Interest is charged from the day we make your first payment to you or your uni or college until your loan is repaid in full or cancelled.
The interest rate is based on the UK Retail Price Index (RPI), which measures changes to the cost of living in the UK.
The interest rate is updated once a year in September, using the RPI from March of that year. In some instances the interest rate may be reduced on a temporary basis to make sure you’re not being charged a higher rate than the average charged by commercial UK banks.
How much interest is charged depends on your circumstances
When you’re at uni or college
While you’re studying up until the April after you leave your course, the interest charged will normally be RPI plus 3%.
When you’ve left your course
From the April after you’ve left your course, interest will be based on your income up to a maximum of RPI plus 3%.
If you don’t keep your details up to date
You’ll normally be charged RPI plus 3% whatever your income until we have all the information we need.