Changes to Interest Rates and Thresholds

Income Contingent Student Loans

Undergraduate loans

Income Contingent Student Loans for pre-2012 (Plan 1) loans

From 1 September 2016 until 31 August 2017, the maximum interest rate set for the existing Income Contingent Repayment Loans will be 1.6%.  However, the low interest cap will be triggered, and therefore the rate to be charged from 1 September 2016 will be 1.25%. 

Please monitor this website regularly as the rates may change during the academic year.

From 6 April 2017, the repayment threshold will rise to £17,775.

Income Contingent Student Loans for post-2012 (Plan 2) loans

From 1 September 2016 until 31 August 2017, one or more interest rates may apply to you:

Your circumstances	Interest rate
Whilst studying and until the April after leaving the course	RPI + 3% (4.6%)
If you come into repayment from April 2017	Variable interest, dependent upon income   RPI (1.6%), where income is £21,000 or less, rising on a sliding scale up to RPI + 3% (4.6%), where income is £41,000 or more
If you lose touch with SLC or do not send them the information they require	RPI + 3% (4.6%), irrespective of income, until SLC have the information they require

The repayment threshold for post-2012 (plan 2) loans has been frozen until at least April 2021

If you do not know your repayment plan type, you can find out by using our tool to help you discover this here.

Postgraduate Loans

From 1 September 2016 until 31 August 2017, the interest rate for borrowers in England taking out a Postgraduate Loan for a Master’s degree will be 4.6% (RPI + 3%) 

The repayment threshold for Postgraduate loans has been frozen until at least April 2021

Mortgage Style Loans

From 1 September 2016 until 31 August 2017, the interest rate for mortgage style loans will be 1.6% 

The deferment threshold for mortgage style loans will be £29,126.

Any queries from borrowers who have mortgage style loans should be addressed to their loan administrator.