This is the highest rate seen since tuition fees for university students in England were raised to £9,000 in 2012.
Many working towards their degrees don't realise interest is being charged during their studies until they get their first statement the year after leaving university.
This is the highest rate seen since tuition fees for university students in England were raised to £9,000 in 2012.about whether the system felt fair. The law says the interest charged on student loans cannot be higher than on unsecured commercial loans that can be taken out on the High Street. So the IFS says the main risk is it might deter some potential students who don't understand the complex system, or very high-earning graduates who might be tempted to raid their savings to pay off their remaining loan.
"There is no good economic reason for this. Interest rates on student loans should be low and stable, reflecting the government's own cost of borrowing."