How interest is calculated – Postgraduate Loan
Find out how interest is calculated and applied if you have a Postgraduate Loan from England or Wales, as well as previous interest rates.
If you had postgraduate student finance from Scotland or Northern Ireland, you’ll repay under Plan 1.
When interest is applied
You’re charged interest from the day we make your first payment to you or to your university or college until your loan has been repaid in full or cancelled. Interest is added to your balance each month.
The interest rate charged is the Retail Price Index plus 3%.
What is the Retail Price Index?
It’s a measure of inflation, which measures changes to the cost of living in the UK.
When the interest rate changes
The interest rate is usually set on 1 September each year, based on the Retail Price Index of the previous March.
Previous interest rates
The rates in the table apply to the Postgraduate Loan only.
| Date | Interest rate |
|---|---|
| 1 September 2018 to 31 August 2019 | 6.3% |
| 1 September 2017 to 31 August 2018 | 6.1% |
| 1 September 2016 to 31 August 2017 | 4.6% |
Published 15 May 2019
Last updated 3 September 2019 + show all updates
- Updated table with interest rate for 2018/19
- Added translation
- Added translation
- First published.
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