Originally Posted by Sega
100% sure, they are subsidised by the Government. Although it may be different now to when you took out your loan so you would have to check the terms and conditions.
The loans today are given by the SLC (Student Loans Company), I don't know if it was called SSL once?
5000/100 = 50 = 1% of £5000
120/50 = 2.4%
£120 = 2.4% of 5000
2.4% as an average every year is about the level of inflation. (although recently they have been crazy!)
You would be better off putting the £5000 in a high interest savings account and paying the loan off gradually. That way you will make some money out of it. Although it could be nice to get it out of the way? Peece of mind