Letter: Students need to be away from home

Dominic Mooney
Thursday 06 April 1995 23:02 BST
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From Mr Dominic Mooney

Sir: It was interesting to read that "a zero rate of interest is charged" for the present student loans system ("Student loans system could be privatised", 3 April). Unfortunately, this only serves to propagate one of the myths about student life. The Student Loans Company does not "charge a zero rate of interest". More correctly, they charge an "effectively zero rate of interest". The difference is that interest is charged at the same rate as inflation, so that the debt does not decrease during the period of the student's studies.

Yours faithfully,

S. D. MOONEY

Highfield, Hampshire

3 April

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