The United Kingdom, (a/k/a: Mother England. f/k/a: The Little Island that Could), just lowered the student loan interest rate to 0%.
0%! God save the Queen:
More than 2.5 million students will pay 0% rate of interest on their loans from September, the government announced yesterday.
Hopes were raised last month that students would effectively earn money on loans after the Retail Prices Index (RPI), to which they are linked, dropped to -0.4%.
The new terms will apply to all loans taken out after 1998:
The new rate will affect those with outstanding student loans taken out after September 1998 as well as applicants for both maintenance loans and tuition fee loans in the current and next academic year.
Okay, it’s not quite a full student loan bailout, but it is a start. Let’s get into additional details after the jump.
Yesterday, many commenters railed against people who made the “bad choice” of getting the best education possible. Evidently, these people are not familiar with section 90 of the Restatement (Second) of the Law of Contracts.
In Great Britain, people seem to understand that saddling young wage earners with crushing debt is not the best pathway to economic recovery:
Wes Streeting, president of the National Union of Students, said: “We are pleased that the government has listened to the NUS’s concerns about how badly graduates are being affected by the current economic crisis.
“In the context of a recession, this is the best deal students and graduates could have expected.”
He said the NUS would continue to monitor student loan interest rates and make sure ministers were aware of students’ concerns.
Never underestimate how far bitching and complaining can get you in life. Old people, especially grandparents, simply don’t have the tolerance for the incessant whining of energetic young people. Eventually the government is going to zero out interest payments on student loans, just like grandma used to shove an ice cream cone in your mouth to shut you up while she watched Matlock.
Thank you, U.K. You’ve brought us one step closer to world where students can achieve the highest and best education possible without ever having to pay for it. Obama, your legion of young voters are patiently waiting for you to cave to their special interest.
Generation of graduates to pay 0% interest on student loans [The Guardian]
Cancel Student Loan Debt to Stimulate the Economy [Facebook]
Earlier: Student Loan Bailout: The Choice of a New Generation