Student loan interest rates – Are you a current student at university or college? Did you Graduate 5, 10, 15 or even 20 years ago? Then you are likely to be one of the many individuals who have a student loan. Have a look here if you need new Short Term Loans for Students.
Find Out About Student Loan Interest Rates
Student loans are a great option to help students pay for college or university fees and help cope with the additional living costs, especially if living away from home. Student loan interest rates are lower than any other loan available, and so is a much viable option for students if they require funds to help them through education.
However depending on when and where you graduated will depend on your student loan interest rates and what rate you will be charged when you repay your loan. There are 3 different student loan arrangements that will affect how much and when you will pay it back.
Studied from 1998 to 2011, or if you are Scottish or Northern Irish student after 2012
If you began university from 1998 to 2011 or were a Scottish or Northern Irish student after 2012 then you will be on an Income-contingent loan. The loan interest rates on this type of loan are currently 0.9%.
Student loan interest rates are set each August and are either lower than the Bank of England base rate plus 1% or the rate of inflation.
Studied from 1990-1997 in Higher Education
If you started higher education between 1990 and 1997 then you are on the old style ‘mortgage’ type of student loan. The student loan interest rates for this type of loan are also 0.9%. This old style interest rate is set every September based on the Retail Prices Index rate.
For students currently studying or are recent graduates in England and Wales
For those who are currently studying or that are recent graduates that live in England and Wales and started higher education 2012 and later then the new style ‘income-contingent’ loan style is relevant.
Student loan interest rates for this circumstance are 3.9%, which is 2015 Retail Price Index plus 3%. The interest rates are set in September every year and are affected by inflation.
Remember that if you are or were a Scottish or Northern Irish student the threshold before you start paying back your student loan is £17,335. Any income over this figure you will pay interest of 0.9%. If this does not apply to you, the threshold that will apply will be £21,000.
It’s also good to remember that whatever you haven’t paid back after 30 years after the date of graduating the debt will be totally written off.
See also Student Loan Repayment.