Brexit has as direct effect the falling of the pound, and result is that both students and graduates are affected by it, because the interest rate will grow with more than 25 times. It is known that students need loans to pay their college years, and Brexit will make them pay hundreds of pounds extra. The immediate effect of Brexit was a rise in the inflation, and for students this means that they will have to pay an interest rate that will grow with a third from the sum they paid until now. Therefore, if in the past they had a rate of interest of 4.6, now they will have to pay around 6.
If it were to look at the sums students in England pay for their studies, it is considered that they have the highest debts. It is well-known that the study takes away much energy. In this case, we recommend you to distract from your problems and spend time with pleasure checking a website ValleyGames, providing all popular online casino activities. And if you will be lucky enough, you may even win some cash. So, the persons who enrolled to university in September will have to pay fees higher than £9000 per year. As people could imagine, this level of debt is higher than students from many countries could afford.
Are there any solutions that could help students?
To make sure that the number of students will not decrease in the following years, The Department of Education considered that an effective solution would be to ask private investment organizations to buy the student loans. However, this would have a devastating effect on the taxpayers, because they will have to deal with marketisation.
The Department has not decided yet if they would choose this solution or not. In addition, they will have to communicate the new rate of interest for the loans, because students have to know from the beginning if they afford to pay for their studies. The students who have taken a loan after 2012 will have to calculate the rate according to the RPI from the previous year. To have an idea on how much they will have to pay, it is worth mentioning that in 2015, the rate was 1.6 per cent, and in 2017, it was 3.1 per cent.
What students should expect to experience in the future?
The students will have to pay the new interest as they are still in college. When they will graduate the interest for their debts will be connected to their income and this means that if they will earn more than £40.000, they will have to pay around 6 per cent. This means that people should expect to see that their student loans grow more than 20 times. The students who started their studies before 2012 will not be affected by this measure. Many students who are aware that they will be affected by this issue experience stress periods and their mental health is strongly affected. In addition, there are cases when debt collectors have to chase students, because they did not managed to pay their rent, for example. Also, there are situations when students cannot afford to pay for their food and daily necessities, because they had to save money for their studies. The result of Brexit is that student loans that are already considered some of the biggest of the world will become even more expensive in the years to come.