Government Reduced Interest Rates To Zero Percent On Student Loan

May 21, 2009 - PRLog -- London (Ask4loan): As per the recent announcement made by the government, 2.5 millions students will not have to pay an interest on the student loans from the month of September.

Student loans are connected to Retail Prices Index which has decreased to -0.4%. According to the Students Loan Company, the decision is taken because, a lot subsidisation has already been made and government felt unable to justify why tax payers' money is being used for reduction of loans. The students loan balances with instantly reduced of those taking loans in 2009-2010.

Now the graduates will be able to repay the loan amount with ease because nine percent of earning over £15,000 is paid by the borrowers. However, the level of monthly repayment will remain the same.

Students Unions are happy on this decision of the government. According to Wes Streeting who is the president of National Union of Students, the union is pleased with the government's decision as the government has listened to the students and it is the best deal in this time of recession.

The decision of government has generated a new hope among student. It is being hoped that now students will be able to afford their education expenses more easily.

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