Interest on student loans set to rise by a third

first_imgThe interest rate charged on student loans is set to rise by a third as the pound’s post-Brexit plunge has caused an increase in inflation.Whilst current students and new starters are currently charged a rate of 4.6 per cent on their loans, new students this year can expect rates to jump as high as 6.1 per cent from September.Student loan rates are updated annually and are calculated by using the March retail price inflation figure (RPI) plus 3 per cent. Since March 2016 the UK’s RPI figure has risen dramatically from 1.6 to 3.1 per cent.The advantages of today’s record low interest rates are being reaped by many consumers, but not by students. Many graduates and students alike will see their student loan’s interest rate surge upwards by more than 24 times the Bank of England’s base rate of 0.5 per cent.The magnitude of this increase, and the extent to which it will impact each individual, very much depends on when a student entered higher education.The only group not to experience any increase are those who began their university careers between 1998 and 2011. Everyone else will be affected.Nevertheless, the scale of the jump is disconcerting. It’s true that some students who started university after September 2012 may seek comfort from knowing that they will only have to begin repaying their loan after earning more than £21,000 a year.Jake Butler, an expert at money advice website Save the Student, said: “I was expecting an increase to student loan interest this year, but this is worse than expected. It really demonstrates that the interest on loans under the new system is far too high and should be reassessed.“But students need to remember that it’s highly unlikely they’ll pay off their full loan debt before it’s wiped 30 years after their graduation.“So in reality, this increase is just adding to the massive amounts of accumulative student loan debt that the government will never see.”last_img read more

Odds & Ends: Gary Barlow Wants to Find His New Musical Star on TV & More

first_img Here’s a quick roundup of stories you may have missed today. Gary Barlow Eyes Reality Casting ShowIn September, Gary Barlow revealed to Broadway.com that he’d love to write a Take That musical in London. Now, he’s eyeing a headliner or two. According to UnrealityTV, the Finding Neverland composer is developing a reality casting competition for the U.K.’s BBC One, similar to Andrew Lloyd Webber’s I’d Do Anything, Any Dream Will Do and Over the Rainbow. Further information has yet to be revealed.La La Land Gets Holiday Release DateBad news, movie musical fans: You’ll now have to wait a little bit longer to see Emma Stone and Ryan Gosling sing and dance on the big screen. The previously reported La La Land film has been pushed back to a December 2 limited release before going wide on December 16. The flick was initially set to premiere this summer. It follows an aspiring actress in L.A. and her relationship with a charming jazz musician.Donald Trump’s Producing PastLong before Donald Trump was making headlines for his remarks on the campaign trail and causing Bialystock and Bloom to come out of the woodwork, the presidential candidate had a quick turn as a Broadway producer. In 1970, Trump had top billing on the Richard Seff play Paris Is Out!. According to the New York Times, Trump split the $140,000 capitalization evenly with lead producer David Black. Unfortunately for both, the play closed after less than 100 performances at the Brooks Atkinson Theatre. Black recalled that following the closing notice, Trump asked what he should do next, and Black responded, “Why don’t you try real estate?” You know what happens next.Rufus Wainwright Will Bring Judy to Carnegie Hall AgainOur heart strings are zinging! Grammy nominee Rufus Wainwright will return to the New York stage to reprise his 2006 show Rufus Does Judy at Carnegie Hall. The concert, inspired by Judy Garland’s Judy at Carnegie Hall, features the numbers Garland performed in that epic 1961 show and several special guests. Get ready to get happy with Wainwright on June 16 and 17. Gary Barlow(Photo: Bruce Glikas) View Commentslast_img read more