Confusingly, interest levels for Plan 2 loans may differ a great deal. Also to actually help keep you on your own feet, it differs by two different sorts of scenario.
Arrange 2 interest rates while you are learning
The interest rate on your Student Loan is RPI plus 3% while studying, and until the April after you’ve left your course.
The RPI price is placed every September making use of the rate from March associated with year that is same. RPI in March 2019 was 2.4%, therefore from 2019 – August 2020 your Student Loan will accrue interest at a rate of 5.4% september.
Keep in mind though, this figure changes every September!
Plan 2 interest levels once you have finished
After graduating, the attention price on the education loan is defined at RPI plus any such thing from 0–3% based on your earnings.
- In the event that you make ?25,725 or less, it’s just RPI
- In the event that you make over ?25,725, it really is RPI plus a portion as much as 3%. This included portion shall begin low and increase in line with anything you’re making. It prevents increasing once you begin making significantly more than ?46,305, of which point it really is capped at 3%.
For example, in the event that you earn ?36,015 (halfway between ?25,725 and ?45,725) the attention put on your loan that would be RPI + 1.5% (1.5% being half of 3%) year.
Into the easiest and minimum number-y means feasible, which means that the larger your earnings, the greater amount of interest should be included with your loan unless you pay it back.