Changes to the Interest Rate and Deferment Threshold for Mortgage Style Loans – 2023/24
The Department for Education (DfE) have confirmed that the new interest rate to be applied to all loans currently being serviced by Thesis Servicing for the period 1st September 2023 until 31st August 2024 will be 13.5%.
The new interest rate is always linked to the Retail Price Index (RPI) value from the previous March. RPI in March 2023 was 13.5%.
Interest will continue to be applied to accounts during any period of deferment.
Each September following the application of the new interest rate, all accounts in a repayment status will receive a new monthly repayment amount for the new 12 month period. This amount is calculated taking into account the remaining balance and term of the loan, and the interest that will be accrued during the same period against the new rate.
The DfE have also confirmed the new deferment threshold for mortgage style loans for 1st September 2023 until 31st August 2024. The new threshold is a gross annual income of £38,255 (equivalent to £3,187.91 per month).
The threshold is calculated annually by DfE and is set at 85% of average national earnings.
If you are not currently deferred but feel you are now eligible to defer your repayments for 12 months, please call our Customer Service Officers on 0333 004 5045 quoting your loan reference number and someone will be happy to assist you.