Don’t increase student loan interest rate to 12%, and tie to base rate instead

Closed 35 signatures

What the petition asks

The Govt should not increase interest rates on student loans. They should match the Bank of England base rate instead, currently 0.75%. If all current Plan 2 students are charged interest of 12%, the yearly interest charged a loan of £30k would be around £3600, which is added to the principal.

If a talented student who succeeds and earns just in excess of £27,296 per annum is also charged 12% per annum, on a £50,000 loan the interest charge would be £6000 per annum on the principal amount. They would also be charged another 12% on the interest accumulated during the third year of £432, therefore a total interest charge of £6432.

For lower earners, if the interest rate was increased to 12% and the repayment amount not adjusted, the interest charge would always exceed the repayment amount and the loan value will never get repaid, and repayments will run into the age of 60s.

Timeline

27 Apr 2022	Petition opened for signatures
10 Nov 2022	Closed to new signatures

Key facts

Signatures 35

Status Closed

Department Department for Education

Opened 27 Apr 2022

Closed 10 Nov 2022

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