student finance interest rate

I applied for student finance and I just received a declaration I have to sign

They want me to sign a declaration that I will pay all interest and charges etc. However they haven't even announced the interest yet. Am I the only one that feels weird about this ? Getting a loan before you know the interest rate ?

I feel a bit dumb right now so maybe I'm missing something but on the student finance website they have the interest rates until 31st august 2011 which is obviously before my course starts. what if the interest rate becomes higher than a bank maybe ? or something like that. Never know with the government.

Am I missing something here ? Anyone know what the interest rate will be for 2011.

Sorry if this is a dumb question but I'm confused on it :frown:

Reply 1

flipshot

No one knows because the rate of inflation for March doesn't get announced until next month.

Reply 2

hypocriticaljap

It will be the lower of RPI or bank rate + 1%.

Reply 3

kat2pult

I just thought that the interest rate was the rate of inflation?

Reply 4

hypocriticaljap

Then you thought wrongly.
It has been 1.5% since last September.

Reply 5

DarkWhite

Original post by hypocriticaljap

It will be the lower of RPI or bank rate + 1%.

This. The interest rate may actually change regularly, and is the lower of these two.

For example, March's RPI was 4.4%, so if the banks' base rate + 1% is greater than 4.4, then the maxmimum student loan rate of interest will be 4.4.

Reply 6

Arenas123

So should I hold of signing and sending my declaration until the interest rate is announced ?

Reply 7

GodspeedGehenna

Original post by Arenas123

So should I hold of signing and sending my declaration until the interest rate is announced ?

If you think you'll actually reject the declaration and fund your degree yourself, sure.

Reply 8

ChazSingh

Original post by GodspeedGehenna

If you think you'll actually reject the declaration and fund your degree yourself, sure.

This pretty much. Fund it yourself or don't complain o.O

Reply 9

Arenas123

Original post by GodspeedGehenna

If you think you'll actually reject the declaration and fund your degree yourself, sure.

Sarcastic? Not really helping anyone is it.

I could actually fund my degree myself. I wouldn't be particularly comfortable about it. My parents would lend me the money it took me to get by but I would have to sell my car and wouldn't be able to go out much or buy non essentials. They could potentially charge me less interest than student finance depending on the rate student finance choose.

It's not unreasonable to want to know the interest rate before I take a loan out.