This news about your student loan is going to shock you. And probably make you want to cry. Don’t read this if you’re already feeling emotional!
A graduate wrote an open letter to his MP (CCing in David Cameron, good one) showing how the interest on his student loan is putting him into further debt of £1,800 per year. Why? Because of the interest. The story is now, as we speak, going viral.
Did you know that the interest is actually A LOT of money?
The grad, Simon Crowther, was in the first wave of students whacked with £9,000 tuition fees. He believes he was mis-sold his loan because when he signed for it he was 18 and had no experience of doing so.
He told the BBC: “I was still in the sixth form at school when I agreed to the student loan. I had no experience of loans, credit cards or mortgages. Like all the other thousands of students in the UK, we trusted the government that the interest rate would remain low.”
The Student Loans Company said: “It is not the case that this individual’s interest rate has increased or that their loan has been sold,” said a Student Loans Company spokesman.
“The variable interest rates that would apply to his student loan are unchanged from those in force at the time of his application in 2012.
“All students that take out a loan must sign a declaration confirming that they have read the terms and conditions of the loan before it will be paid.
“These terms and conditions clearly set out the interest rates that the student will be charged, when they will start repaying and when interest starts accruing.”
Source: My student loan was mis-sold, says graduate
Student loans are so confusing! What’s the deal?
So there is a lot of info you need to be clued up on. Check out our article When do you actually pay back your student loan?
Sign up for the newsletter
Get news, competitions and special offers direct to your inbox
And we’ve got even more shocking news about your student loan. Share and enjoy *crying face*