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The president of the National Union of Students is calling for changes to the rate of interest on student loans.

Gemma Tumelty has written to Universities Secretary John Denham to say she is concerned that the current formula, which changes annually in line with the retail prices index, makes graduates vulnerable to excessive increases. In September, the rate doubled from 2.4 per cent to 4.8 per cent.

More than 50,000 NUS members have objected to the hike on social networking site Facebook and 37 MPs are backing an early day motion calling for the rate to be capped at 1 per cent.