While you are studying, interest is 5.6%.
This is made up of the Retail Price Index (RPI) plus 3%. RPI is currently set at 2.6%.
This rate applies until the 5 April after you finish or leave your course, or for the first four years of your course if you’re studying part-time, unless the RPI changes.
After that, your interest rate depends on your income in the current tax year. Please see the table below:
|Your annual income||Interest rate|
|£26,575 or less||RPI (currently 2.6%)|
|£26,576 to £47,835||RPI (currently 2.6%), plus up to 3%|
|Over £47,835||RPI (currently 2.6%), plus 3%|
Interest on Plan 1
You currently pay interest of 1.1% on Plan 1. Find out how the interest is calculated and interest rates for previous years on the Government website.