How interest is calculated – Plan 1
Find out how interest is calculated and applied if you have a Plan 1 student loan, as well as previous interest rates.
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 either the Retail Price Index or the Bank of England base rate plus 1%, whichever is lower.
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, but it can change during the year too.
Previous interest rates
The rates in the table apply to Plan 1 loans only.
| Date | Interest rate |
|---|---|
| 1 September 2019 to 11 March 2020 | 1.75% |
| 1 September 2018 to 31 August 2019 | 1.75% |
| 1 December 2017 to 31 August 2018 | 1.5% |
| 1 September 2017 to 30 November 2017 | 1.25% |
| 1 September 2016 to 31 August 2017 | 1.25% |
| 1 September 2015 to 31 August 2016 | 0.9% |
| 1 September 2014 to 31 August 2015 | 1.5% |
| 1 September 2013 to 31 August 2014 | 1.5% |
| 1 September 2012 to 31 August 2013 | 1.5% |
| 1 September 2011 to 31 August 2012 | 1.5% |
| 1 September 2010 to 31 August 2011 | 1.5% |
| 1 September 2009 to 31 August 2010 | 0.0% |
| 6 March 2009 to 31 August 2009 | 1.5% |
| 6 February 2009 to 5 March 2009 | 2.0% |
| 9 January 2009 to 5 February 2009 | 2.5% |
| 5 December 2008 to 8 January 2009 | 3.0% |
| 1 September 2008 to 4 December 2008 | 3.8% |
| 1 September 2007 to 31 August 2008 | 4.8% |
| 1 September 2006 to 31 August 2007 | 2.4% |
| 1 September 2005 to 31 August 2006 | 3.2% |
| 1 September 2004 to 31 August 2005 | 2.6% |
| 1 September 2003 to 31 August 2004 | 3.1% |
| 1 September 2002 to 31 August 2003 | 1.3% |
| 1 September 2001 to 31 August 2002 | 2.3% |
| 1 September 2000 to 31 August 2001 | 2.6% |
| 1 September 1999 to 31 August 2000 | 2.1% |
| 1 September 1998 to 31 August 1999 | 3.5% |
Published 15 May 2019
Last updated 19 March 2020 + show all updates
-
Updated historical interest rate as of 11 March 2020
-
First published.
Responses