Student loan repayments: Interest rates to rise

18th August 2022


Due to Bank of England increasing interest rates, the Department for Education (DfE), in conjunction with the Student Loans Company, have confirmed changes to interest rates & repayment thresholds.


Plan 1 Type Student Loan (those who started study before 1-Sep-12)


  • From 1 Sept 22 the interest rate will increase from 1.5% to 2.75%. This will change again if interest rates rise again as the rate is linked to the existing bank rate, plus 1%
  • From April 2023, the repayment threshold will rise from £20,195 to £22,015.


Plan 2 & Postgraduate Loans (those who started study after 1-Sep-12) 


  • Interest rates for Plan 2 are usually between RPI & RPI plus 3%. However, due to accelerating inflation DfE have announced that a cap of 7.3% will be placed on Plan 2 & Postgraduate loans.
  • From Sept to 30 Dec 2022 the maximum rate of interest will increase from 4.5% to 6.3%
  • From Dec to Aug 23 the maximum rate of interest will be 7.3%
  • From April 23 the repayment threshold will be £27,295 for Plan 2 repayments. The threshold for Postgraduate loans is yet to be announced.
Disclaimer - All information in this post was correct at time of writing.
Other Blogs
Nick Edgley
26th February 2024 Short Term Lets and Airbnb: Planning Permission

Thinking of offering your property for short term lets? Planning permission may be required.   What’s Changing? From this summer the Government will introduce legislation to require owners of new short term lets in England to secure planning permission to use their properties for this purpose. You will need to be aware of this requirement…

Maddie Milner
22nd February 2024 Companies House fees increasing

From 1st May 2024, Companies House fees are increasing. These increases are following the announcement of the Economic Crime and Corporate Transparency (ECCT) Bill, which is giving Companies House greater powers in verifying the accuracy of information and tackling economic crime.   Some of the main rises in costs are as follows:   New fee…

Louise Bassett
21st February 2024 How is the government supporting farmers?

Let’s ask the question, ‘How is the government supporting farmers?’   DEFRA shared a press release from the Prime Minister yesterday, citing his and his party’s commitment to farmers and rural communities.   We already know that Sustainable Farming Incentive (SFI) and Countryside Stewardship payments are being increased across the board by approximately 10%, but…

Shamus Chaplin
20th February 2024 Update on Double-Cab Pick-Ups: HMRC are reversing

Update on Double-Cab Pick-Ups   On the 12th February 2024, HMRC announced that their interpretation of the legislation had changed regarding the favourable tax treatment of pick-up trucks from 1st July 2024. However, after consulting farmers, construction workers and other industry professionals they have now reversed their decision!     Current Position HMRC interprets the…

Ian Piper
19th February 2024 SME Ely Business Awards 2024: 1 Week Left To Enter!

There is just one week remaining to enter the SME Ely Business Awards for 2024!   Celebrate your business’ achievements and be in with a chance of winning by entering today. Entries close on Thursday 26th February 2024 at 3pm. Find Out More Click here to find out more about the SME Ely Business Awards…

Maddie Milner
16th February 2024 Companies House changes from 4th March 2024

,Find out more about the upcoming Companies House changes from 4th March 2024 here.     Registered email addresses One of the main changes from the 4th March 2024 are Companies House require all companies to provide a registered email address which will be collected within your companies next Confirmation Statement.   New companies will…