The Department for Education (DfE) today (15 August 2017) confirmed the annual updates to the Interest Rates and Thresholds of Income Contingent Student Loans and Mortgage Style Student Loans, as set out in the relevant regulations and terms & conditions of the loans.
15 August 2017
Income Contingent Student Loans
Undergraduate loans
Income Contingent Student Loans for pre-2012 (Plan 1) loans
From 1 September 2017 until 31 August 2018, the maximum interest rate set for the existing Income Contingent Repayment Loans will be 3.1%. However, the low interest cap will be triggered, and therefore the rate to be charged from 1 September 2017 will be 1.25%.
Please monitor this website regularly as the rates may change during the academic year.
From 6 April 2018, the repayment threshold will rise to £18,330.
Income Contingent Student Loans for post-2012 (Plan 2) loans
From 1 September 2017 until 31 August 2018, 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% (6.1%) |
|
If you come into repayment from April 2018 |
Variable interest, dependent upon income
RPI (3.1%), where income is £21,000 or less, rising on a sliding scale up to RPI + 3% (6.1%), where income is £41,000 or more |
|
If you lose touch with SLC or do not send them the information they require |
RPI + 3% (6.1%), irrespective of income, until SLC have the information they require |
The repayment threshold for post-2012 (plan 2) loans continues to be £21,000.
If you do not know your repayment plan type, you can find out by using our tool.
Postgraduate Loans
From 1 September 2017 until 31 August 2018, the interest rate for borrowers in England taking out a Postgraduate Loan for a Master’s degree will be 6.1% (RPI + 3%)
The repayment threshold for Postgraduate loans continues to be £21,000.
Mortgage Style Loans
From 1 September 2017 until 31 August 2018, the interest rate for mortgage style loans will be 3.1%
The deferment threshold for mortgage style loans will be £29,219.
Any queries from borrowers who have mortgage style loans should be addressed to their loan administrator.