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Student Loan Rate 'absurb' ?

Student Loan Rate 'absurb' ?

The inflation measure used to set interest rates on student loans is "absurd", says a report from MPs.

The government uses RPI - the Retail Prices Index - which the Treasury Select Committee says is "flawed" and should be "abandoned".

The rise in that measure will push interest rates on student loans for tuition fees up to 6.3% in the autumn.

The Department for Education defended the continuing use of RPI, saying it provided "consistency over time".

Nicky Morgan, who chairs the committee, said the use of RPI for loan repayments, which "normally gives a higher rate of inflation", appears "grossly unfair".

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