Horror for British students: interest on student debt to 12% | Money

In the UK, student loan interest is linked to inflation, which is skyrocketing there too. Currently UK graduates pay 1.5% on their debt. That would be 9% from September. British graduates have 30 years to repay the loan. If they do not earn enough for this, the remainder of the loan is waived.

Those who earn a lot, the limit is currently just under £50,000 on an annual basis (more than €60,000), pays three percentage points more in interest. These graduates therefore now pay 4.5% and run the risk of having to pay 12% in the future. Interest rates will be revised again in March 2023.

Thousands of pounds

Anyone with a student loan of £50,000 would have to pay around £3,000 in interest on the student loan in six months at 12% interest. That’s £500 a month, in interest only.

In the Netherlands, the interest on student debt is linked to government loans. The interest rate is currently 0%, just like last year. Those who graduate will receive the same interest rate for at least five years. After that, the interest is revised. Debts incurred after 2015 must be repaid in 35 years.

—