Credit crunch will not hit student loans

Wed, 09 Apr 2008

The credit crunch should not have an undue impact on student loans, one expert has claimed.

Alistair Lomax, executive director of student debt charity UNIAID, explained that a fall in interest rates should benefit those who have to make repayments on their student loans .

He said: "Student finance support arrangements are pretty insulated from the rest of the economy ... So, if anything, there's going to be a positive impact to students [from the credit crunch], because the interest rates are lowered in order to keep the economy buoyant."

Mr Lomax added that if the Bank of England base rate is lowered, then the cost of repaying student loans will also fall.

However, he did warn that "recovery factors" put in place after the credit crunch will have an impact on students further down the line.

But, for now, those with student loans should actually benefit from the situation, he concluded.

According to the charity, the average graduate debt it currently £17,500.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

Paying Too Much?

7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form