x Turn on thread page Beta
 You are Here: Home >< Midlands

# Interest calculation watch talk to the uni Official Rep

1. Hello,
I would like to ask you about postgraduate student loans. I am a student from the EU and would like to apply for postgraduate student loan for studies in the UK since September 2016. But I do not understand exactly details of the interest rate. In Terms and Conditions I read that current interest rate is approximately 3,9%. I understand that 3% are ‘fixed amount’ and 0,9% are Retail Price Index. So far it is clear, but I do not understand system of interest calculation. Are 3,9% interest per year (per annum)? It would mean that if I for example had 7.000 GBP loan, I would own after first year 7273 GBP (7 000 * 1,039), after second year 7556,6 GBP (7273 * 1,039), in 2018 it would rise to 7851,4 GBP etc.
Or is the loan interested just once (not during years)?

Thank you very much,
Kind regards,
Jiri Brozek
2. (Original post by Sun-Man)
Hello,
I would like to ask you about postgraduate student loans. I am a student from the EU and would like to apply for postgraduate student loan for studies in the UK since September 2016. But I do not understand exactly details of the interest rate. In Terms and Conditions I read that current interest rate is approximately 3,9%. I understand that 3% are ‘fixed amount’ and 0,9% are Retail Price Index. So far it is clear, but I do not understand system of interest calculation. Are 3,9% interest per year (per annum)? It would mean that if I for example had 7.000 GBP loan, I would own after first year 7273 GBP (7 000 * 1,039), after second year 7556,6 GBP (7273 * 1,039), in 2018 it would rise to 7851,4 GBP etc.
Or is the loan interested just once (not during years)?

Thank you very much,
Kind regards,
Jiri Brozek
It is cumulative interest - 3% + RPI every year
3. (Original post by dragonkeeper999)
It is cumulative interest - 3% + RPI every year

I am sorry but I am still not exactly sure... Does it mean that it is interested by 3 % just once and not every year? Thanks a lot
4. (Original post by Sun-Man)
I am sorry but I am still not exactly sure... Does it mean that it is interested by 3 % just once and not every year? Thanks a lot
No, it means it increases EVERY YEAR by 3%+RPI

Updated: August 1, 2016
Today on TSR

### I have imposter syndrome at Cambridge

Poll
Coventry University resources

Unanswered Coventry University ThreadsStalking pages becomes University Connect, connect to other Coventry applicants now!

## Groups associated with this forum:

View associated groups

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE