Student Loan Interest Rate Set at 5.3% for 2026-27: What Graduates Will Pay
Published: 24 February 2026
The Event
The Student Loans Company announced today that the interest rate on Plan 2 student loans will be five point three percent for the 2026-27 tax year, starting in April 2026. This rate applies to loans taken out by students who started university between September 2012 and July 2023.
The rate is calculated based on the Retail Price Index (RPI) measure of inflation, which was two point eight percent in March 2025, plus up to three percentage points depending on income. For graduates earning above the upper threshold of forty-nine thousand one hundred and thirty pounds, the maximum rate of RPI plus three percent applies, giving five point eight percent. For those earning below twenty-seven thousand two hundred and ninety-five pounds, the rate is RPI only, two point eight percent.
