Interest rate from 1 September 2009
The Student Loans Company will apply 0% interest rate from 1 September 2009 – 31 August 2010 across the UK.
To date the March Retail Price Index (RPI) has set the student loan interest rate for the following academic year (1 September - 31 August), however the law allows Government not to set an interest rate: effectively making the rate 0%.
The rate of interest makes no difference to borrowers’ monthly repayments. Borrowers repay 9% of their earnings over the income threshold of £15,000. Whatever the rate of interest is, that monthly repayment will not change.
The decision has been taken because loans are already well subsidised, and it would be difficult to justify to taxpayers a situation whereby students take out loans in 2009/10 and their balances are immediately reduced.
The repayment threshold will also remain at £15,000 for the next 12 months. Had the Government used a negative RPI rate to calculate this, the threshold would have reduced and borrowers would have started repaying earlier and ended up paying more. Setting interest at 0% has prevented this from happening.
This will affect those who have an outstanding student loan taken out after September 1998 as well as applicants for both maintenance loans and tuition fee loans in the current and next academic year.
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SLC Welsh Language Scheme
The Welsh Language Board have approved the Welsh Language Scheme for the Student Loans Company. It describes how we will develop, promote and deliver Welsh language services. The scheme was prepared in cooperation with the Welsh Language Board and is consistent with its guidelines and the 1993 Welsh Language Act’s principle of treating the Welsh and the English languages on the basis of equality.
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Internet-Savvy Students at Greatest Risk from Online Fraud
Internet users in full-time education are almost twice as confident online as other internet users – more than half consider themselves ‘very’ internet literate, compared to the national average of 26%. Despite this, they are the most dismissive of the risk of online crime and of the importance of basic security tools (such as anti-virus software) in protecting them against it.
- One in 10 consider there to be ‘no risk’, more than double the national average
- Almost one in three do not see security software as an important measure, far exceeding the national average
Students are amongst the greatest culprits in taking unnecessary risks online. For example:
- 28% admit to entering personal details into a website from an unsecured computer
- Almost one in five regularly post valuable personal information (such as their date of birth or home address) on social networking sites, almost double the national average
For more information, and to read the whole report, visit Get Safe Online.
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Looking for EMA or ALG (FE)? Staying on at school or college?
Find out about money you could get and how to get it for 08/09 and 09/10 school and college years.
Have a look at our EMA/ALG(FE) microsite for all the details
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Interest rate reduction for Income Contingent Loans
The interest rate payable on income based student loans has been reduced following the latest change to the Bank of England rate to 0.5% on Thursday 5th March. The new rate for income based student loans is 1.5% effective from the 6th of March until further notice. Interest is applied to loans from the date they are paid to you until they are repaid in full.
Why has it changed?
Student loans are not like commercial loans. They are subsidised by Government and attract a low cost interest rate. This interest rate is based on the annual March retail price index (RPI) or the highest base rate of a number of major banks plus 1%; whichever is lower.
To date, the RPI has always been the lower of the two. The reduced bank base rate plus 1% is now lower than the March 2008 RPI so we have presently adjusted the student loan rate to 1.5%.
Where you can get more information:
Student Loan Repayment Website
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Thinking of starting a course in 09/10?
Online applications are now available. Please login to apply online or register with our online service if you are a new customer.
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Important information if you have recently changed your bank details.
Please login to your account and enter your new bank details as soon as possible. This will allow us to pay your next Student Finance instalment to the correct account.
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New repayment site for customers
We are delighted to announce that our new website is now live. This can be found at www.studentloanrepayment.co.uk.
Student Loan Repayment provides information and guidance for anyone who has completed their studies and has a student loan with SLC. It also offers a range of online services for you to:
- Calculate your balance online
- Update your contact information
- Make online loan payments by debit or credit card
We believe you will find these improvements useful, especially if you live or work overseas.
This is available to both customers with Fixed Term and Income Contingent Repayment loans.
If you used Student Finance Direct to apply for grants or loans, you can use your existing ART ID, secret answer and password to login and take advantage of our secure portal.
If you have an existing loan with SLC, expect to receive a letter to tell you about our new service.
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Beware of bogus emails
Student Finance Wales is aware of a number of email campaigns claiming to be Student Finance Wales. These bogus emails (phishing) may ask you to provide your security details. If you receive a suspicious email please forward it immediately to security @slc.co.uk.
Protecting you and your information is paramount to Student Finance Wales. Remember we will never email you asking for login or user details. It's easy to protect yourself online - to find out more about protecting your security, please visit our security information page
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UCAS Application Numbers
UCAS have recently changed their processes for academic year 2009/2010 onwards. They no longer provide the UCAS application number to students, simply a Personal ID. Our online application only asks for the Personal ID. However, we do ask for the application number on the paper forms. The forms are already printed for 2009/2010. Please be assured that students’ applications will not be held up as a result of not providing the UCAS application number. We will amend our paper application forms from academic year 2010/2011.
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The student finance rules are changing for academic year 10/11 - courses starting after September 2010. You will no longer receive the tuition fee grant if you are a new student but will be able to apply for an enhanced tuition fee loan.