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There is no reversal of the 6.1% interest rates for students.
Governments are not postponing schedules to raise interest rates on study credits in England - which will go up to 6.1% from the fall semester." Speculations had been made about a rethinking of interest rates because people were afraid of excessively high indebtedness. However, on Tuesday the Ministry of Education and the Students loans company endorsed the suggested raise.
According to the Ministry of Culture, "borrowers will only repay what they can afford". Labour Party Silhouette Minister Angela Rayner said young Africans were facing a coalition that saw "education as something that can be bought and their desires as something that must be taxed". It excludes proposals that the federal authorities consider restricting the interest increase for students' loan to study dues and subsistence from September 2017 to August 2018.
However, there has been no news as to whether the federal authorities will press ahead with a further rise in student dues for 2018, which would raise them to over £9,500 a year. There will be literally hundred of a thousand young students learning about their graduation results and places this weekend - and those who take classes this fall will be credited 6.1% on arrival.
The Institute for Fiscal Studies has estimated that, with tuition costs rising to 9,250, the student has accrued 5,800 pounds of interest before graduating. Raising interest costs from 4.6% to 6.1% also applies to other former college graduates since the 2012 fee was raised to £9,000.
Interest is charged on the basis of the March RPI plus a further 3%. In the parliamentary elections Labour fought for the abolition of student dues - and after the elections there was further discussion about whether student dues and interest were unacceptable.
The former Labour Secretary Lord Adonis has described the interest cost as "unacceptable" and the leader of the Russell Group of Unions has demanded a revaluation of interest levels. Labour MEP Angela Rayner reproached the Labour authorities for "making these changes happen without the MEPs being able to vote". According to a spokesperson for the Ministry of Education:
"Like always, borrower will only repay what they can buy, so no one will see the payments increase every month and only the top earner will be paying the top interest rates. It says that credits give "protection not offered by other lenders", such as not demanding repayment if earnings fall below 21,000 and all outstanding debt is disbursed after 30 years.