Th age Committee sees zero reason for making use of RPI to help you estimate student loan rates of interest
Thinking of the rate of interest
59. The newest public’s comprehension of the rate was a repeated motif regarding the Committee’s facts sessions for this query. Previous Colleges Minister Jo Johnson said of rate of interest:
It’s a badly know element of your program. […] Hardly any individuals understand the modern characteristics of your rate of interest-the point that simple fact is that most graduate tax-such as aspect in the system, you might say, in the same way it is progressive and it is redistributing resources about higher getting students […] to those who will be earning less. 57
