Student Loans Company

“Graduates in England who became liable to pay back their loans in April 2026 had an average debt of £47,730, external, according to the Student Loans Company - down from £53,000 the year before.”

“The applicable Retail Price Index (RPI rate) is 4.1 per cent for the period September 1, 2026 to August 31, 2027,”

“Plan 1 holders will be charged 4.1 per cent over the coming year.”

“The maximum interest rate on Plan 1 Income Contingent Repayment Loans during the period September 1, 2026 until August 31, 2027 will be 4.1 per cent.”

“Graduates repaying under Plan 2 face interest charges that fluctuate between the base RPI figure of 4.1 per cent and RPI plus three percentage points, ordinarily reaching as high as 7.1 per cent depe…”

“However, the newly imposed cap means no Plan 2 borrower will pay more than six per cent during the 2026-27 period.”

“The interest rate for Plan 3 is RPI + three per cent (7.1 per cent), and the maximum interest rate applied to Plan 3 loans will be capped at six per cent between September 1, 2026 to August 31, 2027.”

“Those holding Plan 5 undergraduate loans will be charged interest at the RPI rate of 4.1 per cent for the year ahead.”

“Mortgage Style Loans carry the same 4.1 per cent rate throughout the period, with a deferment threshold set at £44,311 from 1 September 2026 to 31 August 2027.”

“The repayment threshold for Plan 1 borrowers is due to rise to £28,005, applying from April 6, 2027 through to April 5, 2028.”

“roughly 195,000 of the 239,000 foreign loan recipients hold settled status.”