Changes to Interest Rates and Thresholds
14 August 2015
14 August 2015
BIS today (14th August) announced changes to the Interest Rates and Thresholds of Income Contingent Student Loans and Mortgage Style Student Loans.
Income Contingent Student Loans for pre 2012 loans
From 1 September 2015, until further notice, the interest rate set for the existing Income Contingent Repayment Loans will be 0.9%.
Income Contingent Student Loans for post 2012 loans
From 1 September 2015 until 31 August 2016, one or more interest rates may apply to you:
| Your circumstances | Interest rate |
|---|---|
| Whilst studying and until the April after leaving the course | RPI, plus 3% (3.9% for 2015/16) |
| If you were on a short course or finished your course early and should have come into repayment before April 2016* | RPI, plus 3% (3.9% for 2015/16) until the April after you leave your course, then RPI (0.9%) only until April 2016 |
| If you come into repayment from April 2016 | Variable rate dependent upon income. RPI (0.9%) where income is £21,000 or less, rising on a sliding scale up to RPI+3% (3.9%) where income is £41,000 or more |
| If you lose touch with SLC or do not send them the information they require | RPI + 3%,(3.9%) irrespective of income, until SLC have the information they require |
* The earliest date for repayment for all post-2012 (Plan 2) borrowers will be April 2016.
Mortgage Style Student Loans
The interest rates and deferment threshold for Mortgage Style Loans, from 1 September 2015 to 31 August 2016:
Those with mortgage style student loans queries should contact their loan administrator.