Market Loop - Student loan interest rate capped

View this email in your browser
13th June 2022

Bite-sized business news from the UK and beyond
Good morning What better way to start the week than with news that a heatwave is on the way. A plume of air coming up though France from North Africa and into the UK means that London and the southeast could see temperatures of 35C by the end of the week with highs elsewhere widely expected in the mid-20Cs.
Today's stories
  • Student loan interest rate capped
  • Russian McDonald’s reopens under new ownership
Student loan interest rate capped

What happened?
Over the weekend the government announced that it will cap student loan interest rates for graduate borrowers to protect them from a rise in inflation. The change will affect current students in England and Wales, and graduates with outstanding loans who started university in/after 2012.

Interest rates on student loans are reset annually and determined by adding 3% to the Retail Price Index (RPI) measure of inflation. However with RPI at 9% - the highest in 30 years – students would be facing 12% borrowing rates. 

So the government has capped the rate at 7.3% effective from this September. 

But it won’t affect monthly repayments, which are based on income. Instead it means people who have taken out loans will owe less in the long term than they would have done if interest rates had not been capped below 12%.

For example, someone with an outstanding loan of £45,000 would reduce their accumulating interest on the total value of the loan by around £180 per month, compared to 12% interest rates. The government says that the move will protect graduates from the rising cost of living and global economic pressures.

But in practice it’s likely to only benefit the highest earners. Repayments are calculated by income so graduates earning less than £27,295 don't pay anything back. For those who earn above that threshold, the amount repaid doesn't vary because of a higher interest rate, rather it’s a fixed 9% of what you earn above the threshold.

Unless you're a high earner and will pay back most or all of your loan before it's cancelled (which happens 30 years after you graduate), the amount of interest added doesn't make a difference to the amount you'll repay.
Other stories to keep you in the loop
Russian McDonald’s reopens under new ownership

What happened? 
Yesterday 15 McDonald's restaurants in Russia reopened under new Russian ownership and a new name: Vkusno & tochka, which translates as "Tasty and that's it".

How did we get here: McDonald’s was one of nearly 1,000 Western businesses that said they’ll reduce their operations in Russia or leave the country entirely as a result of the war in Ukraine. According to the Wall Street Journal, so far these corporate exits have cost the Russian economy $59bn.

McDonald’s was one of the first international brands to open in Russia after the Soviet Union collapsed in the early 1990s. When the first McDonald's opened in Moscow an estimated 30,000 Russians queued up to try its products. 30 years on McDonald’s has sold its 847 restaurants to local licensee Alexander Govor, taking an accounting charge of $1.4bn in the process.

The new Russian owners have re-launched with a new logo – supposedly representing two French fries and a burger but also very close to an ‘M’. Some social media users have pointed out that it bears a striking resemblance to the flag of Bangladesh. 

The company plans to reopen 200 restaurants in Russia by the end of June and all 847 by the end of the summer.

Zooming out: The reopening of the locations will be a test of how well Russia's economy can function without global brands and become more self-sufficient in the face of tough Western sanctions.
Stat of the day

According to Forbes magazine, golfer Tiger Woods has become only the third athlete to reach a net worth of $1bn, joining basketball players LeBron James and Michael Jordan
Interesting links from around the web
Forward to Friend Forward to Friend
Not a subscriber? Join free
Sent this by a friend? Sign up here
How did you like today's email?
Get in touch with any feedback or even just to say hi

Copyright © 2022 Market Loop, All rights reserved.

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.

This email was sent to you
why did I get this?    unsubscribe from this list    update subscription preferences
Market Loop · 16 Great Chapel St · London, London W1F 8FL · United Kingdom

Email Marketing Powered by Mailchimp

Older messages

Boots receives £5bn takeover offer

Friday, June 10, 2022

.... and Greenwashing allegations hit big corporations View this email in your browser 10th June 2022 Bite-sized business news from the UK and beyond Good morning Yesterday the Hertfordshire town of St

Global think tanks paint grim view for world economy

Thursday, June 9, 2022

.... and British education startup becomes latest tech unicorn View this email in your browser 9th June 2022 Bite-sized business news from the UK and beyond Good morning The saying goes ask and you

Online car dealer slashes workforce amid recession fears

Wednesday, June 8, 2022

.... and Apple's next big thing View this email in your browser 8th June 2022 Bite-sized business news from the UK and beyond Good morning If you're making travel plans for this summer then

London Metal Exchange hammered with $450m lawsuit

Tuesday, June 7, 2022

.... and UK rental market facing unprecedented squeeze View this email in your browser 7th June 2022 Bite-sized business news from the UK and beyond Good morning 148. That's the number of votes

Investors in former City darling’s fund launch lawsuit

Monday, June 6, 2022

.... and Camden Market goes up for sale with £1.5bn price tag View this email in your browser 6th June 2022 Bite-sized business news from the UK and beyond Good morning Welcome back from the long

Royal Family spending reaches new record

Friday, July 1, 2022

.... and British Gen Z fintech app reaches $500m valuation View this email in your browser 1st July 2022 Bite-sized business news from the UK and beyond Good morning Can you believe it, we're

Potato milk, $700k/yr EDM courses, and how to write an ad!

Friday, July 1, 2022

Have you visited Trends this week? Trends Have you visited Trends this week? If you haven't, you're missing out on: A comprehensive guide to how one Trends member built an EDM music production

Cannabinoid Playbook: July 2022

Friday, July 1, 2022

Here are the MUST Knows from our 20+ page July Cannabinoid playbook. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

+90% from demo to paid (study)

Friday, July 1, 2022

Today's hack +90% from demo to paid (study) ran an A/B test. 2 days after signup, half of them were offered via email to get on a call to help them get started with using the product.

Wikipedia wants to rein in Big Tech freeloaders

Friday, July 1, 2022

Also in today's edition: Layoffs (still) abound; Sexual wellness bandwagon has a new entrant; Indian companies zero in on Russia; Are sports rights due for a crash? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

🔍 7 Steps To Grow Organically On TikTok

Thursday, June 30, 2022

Your content distribution playbook. View in browser Ayoooo, Marketeers! Happy almost Friday. Today's read is a playbook to grow on TikTok. And roughly a two-minute read. In Partnership with Yotpo

June 30 - Enjoy Technology files Ch. 11 | Ace Hardware shutters The Grommet

Thursday, June 30, 2022

Enjoy Technology files for bankruptcy with plans to sell itself; Ace Hardware shuts down The Grommet, lays off 44; Walmart to acquire AR optical tech firm Memomi; Bed Bath & Beyond CEO out as sales

💸 This site about Turkey is worth $130k - but could be worth $227k

Thursday, June 30, 2022

One of the best opps yet! Dont miss it... ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

[STARTING NOW] Our 12pm ET call is about to go LIVE. Jump on now…

Thursday, June 30, 2022

Revealing a unique system that'll allow you to sell YOUR OWN branded products Our 12pm ET call is about to start, and if you have not already taken your seat, we suggest you jump on right now. >

🚩 TRUST-able #09 - June 2022

Thursday, June 30, 2022

21 actionable recommendations for authors seeking higher reputation and credibility ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌