We're talking student loans. And that's because it's looking like they could cost the government an extra eleven billion pounds a year due to high interest rates. So, could this impact students hoping to take out loans in the future? Well here's what we know so far.
The interest rates on government borrowing mean that student loans are expected to cost the government an additional amount of around eleven billion pounds per year. This is because the interest that the government has to pay back for borrowing is currently higher than the rate that people are paying back on their student loans.
In the past, the government would tend to make a loss where ex-students were unable to pay back their loans, but this was always balanced out by those who ended up paying their loans back in full. However predictions indicate that this will no longer be the case.
This could mean that conversations now begin around increasing interest rates on student loans, though the report into the matter does wish to emphasise that this probably wouldn't impact people for decades yet.
