This petition was submitted during the 2017–2019 Conservative government
Petition Remove rip-off compound interest from student loans
Student loans charge a huge 6.1% interest, even during study. Worse, the 6.1% is compounded monthly, meaning interest is added to the loans every month, making loans bigger, so the next month the interest costs even more; the loans get bigger and interest costs increase every month. It is a rip-off.
More details
Even though the base rate is only 0.25%, students are exploited by horrendous 6.1% interest, compounded monthly, being charged on their loans – this can double or treble the size of the loans and massively increase interest costs, too. Most ‘normal’ loans do not do this. It is exploitative. No wonder student loans get bigger even while borrowers are paying off their loans. Sign the petition to remove interest from student loans. More info. here: https://www.afairdealforstudents.com/
This petition is closed This petition ran for 6 months
Related activity
MPs investigate student loans
A cross-party group of MPs called the Treasury Committee are investigating student loans.
They are looking at recent changes to the student loan system including:
• the repayment threshold
• interest rates
• tuition fees
• university finances
On Wednesday 18 October at 2.45pm they asked academics about:
• the impact of student loans on public finances and students
• whether fees mean that there is a 'market' for higher education
You can watch the session here:
http://www.parliamentlive.tv/Event/Index/2f85d27f-54ba-4ac0-9890-8c8e8dd3fee9
You can find out more on the Treasury Committee's webpage:
http://www.parliament.uk/business/committees/committees-a-z/commons-select/treasury-committee/inquiries1/parliament-2017/student-loans-17-19/
You can follow the Treasury Committee on Twitter for updates: @CommonsTreasury
What is the Treasury Committee?
The Treasury Committee looks at and questions how the Treasury:
• is run
• spends money
• decides on its policies
It's a cross-party committee of MPs and is independent of the Government.
You can find out more about Treasury Committee on its website: http://www.parliament.uk/business/committees/committees-a-z/commons-select/treasury-committee/
This is a ‘select committee’. Find out how Select Committees work:
https://www.youtube.com/watch?v=o_2RDuDs44c