Former students who took out loans before that year are being forced to pay more than double the existing Bank Rate of 1.5 per cent.

The rise will add to growing pressures on young professionals who are already struggling to find decent jobs because of the global recession.

Even students going to university after 1998 - when key changes to the student loans scheme were made - are being forced to pay more than the Bank of England's record low interest rate announced earlier this month.

Last night, the Conservatives said students were being put under undue financial strain.

Loans have been offered to students on the basis that they are in line with inflation - making them effectively interest free.

The Student Loans Company uses the Retail Price Index (RPI) to calculate repayments.

Students taking "mortgage style loans" before 1998 are subjected to interest rates fixed for 12 months every March - currently 3.8 per cent.

Source: The Telegraph Online
For the full article please visit http://www.telegraph.co.uk/education/universityeducation/4347632/Graduates-who-took-student-loans-before-1998-miss-out-on-interest-rate-cut.html