BBC NEWS | Student Loan INTEREST RATE TO RISE TO 12 PERCENT Due To Inflation

Student Loan Interest rates are expected to rise to 12% for the 6 months period from September 2022 to February 2023 due to the increase in the Retail Price Index (RPI) to 9%. I spoke to BBC News yesterday about…

BBC NEWS | Student Loan INTEREST RATE TO RISE TO 12 PERCENT Due To Inflation

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Student Loan Interest rates are expected to rise to 12% for the 6 months period from September 2022 to February 2023 due to the increase in the Retail Price Index (RPI) to 9%. I spoke to BBC News yesterday about what this means for students and graduates. More info below. Thoughts?

★★ FURTHER EXPLANATION ON THE 12% STUDENT LOAN RATE ★★

◼️ The increase in student loan interest rates applies to students and graduates in England and Wales
◼️ The increase will also affect post-grad students whose interest is calculated based on RPI + 3%
◼️ The latest RPI rates were published on the 13th of April 2022 re March 2022 and the current RPI rate is 9%
◼️ The 12% rate mentioned applies to those on Plan 2 loans with their interest rate calculated as RPI + 3%. That rate of 12% will apply from September 2022 to February 2023. After that, the rate is expected to drop as the interest rate cap will apply.
◼️ Note that not everyone will incur interest at 12%. See more below
◼️ DURING STUDY – Interest is charged at RPI + 3%. Previously you would have had interest charged at 4.5%. From September 2022, it will jump to 12% for 6 months.
◼️ AFTER GRADUATING – Interest is charged depending on what you earn. If you earn below the repayment threshold of £27,295, you pay interest at RPI (expected to be 9% in September). If you earn between £27,295 and £49,130, you’ll pay interest based on a sliding scale of between 9% and 12%. If you’re a high earner and earn above £49,130, you’ll be charged interest at 12% from September (i.e. RPI + 3%)
◼️ Those on higher incomes are most likely to be affected by this in the future.

Institute of Fiscal Studies analysis of this: https://ifs.org.uk/publications/16024

Full credit to BBC News for this clip. Watch the full episode here on “The Context” with Christian Fraser:

https://www.bbc.co.uk/iplayer/episode/m0016gk2/the-context-with-christian-fraser-13042022

★★ OTHER VIDEOS TO WATCH ★★

STUDENT LOANS UK EXPLAINED – https://youtu.be/CPMxk2hV2I0

How Brits Are Reacting To The Rising Cost of Living – https://youtu.be/ukEgJVvY-6A

Energy Price Increases – Urgently Do This To Save Money – https://youtu.be/GOzUSYLohYg

50 BEST Side Hustle Ideas For Extra Money – https://youtu.be/z-MNDvHhIHY

How To Beat Inflation – https://youtu.be/KBwq-Ma_EZM

How To Save Money Driving An Electric Car – https://youtu.be/KxDWAsCzfRE

How We’re Reducing Food Waste At Home – https://www.instagram.com/p/Ca9n1ziKYyV/

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How To Invest During ANY RECESSION **without worry** (2021) – https://youtu.be/DJihSTlv0EY

How To Invest £100/month – https://youtu.be/xYwGXW6c728

HOW TO INVEST £1000 – https://youtu.be/0jRQk8Xkvxg

How to INVEST IN STOCKS for DIVIDEND Passive Income – https://youtu.be/fQBcU90ZVKQ

ETFs vs INDEX FUNDS | How To Invest Money In Stocks UK – https://youtu.be/dtEPOqfIxRI

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Investing For Beginners UK (STEP-BY-STEP GUIDE) – https://youtu.be/u4n8f-YL5_I

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MARY:

I’m married to Ken and we have two boys aged 6 and 4. I’m a Londoner, born in Hackney! 🙂

Day to day, I run the operations of The Humble Penny as a creative – doing everything from marketing to video editing. I studied Multi-media design and technology at Uni.

KEN:

I’m a husband, dad, and a First-Generation Immigrant to the UK. I started life poor in the UK and I’ve spent the last 20 years on a steep journey of Personal Development.

Former CFO with over 12 years experience in the investment business. I’m also a Chartered Accountant and hold an MBA from Cambridge University.

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BBC NEWS | Student Loan INTEREST RATE TO RISE TO 12 PERCENT Due To Inflation

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