How is this possible?
From the myfinances.co.uk site:
"The interest rates on student loans are usually tied to inflation on the retail prices index (RPI) in March for the coming year. RPI for March, in data released this week by the Office for National Statistics, was negative at -0.4 per cent. The Department for Innovation, Universities and Skills (DUIS) has
confirmed it is in discussions with the Treasury over what the rate
from September should be – and a decision is expected soon."
Meanwhile, the Guardian is reporting:
"University students could earn, rather than have to pay, interest on their student loans from September now Britain has gone into deflation. Interest rates on student loans are linked to the Retail Prices Index (RPI), which went below zero this month for the first time in five decades, economists said today. This means students would have loans which have an interest rate that is effectively paying back the money they owe. But this will only be the case if ministers do not change the way that interest rates on student loans are calculated."
Imagine that, a student loan that pays for itself, that product has potential!
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