The UK Department for Education has announced new interest rates and repayment thresholds for student loans for the 2026-27 academic year, including a 6 per cent cap on interest rates for Plan 2 and Plan 3 loans.
The Student Loans Company made the announcement on Monday, August 10, 2026, confirming that the new rates will apply from September 1, 2026, to August 31, 2027.
“The applicable Retail Price Index (RPI rate) is 4.1% for the period 1 September 2026 to 31 August 2027,” the Student Loans Company said.
For Plan 1 undergraduate loans, it said: “The interest rate for Plan 1 income-contingent repayment student loans is RPI (4.1%) or the Bank Base Rate + 1% (currently 4.75%), whichever is lower.”
It added: “The maximum interest rate on Plan 1 Income Contingent Repayment Loans during the period 1 September 2026 until 31 August 2027 will be 4.1%.”
