Student Loan Interest Rates Have Fallen To 2.5%

Jan

Student Loan Interest Rates Have Fallen To 2.5%

The interest rate payable on student loans has been reduced from 3% to 2.5% following a decrease in the Bank of England’s base rate.

According to the Student Loans Company website:

The interest rate payable on income based student loans has been reduced following the latest change to the Bank of England rate to 1.5% on Thursday 8th January. The new rate for income based student loans is 2.5% from 9th January until further notice. Interest is applied to loans from the date they are paid to you until they are repaid in full.

The previous interest rate was 3% which came into effect from the 5th of December. Even if the base rate goes up (which is highly unlikely) the maximum interest rate they can charge us this year won’t exceed the chosen rate of 3.8%.

Link: Student Loans Company