Announcement of the interest rates and the repayment threshold for student loans
The Department of Education (DfE) today (August 11, 2020) confirmed the annual updates to the interest rates and thresholds for income-related student loans and mortgage student loans as set out in the relevant loan terms and conditions.
Income-related student loans
Income-related student loans for pre-2012 loans (Plan 1)
From September 1, 2020 to August 31, 2021 the maximum the adjustable interest rate for the existing income-related repayment loans is 2.6%. However, the low upper interest rate limit is triggered, so that the interest rate to be calculated from September 1, 2020 is 1.1%.
Please check this website regularly as prices may change during the academic year.
As of April 6, 2021, the repayment threshold for pre-2012 loans (Plan 1) will be raised to £ 19,895.
Income-related student loans for loans after 2012 (Plan 2)
From September 1, 2020 to August 31, 2021, one or more interest rates may apply to you:
|Your circumstances||interest rate|
|During the course and until April after leaving the course||RPI + 3% (5.6%)|
|With repayment from April 2021||Variable interest rate based on income RPI (2.6%) if income is £ 27,295 or less, increasing to RPI + 3% (5.6%) if income is £ 49,130 or more|
|If you lose touch with SLC or fail to send them the information they need||RPI + 3% (5.6%) regardless of income until SLC has the information it needs|
The repayment threshold for loans after 2012 (Plan 2) will be increased to £ 27,295 from April 6, 2021 to April 5, 2022.
From September 1, 2020 to August 31, 2021, the rate for borrowers in England taking out a postgraduate Masters or PhD loan is 5.6% (RPI + 3%).
The postgraduate loan repayment threshold remains at £ 21,000.
From September 1, 2020 to August 31, 2021, the mortgage loan interest rate is 2.6%.
The mortgage loan deferral threshold is £ 30,646.
All questions from borrowers who have mortgage loans should be directed to their loan administrator.