How interest is calculated - Plan 1
Find out how interest is calculated and applied if you have a Plan 1 student loan, as well as previous interest rates.
When interest is applied
You’re charged interest from the day we make your first payment to you or to your university or college until your loan has been repaid in full or cancelled. Interest is added to your balance each month.
The interest rate charged is either the Retail Price Index or the Bank of England base rate plus 1%, whichever is lower.
What is the Retail Price Index?
It’s a measure of inflation, which measures changes to the cost of living in the UK.
When the interest rate changes
The interest rate is usually set on 1 September each year, based on the Retail Price Index of the previous March, but it can change during the year too.
Previous interest rates
The rates in the table apply to Plan 1 loans only.
| Date | Interest rate |
|---|---|
| 30 August 2024 to 31 August 2024 | 6% |
| 1 September 2023 to 29 August 2024 | 6.25% |
| 21 July 2023 to 31 August 2023 | 6% |
| 9 June 2023 to 20 July 2023 | 5.5% |
| 21 April 2023 to 8 June 2023 | 5.25% |
| 3 March 2023 to 20 April 2023 | 5% |
| 12 January 2023 to 2 March 2023 | 4.5% |
| 2 December 2022 to 11 January 2023 | 4% |
| 20 October 2022 to 1 December 2022 | 3.25% |
| 1 September 2022 to 19 October 2022 | 2.75% |
| 3 March 2022 to 31 August 2022 | 1.5% |
| 13 January 2022 to 2 March 2022 | 1.25% |
| 1 September 2021 to 12 January 2022 | 1.1% |
| 1 September 2020 to 31 August 2021 | 1.1% |
| 7 April 2020 to 31 August 2020 | 1.1% |
| 1 September 2019 to 6 April 2020 | 1.75% |
| 1 September 2018 to 31 August 2019 | 1.75% |
| 1 December 2017 to 31 August 2018 | 1.5% |
| 1 September 2017 to 30 November 2017 | 1.25% |
| 1 September 2016 to 31 August 2017 | 1.25% |
| 1 September 2015 to 31 August 2016 | 0.9% |
| 1 September 2014 to 31 August 2015 | 1.5% |
| 1 September 2013 to 31 August 2014 | 1.5% |
| 1 September 2012 to 31 August 2013 | 1.5% |
| 1 September 2011 to 31 August 2012 | 1.5% |
| 1 September 2010 to 31 August 2011 | 1.5% |
| 1 September 2009 to 31 August 2010 | 0.0% |
| 6 March 2009 to 31 August 2009 | 1.5% |
| 6 February 2009 to 5 March 2009 | 2.0% |
| 9 January 2009 to 5 February 2009 | 2.5% |
| 5 December 2008 to 8 January 2009 | 3.0% |
| 1 September 2008 to 4 December 2008 | 3.8% |
| 1 September 2007 to 31 August 2008 | 4.8% |
| 1 September 2006 to 31 August 2007 | 2.4% |
| 1 September 2005 to 31 August 2006 | 3.2% |
| 1 September 2004 to 31 August 2005 | 2.6% |
| 1 September 2003 to 31 August 2004 | 3.1% |
| 1 September 2002 to 31 August 2003 | 1.3% |
| 1 September 2001 to 31 August 2002 | 2.3% |
| 1 September 2000 to 31 August 2001 | 2.6% |
| 1 September 1999 to 31 August 2000 | 2.1% |
| 1 September 1998 to 31 August 1999 | 3.5% |
Updates to this page
Last updated 1 September 2024 + show all updates
-
Previous interest rates table has been updated
-
Previous interest rates table has been updated
-
Previous interest rates table has been updated
-
Previous interest rates table has been updated
-
Previous interest rates table has been updated
-
Update has been made to the previous interest rates table
-
Updates have been made to the previous interest rates table
-
Previous interest rates table has been updated
-
Updates have been made to the previous interest rates table
-
Previous interest rates table has been updated
-
Updated the previous interest rates table
-
The previous interest rates table has been updated
-
Updates have been made to the previous interest rates table
-
1 September 2020 to 31 August 2021 | 1.1% has been added to the interest rate table
-
Updated interest rate as of 7 April 2020
-
Updated interest rate as of 19 March 2020
-
Updated historical interest rate as of 11 March 2020
-
First published.