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Controversy is brewing about Government plans to release information about student loan debt to credit rating agencies at the same time as the interest rate on such loans has doubled.

While students are told that interest rates are kept in line with inflation when taking out loans, many are unaware that the rate is set according to the RPI inflation measure rather than the newer, and lower, official CPI measure.

This has led to the rate on loans doubling for the next year to 4.8%, from 2.4% the previous year, due to a spike in inflation.

Potential first-time buyers already struggling to cope with high house prices and mortgage lenders tightening their criteria have been warned that missed payments being recorded on their credit files could cause problems. While missed payments on student loans will show up as a black mark, positive details on those who have made all their payments on time will not be recorded.

The Government has not yet confirmed when it will begin releasing information about student loan payments to credit agencies, but the information will begin to show up this year.

Protests have been made against the change, with a group set up on networking site Facebook attracting more than 26,000 members. Most complaints have called for student loans to track the official CPI measure rather than RPI.

Higher education minister Bill Rammell was criticised after defending the loan interest stating that repayments would not change as they are collected as a percentage of salary above £15,000. Critics pointed out that this was encouraging poor personal financial management as the repayments may not change but the interest rate charged on the outstanding balance had doubled.

While the Government claims that it is simply trying to create a level playing field for student loans, student groups point out that using the higher calculation of inflation is simply a bare faced money grabbing scam.

The funding of higher education students is an interesting case in the personal loans market. The move from grants to loans was meant to shift the system away from state handouts and towards a more market orientated approach. These latest moves, however, both fail to make the system more equitable and will put students off from higher education. At a time when the Government wants to increase the percentage of students continuing to higher education to 50% this is at best muddled policy making and at worse counter-productive.

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The past few days have made it abundantly clear that we are entering a period of intense economic turbulence. They have shown equally clearly, however, that for the moment survival is a matter of taking a few simple steps.

It sounds like pathetically obvious advice but it is nevertheless true. Keep your job. Be proactive, and ask your boss or do your own research. If you know what the challenges are, you won’t be seen to be heading off in the wrong direction if the company decides it needs to change. Now is also the time to be positive and enthusiastic.

Unless you are close to retirement, there is no need to worry about investments, advisers say. Over the long term, the stock market will rise again by enough to cover this week’s losses. However anyone hoping to cash in their shares soon may be better off taking their money out now and switching to safer cash or fixed interest assets in case things get worse.

Anyone struggling with their monthly mortgage bills should consider switching from capital repayments to repaying just the interest on the loan. A lender will charge £50 for the switch, but it could shave hundreds off monthly outgoings. But this should be a short-term measure as failing to resume repaying the capital means your risk not being able to pay off the full loan at the end of term.

Unfortunately, those about to draw their pension will be the hardest hit by this downturn. Most pension funds invest in the stock market, which leaves them especially vulnerable. The insurance analyst Aon Consulting said that the pension funds deficit rose by £15 billion on Monday. Anyone in, or approaching, retirement is advised delay drawing on their pension fund if they can

The good old solution to higher bills is simple budgeting. The debt charity Credit Action suggests drawing up a list of everything you spend to see if money is going on anything unnecessary. Say goodbye to takeaway coffees, and make your lunch at home instead of buying it at work. Be stricter with yourself and check your direct debits in case you are paying for anything you have forgotten about, such as magazine subscriptions or regular charity donations. If you have debt on credit cards or personal loans, switch to deals with the cheapest interest rates

Property prices are already wobbling, with the least pessimistic commentators predicting stagnant prices for the rest of 2008 and even into 2009. The worst fate, as nervous buyers steer clear in such a downturn, is to become a forced seller. To ward off a forced sale, all homeowners should, take care with debt. First-time buyers, on the other hand, may now be in their best position for years.

It may be stating the obvious, it may be preaching to the converted, but these tips could prove vital to staying afloat in the troubling times ahead so ignore them at your peril.