Find out how interest is calculated and applied if you have a Plan 2 student loan, as well as previous interest rates.
When interest is applied
You’re charged interest from the day we make your first payment to you or to your university or college until your loan has been repaid in full or cancelled. Interest is added to your balance each month.
The interest rate charged is the Retail Price Index plus up to 3%, depending on your circumstances and income.
What is the Retail Price Index?
It’s a measure of inflation, which measures changes to the cost of living in the UK.
When the interest rate changes
The interest rate is usually set on 1 September each year, based on the Retail Price Index of the previous March.
Previous interest rates
The rates in the table apply to Plan 2 loans only. The amounts shown are the maximum for each period. Depending on your income, the interest rate you were charged might have been lower than the maximum shown.
|1 September 2019 to 31 August 2020||5.4%|
|1 September 2018 to 31 August 2019||6.3%|
|1 September 2017 to 31 August 2018||6.1%|
|1 September 2016 to 31 August 2017||4.6%|
|1 September 2015 to 31 August 2016||3.9%|
|1 September 2014 to 31 August 2015||5.5%|
|1 September 2013 to 31 August 2014||6.3%|
|1 September 2012 to 31 August 2013||6.6%|