Written statement by , Parliamentary Under
Secretary of State for the School System and Student
Finance
I am announcing today an additional temporary cap to the
Post-2012 income contingent repayment undergraduate and
postgraduate loan interest rates effective as of 1 March 2023.
The Government announced on 13 June 2022 that the student loan
interest rate would be set at a maximum of 7.3% between 1
September 2022 and 31 August 2023, in line with the forecast
prevailing market rates. The Government confirmed that should the
actual prevailing market rate turn out to be lower than forecast,
a further cap would be implemented to reduce student loan
interest rates accordingly.
From 1 September 2022 to 30 November 2022, reflecting a lower
than forecast Prevailing Market Rate, the maximum interest rate
was 6.3% for all post-2012 (Plan 2) and postgraduate (Plan 3)
loans. Following an increase in the Prevailing Market Rate, the
maximum interest rate increased to 6.5% between 1 December 2022
and 28 February 2023.
I am now announcing a further cap: from 1 March 2023 to 31 May
2023 the maximum interest rate will be 6.9% for all post-2012
(Plan 2) and postgraduate (Plan 3) loans, reflecting the most
recent Prevailing Market Rate. This is a reduction compared to
the 7.3% maximum rate announced in June.
From 1 June 2023 to 31 August 2023, the maximum interest rate
will be 7.3%. Subject to the Prevailing Market Rate, the
government may announce further caps to apply during this period.
