Welsh student loans capped at 6.3% for three months from 1 September


JEREMY Miles MS, Minister for Education and Welsh Language has announced that Welsh student loans have been capped for three months at 6.3%.

In a statement the Minister said:

“I made a statement on 13 June 2022 to confirm the intention to cap the interest rate charged to Welsh students on certain loans from September 2022 at 7.3% for a period of 12 months. Following further review, I can state that the rate will be capped at a lower rate of 6.3% for three months from 1 September 2022. This cap has also been announced by the UK Government for English students. 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.

The rate of inflation which determines the interest charged on certain loans reached 9% in the year to March 2022. Interest rates would rise to up to 12% from September 2022 for a period of time before rates are capped. The Welsh Government must ensure that rates do not exceed the prevailing market rate and has taken action three times in the last year to cap the rate on loans and protect students.

The rate on loans taken out by undergraduate students since 2012, and by postgraduate students, will be capped at 6.3% between 1 September 2022 and 30 November 2022. Further rate caps may be applied if the prevailing market rate continues to be below student loan interest rates after that date.

Changes to interest rates do not change monthly student loan repayments, which are charged as a fixed proportion of income. Loan repayments are income contingent. Students repay their loan only if they earn above a threshold, and remaining debts are written off after thirty years.

Living costs should never be a barrier to studying at university, which is why the Welsh Government provides the most generous living costs grants in the UK. Welsh students have less to repay on average than their English peers. The Welsh Government also provides a debt write-off of up to £1,500 for each borrower entering repayment, a scheme unique in the UK.”

Please donate here: Support Carmarthenshire News Online Thank you for supporting independent journalism and contributing to the future of local news in Carmarthenshire. Carmarthenshire News Online has been dedicated to providing unbiased and trustworthy news, free from commercial or political influence. By donating as little as £1, you can help ensure the continuation of this important source of information for the community. Your contribution will have a significant impact on the sustainability of independent journalism. If you're looking to enhance your brand's visibility, we also offer advertising opportunities on our Livestream and podcasts. Our special offers provide excellent value for reaching our engaged audience. To learn more about these opportunities and to discuss your advertising needs, please feel free to call or text us at 07308598604. Thank you again for your support, and together we can ensure the availability of quality local news for Carmarthenshire and beyond.

Please donate here: Support Carmarthenshire News Online

You cannot copy any content of this page