 |
answer text |
<br /><p>Interest rates on student loans vary according to a number of factors, including
a borrower's level of earnings, and whether they remain in contact with the Student
Loans Company to ensure they are repaying when they are eligible to do so.</p><br
/><p>The maximum interest rate for the post-2012 system is the Retail Price Index
(RPI) figure plus 3%. The maximum rate applies whilst the borrower is studying; is
the maximum interest rate for those borrowers earning £41,000 and over; and is the
default interest rate for those borrowers who fail to keep in touch with the Student
Loans Company.</p><br /><p>Once a borrower is due to repay, a variable rate of interest
will be charged, which is dependent upon income. Borrowers with an income of £21,000
or less will accrue interest at RPI. For a borrower with income greater than £21,000,
a real rate of interest will be tapered in, reaching a maximum of RPI plus 3% at an
income of £41,000 or more.</p><p><strong></strong></p>
|
 |
