Student Loan Interest Charges

[lala100]

I took out student loans between 1998 & 2002 which I have been making regular payments since 2003. At the time of taking out the loan I was advised the rate of inflation would be charged on to the loa each year. i have received this years final statement an I have noticed as of 01/09/2007 I am now being charged 4.8% interest as outlined on the advice leaflet. As I originally signed up on the basis of inflation being charged on any outstanding balance is there something I can do about this as I now feel this loan has been mis-sold to me and presumably thousands more???

Any advice would be appreciated

[Sol]

You are being charged at the rate of inflation.

 

Each year, in September, the interest rate either increases or decreases depending on the Retail Price Index. This is determined in April of that year as far as I am aware.

 

I think it's going down to about 3.8% this Sept.

[lala100]

The rate of inflation has never been as high as 4.8% for a long long time, Also the leaflet state that they are charging interest, not inflation. I am going to request my original agreement and contact a solicitor, to charge interest as opposed to inflation is mis-selling, esp tot he tune of 2.4% dating back to september 07.

Thanks for your response though

[Sol]

You can have it checked, but it is at the RPI rate of inflation and it is considerably high at the moment.

[Faggil]

Yes, 4.8% was the RPI rate of inflation at the end of March 2007. That's what the student loans company charge as their APR for the year.