Loan Funds set up fixed interest rate period of three years with just over half a percentage point from January 1st.
Real interest rates in the Loan Fund from 1st of January will be 2.07 percent for three years, an increase of 0.52 percentage points.
For five-year bond, you will receive 2,315 percent after the New Year and it will be 0.44 percentage points more expensive than today. For ten years, interest rate will be 2.882 percent, which is 0.41 percentage points higher.
– Fixed rates apply from January 1, assuming parliament approves the government’s proposal to reduce the deduction of interest in the Loan Fund, says Anne-Berit Herstad, Communications Director of the Loan Fund.
Floating rate from January 1, 2109 percent, 0.35 percent higher than the current rate.
The interest in the Loan Fund is market-driven and based on calculations from the FSA. Interest rates are based on an average of the five best deals on mortgages in the market.
This average is called base rate. From the base rate 0.5 percentage points will be deducted. In the national budget proposed to reduce the deduction under the Loan Fund interest rates from 0.5 to 0.15 percentage points, thus loans around 0.35 per cent more expensive.
509,800 of the Loan Fund customers have variable interest on their student loan, while 86,200 have fixed interest rates.
Source: NTB scanpix / Norway Today