Getting To Grips With The Student Loans Repayment Changes

21st March 2022

It can be complex area to look since different terms have applied to the loans going back over the years.

England
Update on pre-2012 income contingent (ICR) student loans interest rate.

The Department for Education (DfE) has confirmed that the current interest rate for pre-2012 income contingent (ICR) student loans will remain at 1.50%.vernment has jut announced for England -
The Department for Education (DfE) has confirmed that the current interest rate for pre-2012 income contingent (ICR) student loans will remain at 1.50%.

On 17 March, the Bank of England base interest changed to 0.75%. This means that the Bank base rate + 1% is now 1.75%.

Pre-2012 ICR student loans have an interest rate of either RPI (from the March prior to the September when the new interest rates are implemented) or the Bank Base Rate + 1%, whichever is the lower (this is known as the "low interest cap"). As RPI is currently lower than the Bank base rate +1%, pre 2012 ICR student loans now have an interest rate of RPI.

Scotland
Much Better News In Scotland
Money Saving Expert Martin Lewis has set out a straightforward explanation for Scottish Student Loans regarding the changes.
To read it go HERE