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UniAid: Credit crunch not a threat to student loans
Student loans are unlikely to be affected by pressures on the international economy, UniAid - a charity helping students cope with financial barriers - has said.
Alistair Lomax, chief executive of the charity, explained that student finance support arrangements are "pretty insulated" from the rest of the economy and therefore unlikely to be hit by the credit crunch.
On the contrary, he added, repayments will probably be eased as a result of a lower base rate.
"There's going to be a positive impact to students [from the credit crunch], because the interest rates are lowered in order to keep the economy buoyant," Mr Lomax noted.
He went on to predict that recovery factors being put in place following the credit crunch will impact on the finances of students, as borrowing is likely to become cheaper.
The base rate of interest is currently at 5.25 per cent, with the Bank of England's monetary policy committee widely expected to reduce it when it meets this week.