Announcement of the interest rates and the repayment threshold for student loans

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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

Bachelor 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.

Reconstruction Loans

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.

Mortgage loan

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.

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