What do Bank of England interest rates and regulator demands mean for universities?
The Bank of England has delivered its biggest interest rate rise in more than 30 years and the UK faces the longest recession on record. Happy Friday. What does it all mean for higher education—a sector that relies, to a large extent, on debt?
As far as student loans are concerned, it should not mean much. After fears at one stage last year that loan repayments—calculated at the bank base rate plus up to three per cent—could push 12 per cent, the government stepped in. It set the maximum interest rate for all post-2012 loans at 6.3 per cent until 30 November, and then at 7.3 per cent from 1 December until 31 August 2023.
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