Are student loan rates going up this month?

YorkshireJames
YorkshireJames Posts: 54
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edited 2 February 2023 at 5:01PM in Student MoneySaving
I read an article that said the rates were capped until the end of this month. Does anyone know how much they are going up? There are so many rates, changes, caps and plans and I can't seem to find it on the MSE website.

I'm on plan 1. Thanks for your help!

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  • MSE_ForumTeam5
    MSE_ForumTeam5 Posts: 900
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    edited 2 February 2023 at 5:03PM
    We've moved this across to the Student MoneySaving board which is where student loans are usually discussed.
    Official MSE Forum Team member. Please use the 'report' button to alert us to problem posts, or email [email protected]
  • silvercar
    silvercar Posts: 46,768
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    https://www.gov.uk/guidance/how-interest-is-calculated-plan-1

    How the interest rate is set: The interest rate is the LOWER of the following:
    Either: The Bank of England base rate, plus 1%...
    Or: The rate of inflation. This is fixed for a year on 1 September based on the Retail Prices Index (RPI) measure from the previous March, though the actual rate is only officially confirmed each August.
    March 2022's inflation rate was 9%, which is more than the Bank of England base rate (3.5%) plus 1%. So the current interest rate is 4.5%.

    That was the MSE article recently. As interest rates went up today, I would expect that the current rate will now increase to 5%. 

    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Thanks. So it could be changed during the year, we just don't know when.
  • I can't speak for others, but my plan 1 student loan (started studies autumn 2001) interest rate was 1.1% in December 2021, 1.25% in January 2022, 1.5% in March 2022, 3.5% by November, 4% in January 2023 and now 4.5% in February 2023. 

     :'( 
  • Ed-1
    Ed-1 Posts: 3,852
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    I can't speak for others, but my plan 1 student loan (started studies autumn 2001) interest rate was 1.1% in December 2021, 1.25% in January 2022, 1.5% in March 2022, 3.5% by November, 4% in January 2023 and now 4.5% in February 2023. 

     :'( 
    Soon to be 5% for Plan 1 and 4.

    And 6.9% for Plan 2 and 3:
    https://www.gov.uk/government/news/change-to-maximum-plan-2-and-postgraduate-student-loan-interest-rates
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