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

From 1 September 2013, until further notice, the interest rate set for the existing Income Contingent Repayment Loans will be 1.5%

From 1 September 2013 until 31 August 2014, the interest rate for the Plan 1 Income Contingent Repayment Loans will be the lower of the Retail Prices Index in March 2013, or 1% above the highest base rate of a nominated group of banks. As the RPI for March 2013 was 3.3%, the maximum rate of interest you will be charged between 1 September 2013 and 31 August 2014 is 3.3%. However, due to the low interest rate cap, the rate from 1 September 2013 will 1.5% until further notice, but that rate may vary if the bank base rate is increased or decreased.

New System Income Contingent Repayment Loans 2012 (For customers in England and Wales)

From 1 September 2013 until 31 August 2014, 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% (6.3% for 2013/14)
If you finish or leave your course before April 2016* RPI, plus 3% (6.3% for 2013/14) 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

Mortgage-Style Loans (loans taken out before 1998)

From 1 September 2013 to 31 August 2014, the new interest rate for 'Mortgage Style' loans will be 3.3% as interest is linked solely to RPI. From 1 September 2013, the deferment threshold for mortgage style loans will be £28,775. If you have a gross income of £28,775 per year or less, you may be eligible to apply for deferment.

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