Income Contingent Student Loan repayment plans & interest rates and calculations (Scotland)
Published 15 June 2023
Applies to Scotland
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This publication is available at https://www.gov.uk/government/statistics/student-loans-in-scotland-2022-to-2023/income-contingent-student-loan-repayment-plans-interest-rates-and-calculations-scotland
Repayment of Income Contingent Loans
Borrowers normally become liable to make repayments from the April following the completion, or withdrawal from their course. This is their SRDD (Statutory Repayment Due Date).
Repayments are at the rate of 9% of income above the income threshold. The table below shows the change in income thresholds by financial year:
| Period applicable | Annual income threshold |
|---|---|
| 6 Apr 2000 to 5 Apr 2005 | £10,000 |
| 6 Apr 2005 to 5 Apr 2012 | £15,000 |
| 6 Apr 2012 to 5 Apr 2013 | £15,795 |
| 6 Apr 2013 to 5 Apr 2014 | £16,365 |
| 6 Apr 2014 to 5 Apr 2015 | £16,910 |
| 6 Apr 2015 to 5 Apr 2016 | £17,335 |
| 6 Apr 2016 to 5 Apr 2017 | £17,495 |
| 6 Apr 2017 to 5 Apr 2018 | £17,775 |
| 6 Apr 2018 to 5 Apr 2019 | £18,330 |
| 6 Apr 2019 to 5 Apr 2020 | £18,935 |
| 6 Apr 2020 to 5 Apr 2021 | £19,390 |
| 6 Apr 2021 to 5 Apr 2022 | £25,000 |
| 6 Apr 2022 to 5 Apr 2023 | £25,375 |
Further details on the calculation of interest can be found below.
Interest rates and calculations
Whilst in repayment the annual Retail Price Index (RPI) from March to March is always used as the basis for the interest rate for all types of student loan from the following September to August.
The RPI at March 2014 was 2.5% so the cap was applied from 1 September 2014 and 31 August 2015 where the interest rate was 1.5%. The RPI at March 2015 was 0.9% so the cap did not apply between 1 September 2015 and 31 August 2016 where the interest rate was 0.9%. The table below shows interest rate by year:
| Period applicable | RPI @March | Plan 1 interest rate |
|---|---|---|
| 1 Sep 2012 to 31 Aug 2013 | 3.6% | 1.5% |
| 1 Sep 2013 to 31 Aug 2014 | 3.3% | 1.5% |
| 1 Sep 2014 to 31 Aug 2015 | 2.5% | 1.5% |
| 1 Sep 2015 to 31 Aug 2016 | 0.9% | 0.9% |
| 1 Sep 2016 to 31 Aug 2017 | 1.6% | 1.25% |
| 1 Sep 2017 to 31 Aug 2018 | 3.1% | 1.5% |
| 1 Sep 2018 to 31 Aug 2019 | 3.3% | 1.75% |
| 1 Sep 2019 to 31 Aug 2020 | 2.4% | 1.75% |
| 1 Sep 2020 to 31 Aug 2021 | 2.6% | 1.1% |
| 1 Sep 2021 to 31 Aug 2022 | 1.5% | 1.5% |
| 1 Sep 2022 to 31 Aug 2023 | 9.0% | 5.0% |