Student loan repayments set for hike

THOUSANDS of graduates are facing a hike in their student loan repayments as a result of the inflation rise revealed this week. The interest rates on student loans taken out before 1998 are based on the retail prices index (RPI) measure of inflation reported for each March. The RPI figure for last month was 4.4 per cent, meaning many graduates still paying off their student loans face a sharp increase in repayment rates from September.

Graduates paying off loans taken out since 1998 will continue to pay interest equal to the base rate (currently 0.5 per cent) plus 1 per cent.