Why are student loan interest rates tied to inflation, not central bank interest rates?

The Politicus
May 24, 2022 09:25 AM 0 Answers
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In the UK, student loan interest rates, once studies are finished, are set as Retail Price Index (RPI) plus up to 3%. Every other variable rate of borrowing that I am aware of is tied to central bank interest rates, for example mortgages.

Why was this decision made?

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