The Department for Education (DfE) today (08 August 2019)
confirmed the annual updates to the Interest Rates and Thresholds
of Income Contingent Student Loans and Mortgage Style Student
Loans, as set out in the relevant regulations and terms and
conditions of the loans.
Income Contingent Student Loans
Undergraduate loans
Income Contingent Student Loans for pre-2012 (Plan 1)
loans
From 1 September 2019 until 31 August 2020,
the maximum interest rate that can be
set for the existing Income Contingent Repayment Loans will be
2.4%. However, the low interest cap will be triggered, and
therefore the rate to be charged from 1 September 2019 will be
1.75%.
Please monitor this website regularly as the rates may
change during the academic year.
From 6 April 2020, the repayment threshold for pre-2012 (Plan 1)
loans will rise to £19,390.
Income Contingent Student Loans for post-2012 (Plan 2) loans
From 1 September 2019 until 31 August 2020, one or more interest
rates may apply to you:
|
Your circumstances
|
Interest rate
|
|
Whilst studying and until the April after leaving the
course
|
RPI + 3% (5.4%)
|
|
If you come into repayment from April 2020
|
Variable interest, dependent upon income RPI (2.4%), where
income is £26,575 or less, rising on a sliding scale up to
RPI + 3% (5.4%), where income is £47,835 or more
|
|
If you lose touch with SLC or do not send them the
information they require
|
RPI + 3% (5.4%), irrespective of income, until SLC have the
information they require
|
The repayment threshold for post-2012 (plan 2) loans will rise to
£26,575 from 6 April 2020 to 5 April 2021.
Postgraduate Loans
From 1 September 2019 until 31 August 2020, the interest rate for
borrowers in England taking out a Postgraduate Masters or a
Doctoral loan will be 5.4% (RPI + 3%). The repayment threshold
for Postgraduate loans continues to be £21,000.
Mortgage Style Loans
From 1 September 2019 until 31 August 2020, the interest rate for
mortgage style loans will be 2.4%. The deferment threshold for
mortgage style loans will be £32,347. Any queries from borrowers
who have mortgage style loans should be addressed to their loan
administrator.
