You could be on the money if you have a student loan
26/02/09
New research reveals that student loan companies could have to start paying back to the borrowers as a result of the way interest is charged on the loans.
The reason behind this is due to the way interest is charged on the loans which is by the RPI, the Retail Price Index in the month of March or the Bank of England base rate plus one per-cent, which ever is the lowest of the two.
Some experts suggest that by the month of March the RPI reading could be negative resulting in student loan borrowers cashing in.
“The Treasury have yet to make a decision but we are talking to the government about it right now,” commented a spokesperson for the Department for Innovation, Universities and skills.
“Should it happen next month that RPI goes negative, then a decision would have to be made. Talks are going on as we speak, because this wouldn't just affect student loans but other loans as well.”
