There may be good news for students who have taken loans. Students will get to see their debts reduce over time, even without repayments, as the interest rates turn negative in a move. Almost 390,000 graduates, having outstanding student loans will be able to benefit from this.
Interest rate on student loan sinks to –0.4%
The UK’s current period of Retail Prices Index (RPI) deflation, will see the interest rate payable on student loans taken out before 1998 sink to minus 0.4%. This will be the first time the interest rate has turned negative, since the Government-subsidized loan service was launched.
