UK students receive unexpected windfall
The Student Loan Company will tomorrow advise up to 400,000 university leavers that instead of paying interest on their student loans they will actually be paid interest by the authorities over the next 12 months. As you may have guessed, the interest rate on these particular loans is linked to the retail price index which recently went into negative territory resulting in a 0.4% interest payment back to students.
However, the situation will only be relevant for those who started university before 1998 and have yet to pay off their student loans. Unfortunately, rather than receiving cash in hand the authorities will ensure that these credits are deducted from outstanding loan figures. As an example, those who took out a student loan of £10,000 before 1998 and have the full amount to repay will see their balanced reduced to £9960 next year.
While this is not exactly the Christmas bonus which many would have hoped for it is certainly something which will assist those potentially struggling to repay their student loans even 11 years after they were taken out. The student loan system is one which has attracted significant controversy due to the fact that many students are leaving university with significant debts before they even start their new jobs.
Share this..
Related stories
Kids 'happy' for parents to release equity
With the current state of pensions in chaos, equity release is becoming an option for more and more senior citizens and apparently, children do not mind if their parents use the family home in this way.Sarah Horner, spokesperson for Norwich Union, said that although it was important to discuss financial plans with other family members, most children would be supportive of their parents releasing t...
Read MoreBad credit effecting 6 million Brits
07/05/2015 People in the UK with a history of bad credit are being excluded from important parts of everyday life, according to research from. Debt Advisory Centre. People are missing out on securing a home, opening a bank account, getting car insurance or even being offered a mobile phone contract. A total of 2.7 million people in Britain claim that they have been rejected for a mobile pho...
Read MoreGovernment defends upcoming benefits reforms
Upcoming government benefits reforms might negatively affect pensioners' personal finances, the Times reports.The new legislation, which will come into effect from October, reduces the amount of time in which pensioners can claim backdated council tax and housing benefits, along with pension credits, from 12 months to three.This is despite 110,000 over-65s claiming from beyond this deadline in 200...
Read MoreRussian grain ban sees prices surge a further 6%
There are fears regarding inflationary pressure in the UK, and around the world, after the Russian government announced a forthcoming ban on the export of grain from the country. Due to abnormal weather conditions in Russia the authorities have decided to retain as much grain as possible within the country to feed domestic demand, something which has had a major impact upon grain prices on the com...
Read MoreSave money and improve your health
Even though many people believe that the UK recession is coming to an end there are still many more months of pain and suffering ahead for a large section of the UK population. However, this offers the perfect opportunity to cut back on luxuries such as takeaways, meals out and general excesses which could be deemed to be unhealthy. At the same time, as well as saving money on your monthly budget...
Read More