LONDON, Aug. 10 -- The government of the United Kingdom issued the following news:
Income Contingent Repayment Student Loans
Undergraduate loans
Income Contingent Student Loans for Plan 1 (1998-2012) undergraduate loans
The applicable Retail Price Index (RPI rate) is4.1% for the period 1 September 2026to 31 August 2027. The interest rate for Plan 1 income-contingent repayment student loans is RPI (4.1%) or the Bank Base Rate+ 1% (currently4.75%), whichever is lower.
The maximum interest rate on Plan 1 Income Contingent Repayment Loans during the period 1 September 2026until 31 August 2027will be4.1%, the applicable rate of RPI for the period.
Subject to any decrease in the Bank base rate from 1 September, the interest rate will be set at RPI4.1%.
Pleasemonitorthis website regularly as the rates may change during the academic year.
The repayment threshold for Plan 1 loans will rise to £28,005from 6 April 2027to 5 April 2028.
Income Contingent Student Loans for Plan 2 (2012-2023) undergraduate loans
The applicable RPI rate is4.1% for the period 1 September 2026to 31 August 2027. Interest rates for Plan 2 income contingent student loansvary between RPI (4.1%) and RPI +3% (7.1%) depending on your circumstances.However,as announcedon 7 April 2026, the maximuminterest rateapplied toplan 2 loans will be capped at 6% between 1September 2026 to 31 August 2027.
Your circumstances
Interest rate
Whilst studying and until the April after leaving the course
RPI + 3% (7.1%), witha 6% capappliedbetween 1 September 2026 to 31 August 2027
Post-study
Variable interest, dependent upon income. RPI (4.1%), rising on a sliding scale up to RPI + 3% (7.1%),with a 6% capappliedbetween 1 September 2026 to 31 August 2027
Interest rates are subject to any caps to reflect the Prevailing Market Rate.
Income Contingent Student Loans for Plan 5 (from 2023 academic year) undergraduate loans
The applicable RPI rate is4.1% for the period 1 September 2026to 31 August 2027. The interest rate for Plan 5 is RPI(4.1%).
This rate is subject to any caps to reflect the Prevailing Market Rate.
Income Contingent Student Loans for Plan 3 postgraduate loans
The applicable RPI rate is 4.1% for the period 1 September 2026 to 31 August 2027. The interest rate for Plan 3 is RPI + 3%(7.1%).However,as announced on 7 April 2026, the maximum interest rateapplied to plan 3 loans will be capped at 6% between 1September 2026 to 31 August 2027.
This rate is subject to any caps to reflect the Prevailing Market Rate.
Mortgage Style Loans
From 1 September 2026until 31 August 2027, the interest rate for mortgage style loans will be RPI, that is,4.1%.
The deferment threshold for mortgage style loans to apply from 1 September 2026until 31 August 2027will be£44,311.
Any queries from borrowers who have mortgage style loans should be addressed to their loan administrator.
Disclaimer: Curated by HT Syndication.
