Student Loan Interest FAQs - Interest Rate Questions Answered
Answers to the most common questions about student loan interest rates, how they change, and how they affect your total repayment.
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Why Trust These Interest FAQs?
- Based on official UK loan plans
- Calculators built by financial experts
- Answer verified with official sources
Interest Frequently Asked Questions
How is interest calculated on my student loan?
Interest calculation varies by loan plan. Plan 1 uses the lower of RPI or Bank Rate + 1%. Plan 2 varies based on income from RPI to RPI+3%. Plan 5 uses RPI only. Postgraduate loans use RPI+3%.
Source: Student Loans Company
Learn more: Read our detailed guide
Does interest start accumulating while I'm studying?
Yes, interest starts accumulating from the moment your loan is paid to you or to your university. For Plan 2 loans, you'll be charged RPI + 3% during your studies.
Source: Student Finance England
How often is the interest rate updated?
Student loan interest rates are typically updated once per year in September, based on the RPI from the previous March.
Source: Student Loans Company
Disclaimer:
This guide provides general information based on current student finance policies. Individual circumstances may vary. The information was accurate at the time of publication but is subject to change.
Related Resources
Sources & References
- 1.Interest rates information
Student Loans Company
- 2.RPI Announcement
Office for National Statistics
Our content is based on the latest information from official UK government sources. The calculators use current repayment thresholds and interest rates as defined by Student Finance England and equivalent bodies.