Ministers have intervened to cut student loan interest rates for the second time this summer as inflation and the cost of living continue to soar.
The Department for Education announced on Wednesday that the maximum rate will now be fixed at 6.3% from September. It was already due to be capped at 7.3%, after an intervention by ministers in June to bring it down from the 12% it would have reached by September, based on earlier inflation figures plus 3%.
The DfE said the new 6.3% rate would mean a borrower with a student loan balance of £45,000 would reduce their accumulating interest by about £210 a month compared with 12% interest rates. This is on the total value of the loan.
