Rt Hon Anne-Marie Trevelyan MP, Member of Parliament for Berwick-upon-Tweed, has welcomed news from the Government that Student loan interest rates will be capped at 6.3% from September to help students struggling with the cost of living.
Due to global economic pressures, student loan borrowers faced a 12 per cent interest rate in September.
That is why the Government is now capping student loan interest rates at 6.3 per cent from September 2022, now using market rates rather than predicted rates to bring down student loan interest rates by the largest amount on record. That means a borrower with a balance of £45,000 would reduce their accumulating interest by around £210 per month compared to 12 per cent interest – on the total value of the loan as monthly repayments do not change.
The cap is automatically applied, so graduates do not need to take any action. The Government has also cut future interest rates so that from September 2023 no new graduate will have to pay back more than they have borrowed in real terms.
This is fantastic news for so many students struggling during the current rise in the cost of living. I know the concern many students and their families had over this, so I really welcome this certainty.
Anne-Marie welcomed the new rate, saying:
“These changes will help ensure our world class universities remain open to everybody – no matter their financial background – and enable more people to benefit from the amazing opportunities a higher education opens”
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