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Plan 5 Student Loan Interest 13.5%

Js358

Js358 Posts: 1 Newbie

13 September 2024 at 12:27PM in Student MoneySaving

My daughter’s loan account (Plan 5) states that her interest rate is 13.5%.
I can see from a thread on Reddit she is not the only one.

I believe the current rate according to the Gov site should be 4.3%, as it has been capped at this.

Is she being charged at 13.5% if this what’s displayed?
Would be good to know if anyone else has the same or a different rate being given by SLC.

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Comments

Exodi Posts: 3,682 Forumite

13 September 2024 at 12:31PM edited 13 September 2024 at 12:35PM

Last year (likely where the 13.5% figure comes from):

https://www.gov.uk/government/news/student-loans-interest-rates-and-repayment-threshold-announcement--4

This year:

https://www.gov.uk/government/news/student-loans-interest-rates-and-repayment-threshold-announcement--5

Worth clarifying with SLC.

Know what you don't
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silvercar Posts: 49,241 Ambassador

13 September 2024 at 12:32PM edited 13 September 2024 at 12:49PM

Current interest rate on Plan 5 is quoted as 8% here:

https://www.gov.uk/guidance/how-interest-is-calculated-plan-5

but then on the link below it is 4.3%. How bizarre:

https://www.gov.uk/repaying-your-student-loan/what-you-pay

And this one confirms 4.3%:

https://commonslibrary.parliament.uk/research-briefings/sn01079/

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