§ Earl Russell
asked Her Majesty's Government:
Whether there is any ceiling to the interest rate which may be charged to students for loans under Clause 16(3) of the Teaching and Higher Education Bill. 11–11.1481
§ Baroness Blackstone
Our intention is that the interest rate applied to loans should continue to be linked to the RPI as at present. However, the detailed arrangements for accruing interest will be complex because of the time lags which will result from collecting loan repayments through the tax system. We are currently considering the issues and will, if appropriate, bring forward an amendment to the Teaching and Higher Education Bill in due course to clarify the position.