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.

DateInterest rate
1 September 2019 to 11 March 20201.75%
1 September 2018 to 31 August 20191.75%
1 December 2017 to 31 August 20181.5%
1 September 2017 to 30 November 20171.25%
1 September 2016 to 31 August 20171.25%
1 September 2015 to 31 August 20160.9%
1 September 2014 to 31 August 20151.5%
1 September 2013 to 31 August 20141.5%
1 September 2012 to 31 August 20131.5%
1 September 2011 to 31 August 20121.5%
1 September 2010 to 31 August 20111.5%
1 September 2009 to 31 August 20100.0%
6 March 2009 to 31 August 20091.5%
6 February 2009 to 5 March 20092.0%
9 January 2009 to 5 February 20092.5%
5 December 2008 to 8 January 20093.0%
1 September 2008 to 4 December 20083.8%
1 September 2007 to 31 August 20084.8%
1 September 2006 to 31 August 20072.4%
1 September 2005 to 31 August 20063.2%
1 September 2004 to 31 August 20052.6%
1 September 2003 to 31 August 20043.1%
1 September 2002 to 31 August 20031.3%
1 September 2001 to 31 August 20022.3%
1 September 2000 to 31 August 20012.6%
1 September 1999 to 31 August 20002.1%
1 September 1998 to 31 August 19993.5%
Published 15 May 2019
Last updated 19 March 2020 + show all updates
  1. Updated historical interest rate as of 11 March 2020

  2. First published.

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