Subject Predicate Object
MPMQUiUI
a
Resource
External thing
UK Government and Parliament thing
E-petition
UK Government and Parliament e-petition
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external identifier
309558
UK Government and Parliament Id
309558
e-petition UK Government and Parliament Id
309558
action
Cut student loan's interest rate to properly reflect Bank of England's base rate
background
Recipients of student loans are charged with an interest rate of up to 5.4% annually, despite the central bank's base rate of mere 0.1%. Students should not be charged an excessive premium on interest, and the student loan's interest rate needs to be reduced to reflect Bank of England's rate cut.
additional details
The interest rate of student loan is lower bounded by the Retail Price Index, an indicator of inflation. The rate is RPI + 3% for current students, and RPI + up to 3% after graduation. This means that Bank of England's interest rate cut in response to COVID-19 has no effect on student loan's interest, and an increase in inflation perversely leads to an increase in interest rate for students. This is vastly unfair and adds undue financial burden on students at this difficult time.
created at
2020-03-24T22:32:18.493000+00:00
updated at
2020-10-31T00:00:02.898000+00:00
closed at
2020-10-30T23:59:59.999000+00:00
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