10 signatures reached
To: Jo Johnson
Get fair interest rates for student loans
Fix interest rates on student loans at 1% above base rate. Guaranteed, and changeable only by act of parliament.
Why is this important?
Students are currently paying 6.1% on the loans they take out so they can complete their education. TO put this in perspective, the government and large banks can borrow money at 0.25% interest.
A 6.1% interest rate means that graduates will have to earn £55,000 a year just to keep up with the interest and prevent their loans getting larger. Its completely unrealistic, unsustainable and unfair. Its inevitable that most loans will never be re-paid and a generation will be saddled with un-payable debt.
Interest rates are this high because the government has sold the debt on to private companies who hope to make a profit on young people trying to get an education and make their way in the world.
We need people to go to university. We need a highly skilled workforce to drive the economy and tackle the urgent problems of the 21st Century with the creativity and innovation that Britain is known for. There is no excuse for charging students 24 times the base rate of interest.
Ask Jo Johnson, Universities minister to ensure fair interest on student loans now.