Student loan interest rates

As you’d image interest rates are not fixed for very long so you can’t expect to pay the same amount that a friend or family member paid some years ago. Thankfully the Student Loan Company publish the Student loan interest rates each year so we can bring you a breakdown of the charges for 2014 / 2015.

Interest rates

There are two types of Income Contingent Repayment Loans so there are different interest rates depending on which one you have taken out. The Plan 1 loan is the loan given to those taken out before 2012. The loan’s interest repayment rate is set at 1.5%. There’s a complicated calculation that takes place in order to work out the interest rate using the Retail Prices Index and the base rate of a group of banks so this amount can fluctuate. But from September 2014 until further notice the rate is set at 1.5%.

Plan 2

Students who find themselves on Plan 2 will have to note the following about their loan repayment interest rate as there are different contingencies that determine the rate. Between 1 September 2014 and 31 August 2015 the following applies.

While you’re studying your interest rate is RPI, plus 3% (5.5% for 2014/15). This rate is also applicable from the end of your studies until the first April after you’ve left the course. If you finish your course or if you leave before April 2016, the following rate applies. RPI, plus 3% (5.5% for 2014/15) until the April after you leave the course and then RPI only after that until April 2016.

More information

You can get information on student loan repayments by clicking here, or you could turn to the Student Loans Company official site - slc.co.uk for more information on the subject.

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