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Some Student Loan Balances To Be Paid Interest - Times
From tomorrow, for the first time, almost 400,000 university-leavers will be paid interest for borrowing money. Thanks to a loophole in repayment terms and conditions, graduates who started university before 1998 will be paid 0.4 per cent of their student loan balances.
The recipients, now in their late twenties and thirties, will receive no cash payments but the money will be deducted from their outstanding loans.
The payments are the result of borrowers being charged an interest rate equal to the retail prices index (RPI), which has turned negative with falling prices.
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