interest charge of £6432.

For lower earners, if the interest rate was increased to 12% and the repayment amount not adjusted, the interest charge would always exceed the repayment amount and the loan value will never get repaid, and repayments will run into the age of 60s.

You can't sign this petition because it is now closed. But you can still comment on it here at Repetition.me!

Have your say on this petition!

comments powered by Disqus

repetition.me is a Good Stuff website Mon, 28 Nov 2022 01:47:50 +0000