Tuesday, June 15News For London

Tag: loan

Think tank tells ministers to scrap interest on student loans

Think tank tells ministers to scrap interest on student loans

Politics, Student
A government think tank has released recommendations that interest rates on student loans should be done away with, saving money for students and tax payers. UK 2020, a centre right think tank, has advised ministers that interest on student loans shouldn’t just be cut, but removed completely. This would mean all current interest owed would be cancelled and all future rates of interest set to zero. The think tank's report claims interest charged on these loans is stacking up far quicker than any student is able to repay it, leaving a large amount of debt unpaid at the end of students repayment periods. Interest alone amounts to an average of £5,800 of debt on graduation, with the poorest 40 per cent of students racking up the most at £6,500. In his forward for the report Lord