Rise in the Interest Rate on Student Loans

Each year, student loan interest rates are calculated according to March’s Retail Price Index (RPI) figure, which this year was 2.6%, plus 3% on top; RPI was 2.4% last year. It came into force on 1st September and affects all new students in England and Wales, and graduates who took out loans since 2012. The increase comes at a time when the Bank of England base rate is just 0.1%. A student on a typical three-year course with fees of £9,250 a year and a £6,378 a year maintenance loan can expect to graduate with £46,884 of debt, before any cumulative interest is added.