Letter to the Editor
Indexation not the main game
Dear John. Thank you for your kind comments.
Indexation has been applied to student loan debts since 1989. Recent high inflation has drawn attention to indexation, both how it is calculated and when it is applied.
High indexation has certainly an issue – I hope I didn’t give the impression that I was dismissing it entirely – but in my view it is not the main game, which is the size of the debts to which indexation is applied.
Indexation is much less of an issue in more normal inflationary environments; you’re not the first person to wonder, in the light of high indexation, if it’s a new requirement for the schemes.
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