Select Committee on Education and Skills Minutes of Evidence


Annex 4

PROJECTIONS FOR VARYING INTEREST ON STUDENT LOANS

CASE STUDY—low-income graduate
Interest rate on student loan
4.0 per cent
2.6 per cent
Difference
Initial starting salary
£ 14,500.00
£14,500.00
Total interest
£7,883.74
£3,913.13
£3,970.62
Total debt repayed
£19,733.34
£15,442.46
£4,290.88
Age on debt completion
42
39
3
CASE STUDY—high-income graduate
Interest rate on student loan
4.0 per cent
2.6 per cent
Difference
Initial starting salary
£29,000.00
£29,000.00
Total interest
£2,099.66
£1,218.76
£880.91
Total debt repayed
£ 13,949.26
£12,748.09
£1,201.17
Age on debt completion
28
27
1
CASE STUDY—low-income graduate with career break for three [email protected]@(ie raises family)
Interest rate
4.0 per cent
2.6 per cent
Difference
Initial starting salary
£14,500.00
£14,500.00
Total interest
£9,978.30
£4,819.14
£5,159.16
Total debt repayed
£21,827.90
£16,348.47
£5,479.42
Age on debt completion
45
42
3
National Union of Students May 2002





 
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Prepared 19 June 2002