Student loans are linked to the RPI. Theoretically, when this rises, we should be charged more interest, and visa versa. Fair enough. However, next year, we’ll be charged 0% interest. That’s not all though. If the Student Loans Company followed the RPI strictly, we’d actually be given an interest rate of -0.4%, and some students are complaining that we aren’t.
Now I don’t know much about economics, but that doesn’t work somehow. I understand the appeal of free money, but imagine the dynamics of the economy if people took out loans and expected that they’d never have to pay them back, or that they’d pay for themselves.
Oh wait…

This entry was posted on Saturday, May 23rd, 2009 at 1:21 pm and is filed under Uncategorized . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.