Income Contingent Student Loan repayment plans & interest rates and calculations (Scotland)
Published 20 June 2024
Applies to Scotland
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This publication is available at https://www.gov.uk/government/statistics/student-loans-in-scotland-2023-to-2024/income-contingent-student-loan-repayment-plans-interest-rates-and-calculations-scotland
Repayment of Income Contingent Loans
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 |
| 6 Apr 2023 to 5 Apr 2024 | £27,660 |
Interest rates and calculations
The interest charge is affected by a cap at the bank base rate of +1%. The interest rate is the lower of the Retail Price Index (RPI) at the preceding March, or 1% above the highest base rate of a nominated group of banks calculated regularly during the year.
For example, the RPI in 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 in 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%.
Note: The interest rate does not affect the monthly repayment amount; it will affect the time taken to repay.
The table below shows interest rate by year:
| Period applicable | RPI @March | 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% |
| 1 Sep 2023 to 31 Aug 2024 | 13.5% | 6.25% |