In the morning on Thursday, it will be decided what the interest rate will be next year on the investment savings account (ISK), but also on the CSN loan.
Since the government bond rate has fallen from 3 percent last autumn to just over 2 percent today, savers can look forward to lower taxation on their ISK accounts.
For those with a CSN loan, the reality looks different. The interest rate is calculated based on the three most recent years' borrowing costs and not just one single year.
"Security feature"
This means that the actual loan costs will likely increase next year.
This was introduced in the 1990s as a protection for borrowers so that the interest rate does not "get out of hand" considering that costs in society are rising, roughly like during the period we have just left behind, says Patric Peippo, investigator at CSN's legal department.
At its core, it is a security feature, but the downside is that the decrease becomes a little delayed.
Last year, the CSN interest rate was 1.23 percent. Next year's interest rate is not yet fixed, but according to CSN's prognosis, it will land at around 1.97 percent.
It is, as said, a prognosis. It can change, but when it is so close to the decision, it is relatively close to the truth, says Peippo.
Complicated calculation
However, how much more it will cost per study loan is more complicated to calculate than, for example, the cost of a housing loan. More factors than just the interest rate affect, including how long the loan repayment period is before it is written off.
A person who, for example, has 180,000 kronor in study loans and 15 years left before the loan is written off pays 922 kronor per month this year.
If you now take into account this interest rate increase, it will be 997 kronor per month, that is, 75 kronor extra compared to this year, says Patric Peippo.
The study loan should start being repaid at the earliest 6 months after you last had student aid.
How much you should pay each year is determined by four different factors:
The size of the loan amount.
How high the interest rate is – under 2024, it is 1.23 percent.
How long you will pay off the loan.
A markup of two percent per year at an unchanged interest rate. The markup means that the annual amount will increase slightly each year, if the borrower follows their payment plan and the interest rate remains unchanged.
You can pay back your loan at the latest in 25 years. The loan should be paid off the year you turn 64 years old, alternatively 60 years old, depending on when the loan was disbursed.
Source: CSN
