The interest rate on student loans in Wales has been capped at 6.3% in the face of soaring inflation. It was due to rise from the current 4.5% to 7.3%, but is being lowered furrther “to protect students”, said education Minister Jeremy Miles.
The 6.3% rate kicks in from September 1 and will be reviewed again in December. The move will not alter the amount loans are paid off each month, but will change the amount owed overall.
Announcing that Wales would lower student loan interest rates to 6.3% in line with an announcement made in England Mr Miles said in a written statement: “The Welsh Government will continue to protect students from high interest rates on their loans, rates which are a result of high levels of inflation.”
