Key facts on interest

Film description: You’ll have to pay interest on any student loans you borrow. To help you understand how interest works, here are some key facts you should know.

You’ll have to pay interest on any student loans you borrow.

To help you understand how interest works, here are some key facts you should know.

Interest is charged on your student loan from the day we make your first payment until your loan is paid off in full or cancelled.

The government sets the interest rate.

You’ll be charged the UK Retail Price Index, or RPI, plus up to 3%.

While you’re studying and up until after you finish or leave your course, you'll pay RPI plus 3%.

When you enter repayment, interest will vary depending on your income, up to a maximum of RPI plus 3%.

RPI is based on inflation which measures how prices change over time.

So if inflation is 5%, a burger that costs £5 this year will cost £5.25 next year.

To find out the current RPI rate and for more information on interest, go to www.gov.uk/repaying-your-student-loan

And for helpful tools and guides on what, how and when to repay, visit www.studentfinancewales.co.uk

On screen: For helpful tools and guides visit: the Student Finance Wales website, the SFW Facebook account, the SFW Twitter account, the SFW YouTube channel.



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