RACHEL RICKARD STRAUS: Here's why you should worry about student loan rate hikes - despite promises graduates may never pay the debt off
As interest on tuition fees escalates to rates now even more expensive than many commercial loans (6.1 per cent from the autumn), the same old lines are being trotted out about why students shouldn’t worry.
Top of the list is ‘don’t worry, you’ll probably never have to pay it off – outstanding loans are wiped after 30 years’. Second is, ‘you’ll only have to start paying it back when you’re earning quite well’. And the third is ‘you’ll be earning far more for having gone to university, so you’re still ahead’.
I’m not dismissing these arguments, but using them to cut off the debate I think masks some further injustices that rising interest rates create.