Income Contingent Repayment Student Loans
Undergraduate loans
Income Contingent Student Loans for Plan 1 (1998-2012) undergraduate loans
The interest rate on Plan 1 income-contingent repayment student loans is Retail Price Index (RPI) or the Bank Base Rate + 1%, whichever is lower.
The applicable rate of RPI is 4.3% for the period 1 September 2024 to 31 August 2025.
As this is lower than the Bank Base Rate +1%, subject to any decrease in the Bank Base Rate from 1 September, the interest rate will be set at RPI (4.3%).
Please monitor this website regularly as the rates may change during the academic year.
The repaymeInterest rates for Plan 2 income contingent student loans vary between RPI and RPI +3% depending on your circumstances.
The applicable rate of RPI is 4.3% for the period 1 September 2024 to 31 August 2025.nt threshold for Plan 1 loans will rise to £26,065 from 6 April 2025 to 5 April 2026.
Income Contingent Student Loans for Plan 2 (2012-2023) undergraduate loans
| Your circumstances | Interest rate |
|---|---|
| Whilst studying and until the April after leaving the course | RPI + 3% (7.3%) |
| Post-study. | Variable interest, dependent upon income. RPI (4.3%), where income is £28,470 or less, rising on a sliding scale up to RPI + 3% (7.3%), where income is £51,245 or more. |
Interest rates are subject to any caps to reflect the Prevailing Market Rate.
The income threshold for repayment of Plan 2 loans will rise to £28,470 from 6 April 2025 to 5 April 2026.
Income Contingent Student Loans for Plan 5 (from 2023 academic year) undergraduate loans
The interest rate for Plan 5 income-contingent repayment student loans is RPI +0%.
The applicable RPI rate is 4.3% for the period 1 September 2024 to 31 August 2025.
From 1 September 2024 until 31 August 2025, the interest rate for Plan 5 loans will be 4.3%.
This rate is subject to any caps to reflect the Prevailing Market Rate.
The income threshold for repayment of Plan 5 loans due to come into repayment from April 2026 is £25,000.
Postgraduate Loans - Plan 3
The interest rate for Postgraduate Master's or Doctoral income-contingent repayment student loans is RPI +3%.
The applicable RPI rate is 4.3% for the period 1 September 2024 to 31 August 2025.
From 1 September 2024 until 31 August 2025, the interest rate for Plan 3 loans will be 7.3%.
This rate is subject to any caps to reflect the Prevailing Market Rate.
The income thresholds for repayment of Postgraduate Masters and Doctoral Loans to apply from April 2024 will be announced in due course.
Mortgage Style Loans
The interest rate for Mortgage Style loans is RPI.
The applicable RPI rate is 4.3% for the period 1 September 2024 to 31 August 2025.
From 1 September 2024 until 31 August 2025, the interest rate for mortgage style loans will be 4.3%.
The deferment threshold for mortgage style loans will be £39,543.
Any queries from borrowers who have mortgage style loans should be addressed to their loan administrator.
