The Department for Education (DfE) has confirmed that the current interest rate for pre-2012 income contingent (ICR) student loans will remain at 1.50%.
On 17 March, the Bank of England base interest changed to 0.75%. This means that the Bank base rate + 1% is now 1.75%.
Pre-2012 ICR student loans have an interest rate of either RPI (from the March prior to the September when the new interest rates are implemented) or the Bank Base Rate + 1%, whichever is the lower (this is known as the “low interest cap”). As RPI is currently lower than the Bank base rate +1%, pre 2012 ICR student loans now have an interest rate of RPI.