Advisers with clients in their early 20s should watch out for the end of the University term as some...
Advisers with clients in their early 20s should watch out for the end of the University term as some 200,000 former tertiary students will soon face huge increases in the interest rates applied to their student loans, warns Intelligent Finance.
The "big four" lenders, HSBC, Barclays, Lloyds and NatWest all offer two- or three-year interest-free overdrafts on sums up to between £1,500 to £2,000 following graduation.
However, once the time period is finished, those in debt can find themselves going from an effective interest rate of 0% to one of more than 17% - adding up to £345 in annual interest payments, equivalent to a week's salary for many.
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