Ministers intervene to cap student loan interest rate

Ministers in the United Kingdom have intervened to reduce a sharp rise in interest rates charged on student loans, after the recent increase in inflation which meant rates would treble for many graduates by the autumn, writes Richard Adams for The Guardian.

The Department for Education said the maximum rate from September is to be fixed at 7.3% rather than the 12% it would have reached by September, based on earlier inflation figures plus 3%.

The Department for Education said the change meant the accumulated interest of a borrower in England and Wales with a student loan balance of £45,000 (US$54,000) would fall by about £180 a month compared with 12% interest rates.
Full report on The Guardian site