Interest Rates

Repayment of student loans is a shared responsibility between SLC and Her Majesty's Revenue & Customs (HMRC).

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Income Contingent Repayment Loans - plan 1

From 1 September 2014, until further notice, the interest rate set for the pre 2012 (plan 1) Income Contingent Repayment Loans will be 1.5%

From 1 September 2014 until 31 August 2015, the interest rate for the Plan 1 Income Contingent Repayment Loans will be the lower of the Retail Prices Index in March 2014, or 1% above the highest base rate of a nominated group of banks. As the RPI for March 2014 was 2.5%, the maximum rate of interest you will be charged between 1 September 2014 and 31 August 2015 is 2.5%. However, due to the low interest rate cap, the rate from 1 September 2014 will be 1.5% until further notice, but that rate may vary if the bank base rate is increased or decreased.

Income Contingent Repayment Loans from 2012 - plan 2 (for customers in England and Wales)

From 1 September 2014 until 31 August 2015, 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% (5.5% for 2014/15)
If you finish or leave your course before April 2016* RPI, plus 3% (5.5% for 2014/15) until the April after you leave your course, then RPI only until April 2016

 

* The earliest date for repayment for all post-2012 (plan 2) borrowers will be April 2016.

You can find more detailed information by visiting our repayment website..