Student Loans Interest and Repayment Threshold Announcement


The Department for Education (DfE) today (08 August 2019) confirmed the annual updates to the Interest Rates and Thresholds of Income Contingent Student Loans and Mortgage Style Student Loans, as set out in the relevant regulations and terms and conditions of the loans.


Income Contingent Student Loans

Undergraduate loans

Income Contingent Student Loans for pre-2012 (Plan 1) loans


From 1 September 2019 until 31 August 2020, the maximum interest rate that can be set for the existing Income Contingent Repayment Loans will be 2.4%. However, the low interest cap will be triggered, and therefore the rate to be charged from 1 September 2019 will be 1.75%.

Please monitor this website regularly as the rates may change during the academic year.


From 6 April 2020, the repayment threshold for pre-2012 (Plan 1) loans will rise to £19,390.


Postgraduate Loans

From 1 September 2019 until 31 August 2020, the interest rate for borrowers in England taking out a Postgraduate Masters or a Doctoral loan will be 5.4% (RPI + 3%). The repayment threshold for Postgraduate loans continues to be £21,000.


Mortgage Style Loans

From 1 September 2019 until 31 August 2020, the interest rate for mortgage style loans will be 2.4%. The deferment threshold for mortgage style loans will be £32,347. Any queries from borrowers who have mortgage style loans should be addressed to their loan administrator.