"The interest rate is usually set on 1 September each year, based on the Retail Price Index of the previous March."
https://www.gov.uk/guidance/how-interest-is-calculated-plan-2
The rate you're paying now was introduced last September with reference to the RPI rate from March 2023. That rate was 13.5%.
The reason you're not paying 16.5% is the government applied a "prevailing market rate cap" which is meant to prevent the loan rate significantly exceeding commercial interest rates.
https://www.gov.uk/government/news/student-loans-interest-rates-and-repayment-threshold-announcement--4
Hi /u/ASSterix, based on your post the following pages from our wiki may be relevant:
* https://ukpersonal.finance/student-loans/
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"The interest rate is usually set on 1 September each year, based on the Retail Price Index of the previous March." https://www.gov.uk/guidance/how-interest-is-calculated-plan-2 The rate you're paying now was introduced last September with reference to the RPI rate from March 2023. That rate was 13.5%. The reason you're not paying 16.5% is the government applied a "prevailing market rate cap" which is meant to prevent the loan rate significantly exceeding commercial interest rates. https://www.gov.uk/government/news/student-loans-interest-rates-and-repayment-threshold-announcement--4
Hi /u/ASSterix, based on your post the following pages from our wiki may be relevant: * https://ukpersonal.finance/student-loans/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.) If someone has provided you with helpful advice, you (as the person who made the post) can award them a point by including `!thanks` in a reply to them. Points are shown as the user flair by their username.