The clock tower, also known as "Big Ben", located at the north end of the Palace of Westminster in London.
Student borrowers in the United Kingdom will be facing higher student loan payments as a result of a 33pc increase in the interest rates on their loans with experts saying the hike was worse than expected.
The increase is due to a rise in inflation and will affect people who started college after 2012. This group was the first to pay fees of up to £9,000 a year, and many are expected to never be able to pay off their loans which expire after 30 years according to Telegraph, a U.K. news source.
The new interest rate could result in some students paying up to 6.1pc on their loans. The interest accrues on these loans while students are in school earning their degrees, and grads begin paying off loans once they’re making at least £21,000 per year.
After graduation, the interest rate falls between RPI and RPI plus 3pc which is determined by income. That means that those making £21,000 or less each year will get hit with an increase of 3.1pc while people earning £41,000 or more will deal with a hike of 6.1pc.
Like their American counterparts, UK students are suffering under the weight of massive student loan debt. Student loan debt increased £12.6bn, or 17 percent, to £86.2bn in the past year, and about 70 percent of students who graduated last year are expected to never finish repaying their loans.
This recent increase means someone with £40,000 in loans needs to make a little over £48,000 annually to pay off the principal of the loan rather than just the interest, explaining the skepticism of some analysts.
As one expert noted, the rate increase is simply adding to the massive amounts of student loan debt that the government will never get back.
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