Interest Rates

Repayment of student loans is a shared responsibility between SLC and HM Revenue & Customs (HMRC).

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Undergraduate loans

The amount of interest on your loan will vary according to your Repayment Plan Type.

Income Contingent Repayment Loans - Plan 1

If you took out your student loans in England and Wales (before 1 September 2012) or in Scotland and Northern Ireland, then the interest rate from 1 September 2016 until further notice is 1.25%.

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

If you took out your student loans in England and Wales (on or after 1 September 2012), then the interest rate from 1 September 2016 will depend on your circumstances:

Your Circumstances Interest Rate
Whilst studying and until the April after leaving the course RPI, plus 3% (4.6% for 2016/17)
From 6 April after leaving the course until the loan is repaid in full Variable rate 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 don't respond to SLC's requests for information or evidence RPI plus 3% will be applied to your loan, whatever your income, until SLC have all the information they need

Find out your undergraduate repayment plan type

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

Postgraduate Loans

For customers in England taking out a Postgraduate Loan for a Master’s degree (on or after 1 August 2016), the interest rate which applies to your balance is 4.6%.

This is based on the rule: Retail Price Index (RPI) +3%.

The RPI rate is 1.6% until 31st August 2017. This will change in September based on the RPI from March of that year.

Repayment of Postgraduate Loans will begin in April 2019.