Change how RPI is measured
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Student loans are currently provided by the Student Loans Company. The interest rate on these loans is calculated at 3% + RPI (Retail Price Index), making all students who take out loans involuntary users of the Retail Price Indexes. It is therefore shocking to discover that the Office for National Statistics, who measure RPI, believe that formula underpinning RPI "could have negatively affected people and organisations already using it in contracts in its current form." This quote comes from a letter to the Financial Times from Jonathon Athow, the deputy National Statistician on 21st July 2017.
The Office for National Statistics is therefore well aware that fixing the way that RPI is measured in the UK would lower the burden on all students with student loans, as well as the national debt. The ONS themselves have stated that RPI "is not a good measure of inflation," and "its use should be discouraged." Why are the ONS favouring lenders over borrowers? And why, as future taxpayers, should students pay more to service the national debt than necessary because the measure of inflation is too high? More information on the Retail Price Indexes can be found at:
The way RPI is measured in the UK needs to fixed.
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