Department for Education cuts student loan interest rate to 7.5%

Rate drop from projected double-figure level welcomed, but NUS says they “are still cruelly high”

The Department for Education has announced that the maximum loan interest rate from September will be fixed at 7.3 per cent.

The DfE says the change means a borrower with a student loan balance of £45,000 would reduce their accumulating interest by around £180 per month compared with what they would have paid had rates hit 12 per cent.