Student loan pre 2021

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in Loans
I have £3k left to pay on my student loan. Should i pay it off before the 12% increase in September 2022? I earn 40k a year and my interest on the loan atm is 1.5%
Thank you!!
Thank you!!
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In which case, your rate won't increase to 12% in September. It will be the lower of either BoE + 1% or inflation.
How sure are you on this? is the 12% just on new loans?
All details here, but it's only Plan 2 loans that will go to 12%, since they are only based on RPI (along with a constant % increase relative to your earnings).
Plan 1 are either RPI OR the BoE rate + 1%, whichever is lowest. BoE rate is now 1%, so will increase from 1.5% to 2%, but since it's the lowest of either RPI or interest rates, it means that the low BoE interest rate is ensuring that Plan 1 interest rates don't increase to 12%.
https://forums.moneysavingexpert.com/categories/student-money-saving