Explained in plain English
What's 'real' interest?
The interest rate on student loans is often linked to inflation, which is the rate at which prices rise. Sometimes, the interest rate can be higher than inflation, meaning the 'real' value of your debt increases. The cap helps ensure the interest doesn't become excessively high compared to the cost of living.
Stories that explain this
What the 6% student loan interest cap means for youThis explainer came from a news story
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