NUS: Commercial rates 'unacceptable' for student loans

06 September 2007
Recent calls for commercial rates to be applied to student loans are "unacceptable", it is claimed.

An NUS spokesperson made the comments noting that such a move would not take the realities of graduate life into consideration.

While rates on student loans are currently set to match inflation and the average loan taken out by students being £3,330 in 2005 to 2006, avocations for a commercial rate of interest to be applied to them are "cropping up more and more".

The representative for the student organisation commented that debates over the link between student loans and inflation are causing people to suggest the application of a commercial rate,

"Graduates, especially when they've left university, are in a really vulnerable position and it's absolutely unacceptable to start putting a six per cent rate on student loans," the spokesperson argued.

Some £2,567.6 million was lent to higher education students during the 2006 to 2007 financial year, according to the Office for National Statistics.

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