2A

Subject to paragraphs (2B) and (2C), during any academic year or part of any academic year, where a borrower makes repayments in accordance with regulation 18 or repays all of the outstanding balance of the student loan under regulation 15(1), post-2012 student loans bear interest at the rate which will result in an annual percentage rate of charge determined in accordance with the Consumer Credit (Total Charge for Credit) Regulations 20105 equal to—

a

for a borrower to whom Part 3 or 4 applies and also applied for the whole or part of the previous tax year —

i

where the interest income the borrower received in the previous tax year is the lower interest threshold or less, the standard interest rate;

ii

where the interest income the borrower received in the previous tax year is more than the lower interest threshold but not more than the higher interest threshold, the standard interest rate plus the additional interest rate;

iii

where the interest income the borrower received in the previous tax year is more than the higher interest threshold, the standard interest rate plus 3%;

b

for a borrower to whom Part 5 applies, where the Authority has determined under regulation 75(1) that the borrower may repay a loan by income-related instalments and the Authority considers that the interest income the borrower is likely to receive in the next 12 month period is—

i

the lower interest threshold or less, the standard interest rate;

ii

more than the lower interest threshold but not more than the higher interest threshold, the standard interest rate plus the additional interest rate;

iii

more than the higher interest threshold, the standard interest rate plus 3%;

c

for a borrower to whom Part 5 applies, in any period during which a borrower is required to pay to the Authority a fixed instalment in accordance with a notice served under regulation 73, the standard interest rate plus 3%;

d

where sub-paragraphs (a), (b) and (c) do not apply to a borrower, the standard interest rate.

2B

The interest income applied in paragraph (2A) will be from the tax year in which—

a

repayments are made under regulation 18 where—

i

a borrower makes repayments under regulation 18 during a tax year;

ii

the borrower requests, after the end of the tax year in sub-paragraph (i), that their interest rate is recalculated; and

iii

the borrower’s interest income in that tax year is less than the interest income the borrower received in the previous tax year;

b

a borrower repays all of the outstanding balance of the student loan under regulation 15(1) where—

i

the borrower requests that their interest rate is recalculated after the end of the tax year; and

ii

the borrower’s interest income in that tax year is less than the interest income the borrower received in the previous tax year.

2C

Where a borrower repays all of the outstanding balance of the student loan under regulation 15(1) in the tax year specified by regulation 15(2), the post-2012 student loans bear interest at the rate which will result in an annual percentage rate of charge determined in accordance with the Consumer Credit (Total Charge for Credit) Regulations 2010 equal to the standard interest rate.