Britain announces hike in Student Plan1 loans interest rates to 5.5%
London
The British Department for Education on Friday announced changes in the interest rates for Student Plan 1 loans that will be applicable from 9 June 2023.
The decision from the Student Loan Company comes after the Bank Base Rate increased to 4.5% from 11 May 2023 onwards.
The Student Plan1 loans under Pre-2012 income contingent have interest from March prior to September when new rates are implemented or bank base rate + 1% under the low-interest cap.
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This low-interest cap mechanism means that the interest rate on Plan1 loans changes automatically if there is any change in Bank Base Rates.
As the maximum interest rate for Plan1 loans at present is 9%, the Bank Base Rate comes into effect under the low-interest cap.
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