Loanly hearts: interest rates soar by 75 per cent for student loans

Image: David Morris

Those set to graduate in the near future have faced a string of bad news over the last week.

According to the Independent, the interest rate for student loans are set to rise by 75 per cent in September. This is due to a drastic increase in retail prices index (RPI), the factor determining the amount of interest for students.

Last March, RPI was only 0.9 per cent, but has grown to 1.6 per cent at the same time this year. The increase will affect students of all years dating from 1998 and including prospective students.

Meanwhile for those looking for jobs after graduation, a study from the Institute of Fiscal Studies has highlighted the difference in graduate earnings based on family wealth.

It was proved that men from high-income household earn 60 per cent more than those from low-income households, with a 45 per cent different for women.

This has been attributed to both the type of university that a student attends and their chosen degree.

In addition to this, a pay gap between female and male graduates continues to be an issue. According to the Institute of Fiscal Studies women still earn £3,000 less compared to their male counterparts even ten years after graduating. This is despite statistics proving that women often outperform men academically whilst at university.

Those studying degrees including creative arts and mass communications are amongst the lowest earners, with economic and medicine graduates coming out on top.

In response to the study NUS President Megan Dunn said the results highlighted the need for “so much work” to ensure that students are treated equally.

The report was created after using data from 250,000 graduates living in England. It is hoped the results will be used to help students, and especially those from lower-income backgrounds, to make an educated decision choosing their degree.

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