SLC media statement

SLC statement in response to the letter recently published online to correct inaccurate information.

26 May 2016

 “It is not the case that this individual’s interest rate has increased or that their loan has been sold. The variable interest rates that would apply to his student loan are unchanged from those in force at the time of his application in 2012.

“All students that take out a loan must sign a declaration confirming that they have read the terms and conditions of the loan before it will be paid. These terms and conditions clearly set out the interest rates that the student will be charged, when they will start repaying and when interest starts accruing.”

Background Note
1. The maximum interest for students who started their courses on or after September 2012 in England and Wales is RPI (currently 0.9%) + 3%.  That means the current maximum rate is 3.9%.  More information in the table below.

Students will only repay their loans at a rate of 9% of their earnings above £21k. Loans are written off after 30 years. 

2. Interest rates are set by the UK Government in England and by the devolved administrations in Scotland, Wales and Northern Ireland - not by SLC. 
Students in England and Wales whose courses started on or after 1 September 2012 are charged variable rate interest depending on their circumstances:

While studying

Retail Price Index (RPI) + 3% until the April after graduation

Graduates earning under £21,000:

Retail Price Index (RPI)

Graduates earning £21,000 – £41,000:

Retail Price Index (RPI) + up to 3%, depending on income

Graduates earning £41,000+

Retail Price Index (RPI) plus 3%